yesterday i went to What's your Racket and i bought 2 armortec 700's and the very nice owner gave me a free yonex 2003 badminton outfit
Good point, if you payed list then you were done and no wonder he gave you a Yonex outfit. What was the outfit?
awsome place to go to i got my armortec 500 there came out to $174 after tax and strung with bg68ti strings and stringing was free
I'd say that's an impossible price unless you're the store owner's relative, or that the racquets are not CD versions. I know what the wholesale price is and if the shop is selling for $174CAD after tax, the store is losing money.
If the store is just starting, it might be promoting by selling without profit. When they've attracted enough customers, they raise the price. Just a guess, dunno if it's right...
If the racquets are CD versions, they are actually losing money and I would say about $10-20 per racquet. If a store is starting, wouldn't they try to sell mid-priced versions for dirt cheap while trying to cause impulse buyers to buy a top-of-the-line racquets while they are in the store?
Someone needs to get their eyes checked... But where on earth do you see that the AT700 is selling for less than $174?? The lee's website price is $265 for an AT700 while it's $170 for an AT500
ai, i thought it was the same poster that started the thread. Guess I really do need my eye's checked... Guess the $174 isn't a deal at all....
yes the raquet is a cd version if their losing money or not at this price i don't know but i think i got a pretty good deal on it
Reading up this post again... I withdraw my oppinion about pricing lower than profit o attract customers, because those are reasonable prices for retailers to be selling the rackets... They may not make as much as other stores (if only considering ONE quantity) but they should (theoretically speaking) make more overall
What you have got to remember is a racket sold at MRP of 150 units (generic price term) certainly did not cost that much to make. Supplier makes for 30 units and Yonex sell it on for say 90-100 units making 60-70 profit, the retailer then sells it for 135-150 units again making profit of 35-50 units. I would very much like to know the cost price of a racket and also the resale value to the end point of supply (shops) If it didn't make a good profit Yonex wouldn't be doing it.
I think the formula is basically the following: CtS = Cost to supplier SP = Supplier price DP = Distributor price WS = Wholesale/Retailer price CP = Consumer price Current Level = (100 + profit margin)/100 *Previous Level e.g. DP = (100 + profit margin)/100 *SP So if we have CP (for MP100) = 200 (as an example) and profit margin of 40%, then WS = 200/1.4 = 143 DP = 102 (assuming same profit margin) SP = 72 and CtS = 52 So we can calculate backwards if we know the profit margin used at the various stages to get the actual product costs. The formula is pretty simplistics as the cost used could include overhead costs.
You're not far off in your thinking but there are a few factors to consider. 1) In most cases the retail price is not the manufacturers suggested retail 2) A sales or gross profit margin is actually a multiplier of 1.67 not 1.4 3) There are sales incentives given to good customers but there are diminishing returns on discounts available in any business. The bottom line is that there is less profit than you think in the sporting goods business.
I agree with eggroll.... ...lol.. The seller only made around $20-30 profit selling the AT500. That's up to the consumers to decide where that's a lot of profit or not. But then you gotta bring in the bills for operating a store.
