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Markup rate of Van Staal reels

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Does anyone know what the markup rate of Van Staal reels is, and whether or not it differs significantly from other reel manufactures? (Markup being defined as - "the difference between the cost price and the selling price".)

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I don't know if that's true wholesale but I got a brand-new VS250 for $499 cash. I know the retail value is $649 so it would be a $150 markup (slightly under 24%).

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I don't know if that's true wholesale but I got a brand-new VS250 for $499 cash. I know the retail value is $649 so it would be a $150 markup (slightly under 24%).

 

 

Sorry, I should of specified that I meant the markup rate from production cost to selling price. smile.gif

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Sorry, I should of specified that I meant the markup rate from production cost to selling price. smile.gif

 

 

 

Why??

Do u plan on opening a tackle shop??

This kinda information is really never offered in anything u buy..

It's private for those in the industry..

Like looking in ur wife's purse..

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Sorry, I should of specified that I meant the markup rate from production cost to selling price. smile.gif

 

"markup" in retail is the difference between the wholesale price and the retail price.

 

 

 

There's a lot more cost involved with selling a VS reel with a lifetime warranty than just what it costs to produce the reel. Advertising, marketing, R&D, tools, rent, salaries, benefits, paid vacation, sick days, promotions, warranties, lawyers, accountants, 10% excise tax, etc, etc, etc. All those costs have to be added on to the wholesale cost of the reel - and they have to make a profit to stay in business.

 

 

 

The cost to produce something can sometimes be much less that the sum of the rest of the above costs that must be added to a product before it's real "cost" can be determined.

 

 

 

TimS

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What Tim says is so right on this subject.

 

I've been in an industry for nearly 25 years selling business-to-business. The notion that the "cost" of making a product subtracted from the selling price represents the "markup" or profit margin is soooooo over-simplified that I whince whenever I even hear somebody talk in those terms.

 

RussL.

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I'll bet it's less than you think...

 

Whats the point of your question anyway? Are you going to base your next reel purchase with this info?

 

Or is it a sensless troll?

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I have no idea of the markup on a VS.

Although, I have worked with enough manufacturers to know that

profit margins are determined less through actual costs than perceived value.

 

For example, one company I worked for put out two lines of outdoor sports apparel each year, spring and fall. At my first marketing meeting we put all the products on the table and then decied the market price for each item based on, get this, it's WOW factor! We valued each item at price points based on how we thought the target demographic would respond. The cooler something looked the higher the price, regardless of actual manufaturing or advertising costs.

The sickest thing was that the more durable, most expensive items to manufacture were usually the lowest priced items in the lineup!

Those items were of better quality and construction but just didn't WOW the crowd as much.

 

As to VS, we all know they are awsome manufacturers, and have WOW.

But is their product price anywhere near its production and marketing costs?

I doubt it.

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I'm just trying to get an idea of how much of the retail price is based on production, distribution and whatever other costs are included in producing and selling a fishing reel, and whether or not there is a significantly higher markup* rate for these reels verses others. (By markup* I'm referring to the difference between manufacturing cost, and retail price.)

 

I tend to be very analytical, and one of the things I'm always trying to figure out is why one product costs more than another, and if that price difference provides something that is worth anything to me. Names mean nothing to me, so I'm not willing to pay any money for them. Quality, performance, and warranty mean a lot to me and I'm willing to pay a high price to get it. For example, I'll pay significantly more for something from LL Bean because I know it will be high quality and backed by a virtually unlimited warranty.

 

I don't know what the warranty on a Shimano reel is, because I've never had to use it. Simply calling them and saying that a part is worn or broken gets you a new part in the mail a few days later, free of charge. So apparently the retail price of their products gives them a good enough profit margin that they don't need to rely on servicing reels, or charging for parts, or even charging for the shipping of those parts.

 

From what I hear about VS reels, they're now made so that you can't service them yourself and service from the company and replacement parts are very costly. So apparently the retail price isn't high enough to create adequate profit margins. Which must be why they have to increase profit with mandatory service from the manufacturer.

 

So that's why I'm wondering.............What are the production costs? Is the price of a VS based on quality, warranty, and the cost of production? Or, if I buy one, would I be paying for a "name" which means absolutely nothing to me?

 

 

(*1. Markup: the difference between the manufacturing cost or wholesale price of an item and its retail price.)

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As stated before, actual "manufacturing margins" are complicated computations, and need to be weighted for soft/hard costs.

 

I work for a company that manufactures products made from plastics. During a price negotiation with a large customer, he took one of my parts and put it on a scale. He took the weight of the part and computed the cost based on the spot price of the plastic resin it was manfuactured from. He came up with a rediculously low price. I put my thumb on the pan and started pushing. He asks me what I'm doing and I reply:

 

 

 

I'm adding in the $250,000 swiss tool, the 100,000 Sq Ft shop, the press operator.............

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When you factor in the labor costs the ammortization of the CNC machine cost of materials and of course the bad or rejects they are probably making 20-25% this is the margin that Penn has when you buy from the Gold Label which includes 2-reels and rods. So it all comes down to they don't make a hugh profit. Now clothing retailers make some coin mark up is substantial.

 

Dave Sr.

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VS now only offers a 1 year warranty, I just got a new VS200 and its only 1 year. Are you planning a reel to compete? A little peek maybe?wink.gif

 

This is not true, it is only one year if you never send it in for service

 

If you send it in at the end of every season then it is life time

 

 

go to the site and read the warrantee

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