2002 composites

[cz606]

I have heard rumors that some places are desperately trying to unload their old composites to make room for the new, and have even heard that the synergy can be found for under $100 if you do some digging. I am not sure that my source is the most reliable and was just wondering if anyone else has seen or heard anything along these lines. Thanks- Chris

[MDE3]

Have heard the same rumour on the Synergy. But dont know the site.

[BkHdTpShlf]

I find that really hard to believe with the demand for all these composites but if you find out where please share the wealth. Thanks.
Darrell Interbartolo/Rink Rat Rep.

[JMUDukes26]

See... I don't find it that hard to believe since I feel pricing on one piece stics in inflated by limited supply. The suppliers are making the sticks dirt cheap, and they're selling them to the public at huge profits under the theory that it will mae you so much better. They'll have something new and great for this season, and the stics should come down to their fair maret value...

Gary

[Justin1933]

I find this a bit funny...Sticks are definitely not being made "dirt cheap." Wood Sticks...Sure..but composites no way. Do you have any idea what goes in to making composite stick? How many sticks need to be run through tests? How many free sticks need to be sent out because they are covered under warranty?

Sure, companies make a profit, but huge profits, I doubt it...

Visit www.missionhockey.com

[missionhockey21]

I agree Justin :-)

[MDE3]

Actually like any other "mass manufactured product", there is a development and intro cost which has to be amortized over the projected production run, If done on the intial production run of say 100,000 units (sticks in this case) and the development cost is $1,000,000 and then intro costs including promotions and and free bee's another $1,000,000 we have a line cost before the actual manufacturing cost of about $20.00/stick. Assume production costs are in the same area of $20.00/ stick, shipping costs about $5.00/ stick - we have a base cost of about $45.00. Figure maybe for every stick sold, one is given away on warrany. That put's the cost around $90.00/ stick. Dealer net is right around there, or was when they first came out. It's almost a break even proposition. Unless..... the stick is very successfull and you make another 100,000 units. Then you have no more development costs, and probably only 50% of the promotional costs. Basic manufacturing costs, now drop to $30,00/stick, and warranty costs also drop. Now the sticks cost about $60.00 ea. and the profits are substantial. If the product (in this case a Synergy) is a major hit and a third run is possible, then the whole exercise becomes a "home run" for the supplier.

But we live in a consumer based society with constantly changing inputs to our daily lives. We get bored easily. Even if that stick remains the best thing since sliced bread, a portion - a big portion - of the market will buy something "new" because it is new and you are told it is better. If you are told well enough and often enough - that portion of the market gets even larger. So the cycle begins again. In many cases the new model has only "cosmetic changes, or slight changes in geometry which do not have the same development costs as the original product. This "new model is even more profitable as long as somebody doesnt mess up and change something essential that makes the product "a "dog"

When the "new" stuff hit's the street, last year's model is just ancient history. and "dumping" sticks for $100.00 a piece at this point in the products cycle is not only likely - but smart and profitable.

[JMUDukes26]

Actually, I have a pretty fair knowledge of what goes into producing composite products. I helped to build a Rowing Skull out of graphipe and Kelvar composites, and when we were done, if floated! But my understanding at least, is that most of the expense in producing a 1-piece comes from R&D and Marketing. Once you have the factories tooled, and you're producing the product, the materials aren't really THAT expensive tp produce.

Gary

[JMUDukes26]

I also agree, I would be interested to see how many sticks Easton sold, as the Synergy was truly a big hit, and broke ground for a new era of hockey sticks. One of the other things that makes the Synergy so profitable isn it really isn't a true "one piece" stick (at least from what I have heard). In essence, it is one of the Easton Shafts, with A Z-Carbon stlye blade built into it. While it appears to be a one piece, its really little more technology than the previous products Easton had been marketing, its basically a lightweight gimmick.

Also, the $100 Synergies I believe are listed as "Famous Maker" so they carry no warranty, and have no decals on them as they are not officially an Easton product. The benefit of buying one of these is the price, but if it breaks, you have no warranty, and you dropped $100 bucks on a stick.

Gary

[MDE3]

Exactly

[MDE3]

Interesting information. Maybe these "famous makers" are also factory "seconds" with known flaws. (known by the manufacturer anyway). Now there's a real "home run" because the occurence of a percentage of these "seconds" or "rejects" are normally built in as a projected cost in the original product costing forecast and in fact are $00.00 value inventory. That is of course if the number of "rejects" stays within the projected percentage. Actually these sticks are usually the property of the OEM who actually makes the sticks, not usually the Sports company who usually concept designs them and then develops the prototypes or pays for the development. The product is normally manufactured under a subcontract licencing agreement by a specialized manufacturer. In the subcontract suppliers price to the sports company - the cost of "rejects" would be included. But after the production runs are over and you have 1000 rejects left over - what do you do with them?

<P ID="edit"><FONT SIZE=-1><EM>Edited by MDE3 on 04/05/03 01:45 AM.</EM></FONT></P>