View Full Version : Carbon prices Falling! Board prices Falling?
18th November 2008, 02:41 AM
With the recent world financial problems, I just read that carbon prices are falling by massive amounts.
When will this be reflected in StarBoard windsurfing board prices?
18th November 2008, 10:15 AM
I would also like to see windsurfing industry adjust their pricing but I think it will take time.
First, i expect this reduce in oil pricing and in all their derivates keeps stable or reduce more, but I think it will take a bit more to see if they dont raise again. My personal idea is that the industries, not only windsurfing, but them that depend on oil derivates need a bit more time to be confidence that this new pricing is an standard and not an exception.
The second and most important thing is that suppliers of materials produce big quantities for stock and they negociate pricings for some periods of time with their suppliers and with their customers. In some cases like this one, the suppliers can feel the benefit of mid-term price fixings, but in the opposite cases (like in the past) they suffered this and had to keep their pricing despite the oil raised dramatically.
I think at least until their stocks are low and they need to buy new materials to produce new big quantities then the price will be the same, but will be reduced once stock rotates again.
So I think, if the prices keep stable we will have a reduce but once the suppliers of the suppliers (that is sometimes longer than we think) rotate all the inventory and produce again with the new pricing.
Wow, difficult to explain for me that do not have English as a natural language...but seems ok.
Best regards, and have good wind!
18th November 2008, 10:28 AM
Really carbon prices aren't actually on the ceiling. I've been working with carbon 284 and 282 products for about 3 years now, and the price has been ranging from $32 to maybe 60 USD per yard (50 inch wide format), but it's dropped off a bit from the high more than a year ago. Pricey stuff, yeah, but not out of this world, considering the qualities of the material.
I think of overall product pricing having more to do with exchange rates, transportation and applicable VAT/import charges. Undoubtedly, the falling global markets we're seeing now should offer more attractive price structures, at least from my outlook on things. Still though, my personal windsurfing investments have not been curbed by the falling stock markets and the more recent volatility we're seeing these days. Some stuff is truly core to our lives and well being, and a bit less subject to more fussy economical cycles.
18th November 2008, 03:41 PM
You may want to take a look at the bigger picture not only the fall in carbon or whatever prices... all main currencies are worth peanuts against the US dollar these days and all brands charge in US$ as well as Cobra...
18th November 2008, 09:16 PM
The hegemony of the US dollar as the world's reserve currency is about to end. Think about it - the world toils to send the US ship loads of stuff and the US sends them back some worthless paper, often not bothering with the paper part, just the worthless credits. The rush to the exits to get out of US dollar assets will be .... well..... biblical.
(I don't foresee windsurfing equipment cost coming down anytime soon)
18th November 2008, 11:39 PM
The only item in windsurfing that needs a price adjust is the carbon boom. They are right nor way over priced.
Maui Sail for a 230-280 boom is $1,200.00
HPL for the same sizes $1400
and etc. etc. This prices are way to high.
19th November 2008, 12:45 AM
I just bought a new HPL 245 carbon boom from Sailworks for $650. They told me that HPL has stopped making carbon booms.
19th November 2008, 06:23 AM
how come you can buy a carbon bike with shimano ultegra for not much more than a carbon boom?
19th November 2008, 02:37 PM
Quantities: there are more bikers than windsurfers. Carbon represents a small part of the price you pay. The rest being... well, all the rest. R&D, Marketing and other fix costs can be amortized on quantities, raw material not. Cost increase of raw materials is a also good excuse to increase selling prices. This being said, windsurf is probably as tough a business as many others those days, and we have to pay the price to let it survive. And booms/mats are items with high carbon content anyway.
19th November 2008, 06:54 PM
Thing is carbon stock was bought and inventory that was at high prices needs to be then manufactered into product and then sold at the high price to cover original cost.
Another point if polls many eyars ago are true , windsurfers are of a higher income bracket, usually blue collared professional, lets see how the wall street crash affects equipment sales in the next year or so.
everybody is being tight with buying, been happening for months now a knee jerk reaction to the market. especially in the U.S.
some wierd things happening i expect to see luxury items really hit a low in the next year, ie used sailboats, higher end exotics,cars houses (a non brainer).
there will be less exotic travel ,i bet many windsurfing high end vacation spots will be hit as well especailly where americans go. ie: Maui, which is already in a slump due to local government policies Ie: vacation rentals.
if you have the cash and arent affected by the marketmay be time to buy some items.
19th November 2008, 07:37 PM
actually AFAIK Cobra charges in Euros.
Wouldn't help much though, as demand is dropping and they will probably have to carry some bad debt as well; if anything would think that the dropping shipping rates would have a beneficial effect more than the dropping carbon price.
20th November 2008, 08:15 PM
good point 11, shipping from west coast of Canada to central Canada add about 100 plus dollars to the price of a board that the consumer has to swallow.Now that a long ways BUT hopefully that will drop a good amount.
and induce some sales.
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