$30 AGame backpack bag at Academy Possible Magellan replacement?

[SonicGuy]

I've been trying...trust me.

What should Innova do then? Sell the bags directly to consumers alienating their dealers...nope. The bag presumably cost a little more than the Magellan because while similar, it is better. Innova then has to mark it up and sell it dealers who also have to mark it up and sell it to consumers. Academy and Innova do not have "comparative business structures." Academy is a retail chain that has a bunch of in-house products. Why? Great margins typically. No middle man. Innova is a disc golf brand. They manufacture and distribute products to other retailers. Again, what should Innova do?

Innova DOES sell them directly to consumers. You are flat wrong.

 

[Consult20]

Are you kidding me? That was MY argument, not his!

Are you referring to the mis-sewn hero bags Innova was selling at a big discount? I know they were somewhere around $35-40.

 

[Glide]

Innova DOES sell them directly to consumers. You are flat wrong.

Innova's sales at their Factory Store probably represent less than 1% of the total sales of those bags. Nice try Mr. Technicality.

Again, what should Innova do?

 

[SonicGuy]

Innova's sales at their Factory Store probably represent less than 1% of the total sales of those bags. Nice try Mr. Technicality.

Again, what should Innova do?

Your questions make no sense. The reason why Innova sells the HeroPack for the $80 MSRP is because their brand value commands that much and that price point is underrepresented in the bag market. It has nothing to do with Innovas procurement costs or their place in the chain as you are contending. They have it priced as high as they can justify, no business prices their goods from the ground up based on costs, they price based on how much they can get.

 

[Glide]

Your questions make no sense. The reason why Innova sells the HeroPack for the $80 MSRP is because their brand value commands that much and that price point is underrepresented in the bag market. It has nothing to do with Innovas procurement costs or their place in the chain as you are contending. They have it priced as high as they can justify, no business prices their goods from the ground up based on costs, they price based on how much they can get.

"... what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul."

- Billy Madison

 

[SonicGuy]

Well, debate economics with a guy that runs a disc golf business. You are in the business equivalent of your parent's basement.

 

[Glide]

Well, debate economics with a guy that runs a disc golf business. You are in the business equivalent of your parent's basement.

I have a Bachelors in Economics and have run a successful business for just short of nine years. I have my very own basement...in the house my wife and I own (o.k., pay a mortgage on...I don't want you getting all technical on me about not owning it outright)...I do other smart stuff too like putting money monthly into my kids' college savings accounts since they were born.

Riddle me this o'qualified one...if Innova and Academy are so similar and Innova is simply pricing the HeroPack for as much money as they can get. Then why isn't Academy looking at what Innova is selling them for and increasing the Magellan's price from $35 to say even $50 or $60? Hint...hint...it's not altruism.

Everyone...stand back...SonicGuy is going to crack open his second Angry Orchard before replying.

 

[SonicGuy]

I have a Bachelors in Economics and have run a successful business for just short of nine years. I have my very own basement...in the house my wife and I own (o.k., pay a mortgage on...I don't want you getting all technical on me about not owning it outright)...I do other smart stuff too like putting money monthly into my kids' college savings accounts since they were born.

Riddle me this o'qualified one...if Innova and Academy are so similar and Innova is simply pricing the HeroPack for as much money as they can get. Then why isn't Academy looking at what Innova is selling them for and increasing the Magellan's price from $35 to say even $50 or $60? Hint...hint...it's not altruism.

Everyone...stand back...SonicGuy is going to crack open his second Angry Orchard before replying.

Ooohh, a bachelor's, welcome to the vast majority of mediocre Americans.

If I were to guess I would say that Academy has no idea just how stupid the disc golf community is and how willing they are to pay exorbitant fees for simple merchandise. Just a guess.

 

[Queen]

So, did the dealer message about the new innova bags say anything about colors or patterns?

I'm asking for a friend.

 

[SonicGuy]

So, did the dealer message about the new innova bags say anything about colors or patterns?

I'm asking for a friend.

After seeing your bad a$$ fabric paint job I think you are better off doing that to any bag you buy. I think it looks awesome.

 

[Queen]

After seeing your bad a$$ fabric paint job I think you are better off doing that to any bag you buy. I think it looks awesome.

Thank you!

 

[DanJon]

.....no business prices their goods from the ground up based on costs, they price based on how much they can get.

The vast majority of businesses set their prices based on costs.

Profit is usually treated as a fixed cost on top of everything else.

I spent this much, I owe this much, I have to make this much to stay in business.

You're obviously not in Business Law.

 

[Ender175]

Everyone...stand back...SonicGuy is going to crack open his second Angry Orchard before replying.

Hey! Hey! Don't drag Angry Orchard into this! Stone Dry and Old Fashioned are as good as anything else out there

 

[SonicGuy]

The vast majority of businesses set their prices based on costs.

Profit is usually treated as a fixed cost on top of everything else.

I spent this much, I owe this much, I have to make this much to stay in business.

You're obviously not in Business Law.

Sorry, you are wrong. Price point is determined by the market. Businesses should know how much they can make off a product before they buy anything. Can you imagine a business that says "whelp we purchased 100 widgets for $1000, time to see if anyone would like to buy them!". What a ridiculous thought. If the COGS are too high for the market price they don't just price the product higher, they rework the COG or they drop the product.

 

[Aim For The Chains]

Why people even debate with sonic is laughable. He has said to be a straight troll and yet somehow continues to run free.

He obviously has no clue about retail or really any sales biz. Hes a lawyer who likes cheap ****. Go figure lol.

 

[SonicGuy]

Why people even debate with sonic is laughable. He has said to be a straight troll and yet somehow continues to run free.

He obviously has no clue about retail or really any sales biz. Hes a lawyer who likes cheap ****. Go figure lol.

Hah, all righty then. Care to show where I am wrong? My position is that you price to the market, their position is you price to your costs. Which do you do in your business?

Let's say discs cost you $9 wholesale with a MSRP of $16 yet you can price them at $18 without impacting volume. According to these dunderheads you price at $16. Do you agree?

 

[Aim For The Chains]

Well like most stuff prices will probably float from $14-$20 depending on who is selling it.

Ive sold discs at $20 no problem while competitor was selling for $16. Volume is all that really matters even if we are talking $200 steak vs $20. Different customers/ markets. Markup on bags/baskets is the only healthy part of the DG sales market. Discs are the bare rations at retail lol.

Academy doesnt give a **** about disc golf. Disc golf manufacturers do though.

 

[SonicGuy]

Well like most stuff prices will probably float from $14-$20 depending on who is selling it.

Ive sold discs at $20 no problem while competitor was selling for $16. Volume is all that really matters even if we are talking $200 steak vs $20. Different customers/ markets. Markup on bags/baskets is the only healthy part of the DG sales market. Discs are the bare rations at retail lol.

Well there we go, we agree. Kumbaya baby.

 

[MonkeyGrass]

Sonic is not wrong here guys...

I own multiple businesses, and if you are a good businessman - your price what the market is willing to pay. I can take the same product/service and sell it for $4k, or $8k - only difference is what the client is willing to pay, and the value they perceive at the price point. Period.

Cost is mostly fixed - yes (outside of some supply variances). You have to get cost + x% to make a bare minimum off your sales and cover costs and retail markup (a.k.a MAP). But anything ABOVE Cost + x% is pure profit, and THAT is dictated by market demand. If the demand is there, or the brand recognition is good enough, you can charge the premium and get away with it.

Do you want generic brand "butter crackers" for $.99, or do you want Ritz Crackers for $2.99? Or does anyone actually think it takes 3x the money to make a "Ritz"???

And yes - that's exactly what Innova has done with the HeroPack. They took a $30 Magellan, added about $5 worth of structural improvements, and then did some market analysis and saw that there were no decent bags below $100. So they set their MSRP at $79, knowing there was going to be 1) demand for an Innova branded backpack at that price and 2) their "cost" is merely a few dollars more than the Magellan, and this was going to be a money maker, and 3) they can discount that for TD's and sponsors, and still end up with a winner.

 

[DanJon]

Hah, all righty then. Care to show where I am wrong? My position is that you price to the market, their position is you price to your costs. Which do you do in your business?

Let's say discs cost you $9 wholesale with a MSRP of $16 yet you can price them at $18 without impacting volume. According to these dunderheads you price at $16. Do you agree?

You're misrepresenting what I said.

You definitely are a lawyer.