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Author Topic: How much do you think it costs??  (Read 4643 times)

Rock77

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How much do you think it costs??
« on: July 30, 2003, 03:22:09 AM »
How much do you think it actually costs a ball manufacturer to make a ball?? All factors considered: materials, time, research and development, production etc... Lets use a high performance ball. You pick the ball and breakdown the cost.
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mumzie

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Re: How much do you think it costs??
« Reply #1 on: July 30, 2003, 06:25:10 PM »
No real clue, but based on business principles, probably half of distributor's cost for the manufacture and development. That would give the ball manufacturer 50% gross margin, so they would probably be running 10-15% net profit, figuring overhead expenses.
If a company makes much less than that before taxes, they can't survive.

Added on edit:
I'm being EXTREMELY general in this case. Yes, I know some industries operate on much less margin. And some, on much, much more. Just a SWAG, you know.
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Edited on 7/30/2003 6:35 PM
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Pinbuster

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Re: How much do you think it costs??
« Reply #2 on: July 30, 2003, 08:35:34 PM »
BTM had an article on this some time back.

I believe the number was around $20 to $30 a ball.

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Rock77

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Re: How much do you think it costs??
« Reply #3 on: July 30, 2003, 08:40:09 PM »
20-30 bucks a ball!!! Are you serious?!? And then they charge us $150+ for it!! My goodness, we are getting ripped off!!!
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Pinbuster

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Re: How much do you think it costs??
« Reply #4 on: July 30, 2003, 08:42:45 PM »
Again I don't know the numbers for sure.

But they would charge a distributor around $60.

Then the distributor charges the proshop $100.

Each part of the system has to get a cut to make a profit.
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Rock77

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Re: How much do you think it costs??
« Reply #5 on: July 30, 2003, 08:58:24 PM »
quote:
Again I don't know the numbers for sure.

But they would charge a distributor around $60.

Then the distributor charges the proshop $100.

Each part of the system has to get a cut to make a profit.
 


And so on and so forth... thats why by the time it reaches us its already at least $100 more than the cost to make it. Who can we sell to to make a profit from??
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MI 2 AZ

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Re: How much do you think it costs??
« Reply #6 on: July 30, 2003, 09:03:16 PM »
quote:
Who can we sell to to make a profit from??


Hey I heard those guys from Down Under are used to paying high prices.   j/k
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HamPster

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Re: How much do you think it costs??
« Reply #7 on: July 30, 2003, 09:40:06 PM »
It's just like everything else.  Like a movie or something.  They put it on the cd, send it to the distributors.  The distributors send it to the stores, and then you buy it, most of the time at 200 percent of the cost it took to make it.
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Pinbuster

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Re: How much do you think it costs??
« Reply #8 on: July 30, 2003, 09:44:16 PM »
We are getting off topic to a degree here but…..

Each level provides a service. The ball manufacture designs, procures raw materials, manufactures, markets a product. They do not want to be in the distribution business. So they sell the product to distributors in bulk.

The distributors warehouse, inventory, produce catalogues, and ship product to retailers. They provide a close point for the retailer to order from. This allows for lower shipping cost to the retailer and the ability to get product quickly. For this service they charge a mark up on everything they sell. They get stuck at times if they get a bad product or the product becomes obsolete. They sometimes get stuck with deadbeats who do not pay them for the equipment they have shipped.

The retailer provides the sales support. They have a limited amount of product on site that they must pay for in advance of sale costing them capital, they deal with defective product, deadbeat buyers, insurance, utilities, equipment, salary, taxes, etc. For this service they get a markup on the product they sell.

Most retail business have traditionally marked up the product about 40% over their wholesale cost.

While the margins may be different because some deal more in volume but these principals apply whether you are talking a grocery store, jewelry store, or wal-mart. Any place that sells some commodity must have a mark up to make a profit.

Now when you go down and buy your air Jordan Nike sneakers and pay $100 for them do you wonder how you can re-sell them to make money? There has to be an end of the chain and that is the consumer. They buy to product for personal reasons. To provide utility, enjoyment, warmth, comfort, energy, etc.

There are always choices in prices to be made. Another pair of sneakers might only cost $30 and you have to decide are the Nike’s worth the extra $$$. Same with bowling balls except in this case the driller either thru measuring your hand or ability to hit your specs provides various amounts of skill and can make a difference in how much you are willing to pay for the ball or drilling service.

Whew !!!! Enough of econ 101.
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charlest

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Re: How much do you think it costs??
« Reply #9 on: July 31, 2003, 12:00:15 AM »
If you think bowling balls are bad, you've got, as they used to say, another think coming!
Try electronics (NOT made in Asia), or jewelry, or cars or watches.
Yipes! One could plotz!
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mumzie

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Re: How much do you think it costs??
« Reply #10 on: July 31, 2003, 12:33:27 AM »
And - don't forget.
They make a ball for $30.
They sell it to the distributor for $60.
The distributor sells it to the retailer for $100.
The retailer sells it to me for $180.
Each step of the way, Uncle Sam and his cousins take a large percentage of any profit made. Also the insurance companies. After that, most of that profit cash is probably poured back into the company to find the latest and greatest R & D. If the owner of the business is like most SMALL business owners, they might make $40,000-$60,000 after taxes and expenses. And THAT. my friends, is a fantastic income for a small business owner.

Business ownership is not all it's cracked up to be.

Been there, done that!!! And really glad I don't do it any more.
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wasted talent

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Re: How much do you think it costs??
« Reply #11 on: July 31, 2003, 12:45:05 AM »
The actual cost for a manufacturer is around $45 - $50 per ball from what I've been told. Not sure if that includes just the manufacturing or the R&D and everything else. The distributor pays a little over $100 for high performance depending on their level of purchasing with the manufacturer. The distributor then sells to the pro shop for around $130 depending on the pro shops purchase level. Some shops pay more and some pay less. These numbers are a little more realistic compared to others given. I personally do not see how some distributors survive. Most of the time they get stuck with old balls and have to discount them to below cost to sell them. I guess all of the internet sells help out.
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channel surfer

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Re: How much do you think it costs??
« Reply #12 on: July 31, 2003, 01:07:22 AM »
Have yall noticed that this is probably the most expensive sport to play??

Look at football, you can buy one for like 5 bucks... Only if things could be cheaper ya know..

Well golf is pretty expensive i believe.. But i think bowling may be #1 on the list for most expensive to play.
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Pinbuster

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Re: How much do you think it costs??
« Reply #13 on: July 31, 2003, 07:16:45 AM »
Football?

If you are talking about some sandlot type maybe you could get away with just a ball and some sneakers. Try costing out a full uniform with helmet. In school I would wear out a pair of $100 shoes each year. Plus I would go thru 3 practice jerseys and one game uniform in a season.

Nothing cheap about football and don't forget the medical bills .
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JOE FALCO

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Re: How much do you think it costs??
« Reply #14 on: July 31, 2003, 07:38:26 AM »
On the BOWLING topic .. Agree with all the figures stated .. understand the final PRO SHOP is the guy who stands the MOST to loose .. but looking at ALL THIS .. WHY ARE LANE 1 BALLS SO EXPENSIVE?
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