BallReviews

General Category => Miscellaneous => Topic started by: Rock77 on July 30, 2003, 03:22:09 AM

Title: How much do you think it costs??
Post by: Rock77 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.
--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: mumzie 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.
--------------------
Bowling? Of course it's a sport.

Edited on 7/30/2003 6:35 PM
Title: Re: How much do you think it costs??
Post by: Pinbuster 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.

Title: Re: How much do you think it costs??
Post by: Rock77 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!!!
--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: Pinbuster 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.
Title: Re: How much do you think it costs??
Post by: Rock77 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??
--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: MI 2 AZ 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
Title: Re: How much do you think it costs??
Post by: HamPster 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.
--------------------
Forget Kung Fu, I know Ron Bahr!!!

The only difference between youth and adult leagues are that the big boys are allowed to whine.  They're more entertaining anyway.
Title: Re: How much do you think it costs??
Post by: Pinbuster 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.
Title: Re: How much do you think it costs??
Post by: charlest 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!
--------------------
"Those who do not remember history are doomed to repeat it."
Title: Re: How much do you think it costs??
Post by: mumzie 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.
--------------------
Bowling? Of course it's a sport.
Title: Re: How much do you think it costs??
Post by: wasted talent 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.
Title: Re: How much do you think it costs??
Post by: channel surfer 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.
--------------------
My Bowling Clinic Site: http://channelsurfers.vze.com

ASK A PRO:http://channelsurfers.vze.com/atp.shtml

Bowl.. Grab life by the balls.

Money is no object to me because I dont have any...
Title: Re: How much do you think it costs??
Post by: Pinbuster 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 .
Title: Re: How much do you think it costs??
Post by: JOE FALCO 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?
--------------------
Hit them light and watch them fight
      J O E - F A L C O
Title: Re: How much do you think it costs??
Post by: Rock77 on July 31, 2003, 08:05:14 AM
quote:
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!
 


Electronics, I know, I have priced parts to build my own stuff and it is dirt cheap. Cars are the same, normally a $15-20,000 car only costs about $5-8,000 to make.


 
quote:
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?


Because Lane 1 puts diamonds in their balls!!

On the topic, bowling is a very expensive sport to play. Especially when unlike football or basketball, you cannot have just one ball. You need several balls to match up lane conditions. That in turn costs us more money, especially when you compare the shoe pricing. SST's or Tour Ultras cost about as much as Air Jordans do, and we dont get air soles in our shoes!!
--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: livespive on July 31, 2003, 08:08:30 AM
quote:
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!
--------------------
"Those who do not remember history are doomed to repeat it."


Yeah, I think markup on Jewelry is about 900%, Car stereo equipment is about 500%

A friend told me that about the jewwlry and I didn't really belive him so I put it to the test.  I was watching a jem stone show where they were supposed to be selling at rock bottom prices straight from the mine.  They give you the retail price then talk a bit, then give you their price.  So I would take the retail price and devide by 9.  Low and behold their price was the retail price devided by 9 +/- maybey 10% on a lot of their goods.
--------------------
Eric T. Spivey, P.E.
 Visionary Test Staff Member
Title: Re: How much do you think it costs??
Post by: JOE FALCO on July 31, 2003, 08:09:55 AM
DIAMONDS .. THAT'S FUNNY!!
--------------------
Hit them light and watch them fight
      J O E - F A L C O
Title: Re: How much do you think it costs??
Post by: michelle on July 31, 2003, 08:27:01 AM
Content Removed by Webmaster
Title: Re: How much do you think it costs??
Post by: JOE FALCO on July 31, 2003, 08:31:28 AM
AGREE! .. WHY (aside from the DIAMONDS) is LANE 1 so expensive?
--------------------
Hit them light and watch them fight
      J O E - F A L C O
Title: Re: How much do you think it costs??
Post by: Rock77 on July 31, 2003, 09:31:56 AM
quote:
IAccording to my inside track, The cost to make the Freak Out is $32.67.
 



That is ridiculous. Could you imagine buying bowling balls at the price it takes to make one!! Thats why Track had such a great year in sales. When it costs $32.67 to make a high performance ball and then the pro shops sell it for $150-$175, and tons of people are purchasing the Morpheus core balls.....that is good business for Track and many other companies!!

I am gonna start making my own equipment! Taking pre-orders now!! It costs me $35.00 to make, I sell to you for $135.00.....

--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: Rock77 on July 31, 2003, 10:17:12 AM
quote:
bowling is NOT the most expensive sport to play....


I agree, but by no means is it cheap either!!
--------------------
How am I supposed to knock all 10 down with one ball?!?
Title: Re: How much do you think it costs??
Post by: michelle on July 31, 2003, 10:17:29 AM
I didn't even think about pool...and I have a friggin table sitting upstairs at the house (and it was definitely more than I have invested in bowling equipment).

But it really brought the room together
Title: Re: How much do you think it costs??
Post by: JOE FALCO on July 31, 2003, 10:53:52 AM
Autos .. the difference between one manufacturer to another could be the engine or maybe the BRAKES .. someone said the PINTO to the FERRARI .. obvious differences. Pool tables .. you can get WOOD or SLATE .. pockets or returns .. all things that are obvious and expensive .. NOW .. BOWLING BALLS what can they do to make the cost go up on a bowling ball 50/70% .. especially for a BOWLER who is NOT A PROFESSIONAL .. something wrong with the cost of LANE 1 balls .. and if we keep paying it .. they WILL KEEP CHARGING IT! I JUST DON'T UNDERSTAND!
--------------------
Hit them light and watch them fight
      J O E - F A L C O
Title: Re: How much do you think it costs??
Post by: michelle on July 31, 2003, 11:09:41 AM

First and foremost...simple economic theory enters into the picture- charge what the market will bear.

Secondly, smaller companies do not get the same pricing on raw goods as the larger companies.  Seems to me that Lane#1 was having the additional hand to pay in the name of Brunswick.

Third, quality R&D doesn't come cheap.
Title: Re: How much do you think it costs??
Post by: Smash49 on July 31, 2003, 12:52:38 PM
There are many things involved besides the actual cost of making the product.  Add in all the info sheets that are sent to the Pro Shops, printing cost and materials, advertising in magazines and other media, accounting cost, Patents, lawyers, machinery, packaging, dealing with the PBA, travel cost, electric and gas bills, salaries etc.etc....  There are a lot of cost besides production.  I would be curious how many of a certain ball units sell and their numbers.  Let say you sell 10,000 units of a ball @ $32.67 or even $60.00 that's not a lot of money.  Sure there are tax deductions etc.  

Smash49
--------------------
Smash49
robert@bowlersslidesock.com
www.bowlersslidesock.com
Title: Re: How much do you think it costs??
Post by: Mustang Guy on July 31, 2003, 01:57:41 PM
Poor Joe Falco keeps asking the same question and it isn't getting answered.  Joe the reason why Lane 1 balls are some damn expensive is because:

1.  They have to buy balls from brunswick (as I buy balls from storm) and since they aren't OWNED by brunswick, they can charge whatever they want.  Brunswick probably makes a hefty penny per ball on lane 1 balls.  

2.  They don't sell to distributors only Pro Shops so they actually wholesale out their product.  So instead of marking it up the traditional 40% they would to a distributor they probably tack on an extra 20% that the distributor would to a pro shop.  So they make a hefty markup to the pro shops because there isn't any distributors involved in the mix.  

This is all best guess, but I'm sure that is pretty damn close.

Thanks,
--------------------
Roger Noordhoek
Technical & Customer
Services Manager
Roto Grip, Inc.
Title: Re: How much do you think it costs??
Post by: channel surfer on July 31, 2003, 01:57:51 PM
But pro bowlers who are sponsored get the balls for free! Hmm....
--------------------
My Bowling Clinic Site: http://channelsurfers.vze.com

ASK A PRO:http://channelsurfers.vze.com/atp.shtml

Bowl.. Grab life by the balls.

Money is no object to me because I dont have any...
Title: Re: How much do you think it costs??
Post by: michelle on July 31, 2003, 02:13:43 PM
quote:
But pro bowlers who are sponsored get the balls for free! Hmm....



Surely you realize that not every one out there on either tour has a deal.  There are a fair number of players on both tours that are writing a check for truck services on a regular basis...
Title: Re: How much do you think it costs??
Post by: mumzie on July 31, 2003, 02:32:40 PM
Michelle is right.
For a "pro" to get a ball off the truck is $50-$100, then $30 for drilling - grips and slugs? Add another $10-$20. Granted - not what you pay at your local center, but when you may need to drill up 3-4 a week just to stay in the hunt - NOT CHEAP!!!!

Second thought - remember the big flap over the space shuttle toilet seats a few years ago? The government was being billed $700 apiece for them? Well - simple economics. When you manufacture a product, you have to AT LEAST cover your R & D and production costs - that's to just break even. When you make 10 toilet seats over the life of the project, they're gonna be expensive...

So when you're talking bowling balls - I don't know how many of each model are made, but I'm sure that each one isn't in the 100's of millions... They're gonna be a bit more expensive than golf balls - which I'm sure are made in at least the 10s of millions for each design.
--------------------
Bowling? Of course it's a sport.
Title: Re: How much do you think it costs??
Post by: Smash49 on July 31, 2003, 05:07:34 PM
Nothing like being blunt, forward and to the point

Smash49
--------------------
Smash49
robert@bowlersslidesock.com
www.bowlersslidesock.com
Title: Re: How much do you think it costs??
Post by: wasted talent on August 01, 2003, 12:43:49 AM
Del Warren said in a Pro Shop seminar once that the morpheous core cost $30,000 to design. That is the core alone. Plus he has to pay Columbia to produce Track's bowling balls. Plastic costs around $20.00 per ball to make and everything else is around $40 - $50 according to sources that I've talked to.