Page 2 of 4 FirstFirst 1 2 3 4 LastLast
Results 11 to 20 of 32

Thread: The fly reel rip off

  1. #11
    Join Date
    Dec 2006
    Location
    Gauteng
    Posts
    1,306

    Default

    Quote Originally Posted by lacustris View Post
    Selling price for 7 or more from the China SUPPLIER (who *may* not be the actual MANUFACTURER) = USD35.00 = ZAR 350.00, before clearing costs+VAT (which may/may not be incurred by a private import, but will be incurred by any normal commercial import).

    Now do understand that the normal MARKUP in the industry (flyfishing and other) is often 100% (can be more or less depending upon industry). This is required to cover local overhead, inventory, financing & labour costs, as well as turn a profit.

    Thus the WHOLESALER is likely to sell this reel to the RETAILER at 100% markup = R700.

    The RETAILER also has to make a living and is often making the same 100% markup for the same reason as the WHOLESALER.

    Thus the RETAILER is likely to sell this reel to the CUSTOMER at 100% markup = R1400.

    This is how business works.

    Just because you *can* buy direct from the China SUPPLIER (who *may* not be the actual MANUFACTURER) does not mean that the local WHOLESALER/RETAILER is ripping anyone off, it is just how business works.

    NOTE - any wonder what the reel actually COSTS to manufacture in China?
    I am sure that the China SUPPLIER is making at least 100% markup themselves and they are probably getting it from the actual MANUFACTURER, thus:

    China SUPPLIER sells for R350 = China SUPPLIER cost from China MANUFACTURER (based on 100% markup)= R175.
    and thus
    China MANUFACTURER sells for R175 = China MANUFACTURER actual MANUFACTURING costs (direct material+machining+labour cost) (based on 100% markup)= ~R90.

    Everyone is making a profit on the reel manufacture (as do the suppliers of the raw materials used in the reel, the labourers who work for the manufacturer, the government supplying water/electricity used in production) etc.
    Last edited by GGY; 11-07-13 at 12:16 PM.
    Gary
    Flytyer - Where great flytying begins

  2. #12
    Join Date
    Mar 2007
    Location
    Stellenbosch and Kuils River, Western Cape
    Posts
    1,479

    Default

    Quote Originally Posted by GGY View Post
    Selling price for 7 or more from the China SUPPLIER (who *may* not be the actual MANUFACTURER) = USD35.00 = ZAR 350.00, before clearing costs+VAT (which may/may not be incurred by a private import, but will be incurred by any normal commercial import).

    Now do understand that the normal MARKUP in the industry (flyfishing and other) is often 100% (can be more or less depending upon industry). This is required to cover local overhead, inventory, financing & labour costs, as well as turn a profit.

    Thus the WHOLESALER is likely to sell this reel to the RETAILER at 100% markup = R700.

    The RETAILER also has to make a living and is often making the same 100% markup for the same reason as the WHOLESALER.

    Thus the RETAILER is likely to sell this reel to the CUSTOMER at 100% markup = R1400.

    This is how business works.

    Just because you *can* buy direct from the China SUPPLIER (who *may* not be the actual MANUFACTURER) does not mean that the local WHOLESALER/RETAILER is ripping anyone off, it is just how business works.

    NOTE - any wonder what the reel actually COSTS to manufacture in China?
    I am sure that the China SUPPLIER is making at least 100% markup themselves and they are probably getting it from the actual MANUFACTURER, thus:

    China SUPPLIER sells for R350 = China SUPPLIER cost from China MANUFACTURER (based on 100% markup)= R175.
    and thus
    China MANUFACTURER sells for R175 = China MANUFACTURER actual MANUFACTURING costs (direct material+machining+labour cost) (based on 100% markup)= ~R80.

    Everyone is making a profit on the reel manufacture (as do the suppliers of the raw materials used in the reel, the labourers who work for the manufacturer, the government supplying water/electricity used in production) etc.
    So in essence, its how business works. LOL

  3. #13
    Join Date
    Sep 2006
    Location
    None
    Posts
    10,233

    Default

    Just buy a Waterworks, very few copies of them
    Mario Geldenhuys
    Smallstream fanatic, plus I do some other things that I can't tell you about

    "All the tips or magical insights in the world can't replace devotion, dedication, commitment, and gumption - and there is not secret in that" - Glenn Brackett

  4. #14
    Join Date
    Nov 2006
    Location
    Western Cape
    Posts
    7,524

    Default

    Quote Originally Posted by shector View Post
    So in essence, its how business works. LOL
    Yes, its how business works. Its called "the supply chain", or "the value chain", or "Value added reselling"......its worked like this for centuries, so why not now.
    The problem with South Africans, is the "lobster syndrome"...... whenever one tries to rise above, and climb out... the others in the tank climb all over him and pull him down. I get peeved when anyone trying to make an honest living, gets accused of being a rippoff artist.
    Disclaimer.... none of my posts are intended to be "expert advice"..just opinions from someone who is willing to help where he can.

  5. #15
    Join Date
    Apr 2008
    Location
    Johannesburg, Paulshof
    Posts
    301

  6. #16
    Join Date
    Dec 2006
    Location
    Gauteng
    Posts
    1,306

    Default

    Quote Originally Posted by Pipe View Post
    Already shared the link in my first response above.
    Gary
    Flytyer - Where great flytying begins

  7. #17
    Join Date
    Oct 2007
    Location
    WP
    Posts
    1,468

    Default

    Quote Originally Posted by GGY View Post


    Thus the WHOLESALER is likely to sell this reel to the RETAILER at 100% markup = R700.

    The RETAILER also has to make a living and is often making the same 100% markup for the same reason as the WHOLESALER.

    Thus the RETAILER is likely to sell this reel to the CUSTOMER at 100% markup = R1400.
    except for the high end branded items (reels / footwear) step one goes from 350 (far east manufacture price) to 2535 (branded wholesale price) and then to 3900 + vat for retail.

    in the majority of industries the wholesaler/manufacturer makes more than the retailer.
    Regards
    Craig

  8. #18
    Join Date
    Oct 2007
    Location
    WP
    Posts
    1,468

    Default

    Having held the Koma and the Xplorer in hand there is a VAST difference between them. The photo's only show a superficial resemblance
    Regards
    Craig

  9. #19
    Join Date
    Dec 2006
    Location
    Gauteng
    Posts
    1,306

    Default

    Quote Originally Posted by ArcherFish View Post
    except for the high end branded items (reels / footwear) step one goes from 350 (far east manufacture price) to 2535 (branded wholesale price) and then to 3900 + vat for retail.
    I gave a simple example, since it ignores shipping/clearing costs, as well as duties (footwear & clothing = 40% as I recall) so landed, cleared cost could very well be a lot higher than 350.

    Quote Originally Posted by ArcherFish View Post
    in the majority of industries the wholesaler/manufacturer makes more than the retailer.
    Craig is right here about the majority.

    BUSINESS.
    Gary
    Flytyer - Where great flytying begins

  10. #20
    Join Date
    Sep 2006
    Location
    None
    Posts
    10,233

    Default

    Quote Originally Posted by Pipe View Post
    Quote Originally Posted by GGY View Post
    Already shared the link in my first response above.
    Read page 1 ....
    Mario Geldenhuys
    Smallstream fanatic, plus I do some other things that I can't tell you about

    "All the tips or magical insights in the world can't replace devotion, dedication, commitment, and gumption - and there is not secret in that" - Glenn Brackett

Page 2 of 4 FirstFirst 1 2 3 4 LastLast

Members who have read this thread: 0

There are no members to list at the moment.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •