Agassi with Donnay?!?!?

R

RollTrackTake

Professional
BreakPoint said:
I can GUARANTEE you that Nike does not make a profit of $50 per shoe. The retail mark-up is well over 2X the wholesale price. That's how retailers can put things on sale for 50% off and still make a profit.

Don't forget all the development, engineering, transportation, marketing, sales, advertising, and overhead costs that need to be included into the cost of a pair of shoes. The cost of materials for a shoe may be $7, but add in labor costs, equipment costs, factory overhead, and profit for the factory that Nike contracts to make the shoes. Add in all of these costs and I'd be surprised if Nike makes more than $15 in profit on a pair of shoes after accounting for returns, seconds, discounting after season, etc.

Besides, it's not like nobody would buy Nike shoes if Agassi didn't wear them. So you have to estimate only the INCREMENTAL sales that would not have occurred without Agassi. Was it an incremental $100 million in profits (not sales)? I doubt it.
Click to expand...

Nike makes a hefty profit on shoe sales. It is their cash cow. When kids buy Jordan's, Kobe's, Ballistics etc.. I can safely say they earn more than $15/shoe. My brother works in the corporate office for a major athletic apparel company that includes shoes. The money the can make off shoe sales is why addidas can give Derrick rose $250 mil. And the cost of manufacturing a pair of nikes, factory+labor is no more than $20 best case scenario. When phil knight + Nike were busted for running sweat shops in Taiwan the cost of each shoes with labor attached was half. Basketball sneakers alone do $2 Bil in sales annually. I'm sure tennis doesn't do as well but even a slight fraction of that is a nice profit. And if u think shoe companies spend more than 5% of their budget on R&D then can I interest you in some moon rock I want to infuse into the next line of tennis racquets?
 
ChicagoJack

ChicagoJack

Hall of Fame
SFrazeur said:
Seeing as **** was Agassi's racquet customizer and **** has strong involvement with Donnay I do not see it as surprising Agassi would test a Donnay frame out at some point.

-SF
Click to expand...

Ha, you beat me to it. Not surprising at all. Roman and Agassi go back a long way.

Jack
 
BreakPoint

BreakPoint

Bionic Poster
RollTrackTake said:
Nike makes a hefty profit on shoe sales. It is their cash cow. When kids buy Jordan's, Kobe's, Ballistics etc.. I can safely say they earn more than $15/shoe. My brother works in the corporate office for a major athletic apparel company that includes shoes. The money the can make off shoe sales is why addidas can give Derrick rose $250 mil. And the cost of manufacturing a pair of nikes, factory+labor is no more than $20 best case scenario. When phil knight + Nike were busted for running sweat shops in Taiwan the cost of each shoes with labor attached was half. Basketball sneakers alone do $2 Bil in sales annually. I'm sure tennis doesn't do as well but even a slight fraction of that is a nice profit. And if u think shoe companies spend more than 5% of their budget on R&D then can I interest you in some moon rock I want to infuse into the next line of tennis racquets?
Click to expand...
The fact that shoe companies pay athletes contracts like $250 million or $100 million is exactly why they can only make a profit of $15 or less per pair of shoes. Those salaries are included in marketing costs, which are deducted before net profits. The question is, did Nike make more net profits after paying Agassi $100 million or would they have made more net profits from their tennis business if they hadn't paid Agassi $100 million? What was the net incremental profit after paying Agassi?
 
B

big ted

Legend
i dont even think nike thought of agassi as a profit deal but more of as an advertisement deal. he was always on tv and in the magazines wearing nike clothing and shoes - exposure. even if people didnt buy his crazy neon clothes and shoes he got the brand out there
 
C

classic tennis

Semi-Pro
SFrazeur said:
I was told it was a 30 year license by someone who had some business negotiations with one of the owners. The actual realities of the license is unknown to any of us here.
Click to expand...

Every single other SD licence around the world is one plus two renewable, and you honestly think Ashley and Forsey signed thirty years to these blokes? hell the brand is for sale at the right price.

If your mate thinks this is the case I have a bridge he may be interested in.
 
S

SFrazeur

Legend
classic tennis said:
Every single other SD licence around the world is one plus two renewable, and you honestly think Ashley and Forsey signed thirty years to these blokes? hell the brand is for sale at the right price.

If your mate thinks this is the case I have a bridge he may be interested in.
Click to expand...

No reason to be insulting to anyone. I am simply telling what I was told. I don't personally give a damn about Donnay.

-SF
 
F

floydcouncil

Professional
BreakPoint said:
I can GUARANTEE you that Nike does not make a profit of $50 per shoe. The retail mark-up is well over 2X the wholesale price. That's how retailers can put things on sale for 50% off and still make a profit.

Don't forget all the development, engineering, transportation, marketing, sales, advertising, and overhead costs that need to be included into the cost of a pair of shoes. The cost of materials for a shoe may be $7, but add in labor costs, equipment costs, factory overhead, and profit for the factory that Nike contracts to make the shoes. Add in all of these costs and I'd be surprised if Nike makes more than $15 in profit on a pair of shoes after accounting for returns, seconds, discounting after season, etc.

Besides, it's not like nobody would buy Nike shoes if Agassi didn't wear them. So you have to estimate only the INCREMENTAL sales that would not have occurred without Agassi. Was it an incremental $100 million in profits (not sales)? I doubt it.
Click to expand...

Totally INCORRECT. Retail $ is actually NOT 2x wholesale for tennis shoes. Wholesale is approximately 52-54% of retail. (I'm using the price I saw for Vapor 9 shoes.)

I was lucky to have seen the wholesale prices on nike.net, the retailers' ordering platform.
 
Last edited:
S

slice 'n dice

New User
Dave M said:
Interesting, haven't seen anyone commenting who is in "the know" on here about it before either.
Click to expand...

Then it can't be true, cuz any racquet company that signs agassi is gonna make a big deal out of it. Probably somebody painted his Head racquet to look like a donnay?
 
BreakPoint

BreakPoint

Bionic Poster
floydcouncil said:
Totally INCORRECT. Retail $ is actually NOT 2x wholesale for tennis shoes. Wholesale is approximately 52-54% of retail. (I'm using the price I saw for Vapor 9 shoes.)

I was lucky to have seen the wholesale prices on nike.net, the retailers' ordering platform.
Click to expand...
If you think large retailers pay full wholesale price then I have a bridge in Brooklyn I can sell you. ;-)

And even if they overpay and pay 50% of retail, that means the retail price is still 2X the wholesale price.

Oh, and I also hope you don't really believe that car dealers actually pay the "invoice price", do you? :shock:
 
M

Miami Tiburon

Semi-Pro
classic tennis said:
The company that has the US licence to slap a name on Chinese made tennis racquet's and call them Donnay for a fee to UK owned superstore Sports Direct has zero to do with the Belgian Donnay and past glories, players, etc....again...for the 50th time.
Click to expand...
Most Racquets are Mfg in China so why would Donnay be any different
 
paulorenzo

paulorenzo

Hall of Fame
i like the new donnays, regardless if they are made in china or belgium. good feeling sticks, the dampened response of a prostaff with a prestige feel, thin beamed. if only they were priced like dunlops
 
Vlad_C

Vlad_C

Semi-Pro
BreakPoint said:
Don't forget all the development, engineering, transportation, marketing, sales, advertising, and overhead costs that need to be included into the cost of a pair of shoes. The cost of materials for a shoe may be $7, but add in labor costs, equipment costs, factory overhead, and profit for the factory that Nike contracts to make the shoes. Add in all of these costs and I'd be surprised if Nike makes more than $15 in profit on a pair of shoes after accounting for returns, seconds, discounting after season, etc.
Click to expand...

ints0p.jpg


There's like $2.50 worth of cheap plastic and foam in that shoe. Local retail price: $129.98
Hearing how Nike only makes $15/ pair of shoes breaks my heart. Pretty soon I will start a charity for them.
 
F

floydcouncil

Professional
BreakPoint said:
If you think large retailers pay full wholesale price then I have a bridge in Brooklyn I can sell you. ;-)

And even if they overpay and pay 50% of retail, that means the retail price is still 2X the wholesale price.

Oh, and I also hope you don't really believe that car dealers actually pay the "invoice price", do you? :shock:
Click to expand...

We are not talking about cars here.

Do you know what the wholesale price of a Vapor 9 is?

If you don't.. Shut up!!
 
M

Miami Tiburon

Semi-Pro
classic tennis said:
They are not Donnay!...they are two Korean blokes who Licence the name, from the British owners who sell Donnay socks and underwear....
Click to expand...
It's a licensee agreement I understand how it works but still Agassi is using
the Donnay frame . Its just surprising to me I thought Agassi was still with
Head .
 
BreakPoint

BreakPoint

Bionic Poster
classic tennis said:
They are not Donnay!...they are two Korean blokes who Licence the name, from the British owners who sell Donnay socks and underwear....
Click to expand...
We're not talking about the company. We're talking about the racquet. The racquet is a "Donnay" because it's branded as a "Donnay". That is the name of the brand.
 
S

Setmatch45

Rookie
For the guy's who really know the pro's racquets. Did Andre ever leave Donnay? I have heard that he was using a Donnay racquet with the proper head paint job.
 
vsbabolat

vsbabolat

G.O.A.T.
Setmatch45 said:
For the guy's who really know the pro's racquets. Did Andre ever leave Donnay? I have heard that he was using a Donnay racquet with the proper head paint job.
Click to expand...

Yes, Andre really did leave Donnay and switched to HEAD. While with HEAD He used the Radical Tour (Trisys) 260 Oversize with a variety of paint jobs over the years.
 
Rabbit

Rabbit

G.O.A.T.
Setmatch45 said:
For the guy's who really know the pro's racquets. Did Andre ever leave Donnay? I have heard that he was using a Donnay racquet with the proper head paint job.
Click to expand...

There was a time when Agassi first signed with Donnay that he was dissatisfied with the frame they built him. For a time, Agassi was even playing with the Prince Original Graphite with a big "D" stenciled on it. The folks at Donnay were aghast. It seems Agassi never told them he didn't like the frame. The frame was fixed.

Then there was Agassi's foray into the widebody world. He played the 1st round at the French with a new Donnay widebody frame. Things didn't go too well with the frame and there were none of Agassi's old frames around. Agassi wound up winning the match and breaking every one of the new widebody frames after the match on court.

His old frames were overnighted to the tournament. :)
 
F

FabulousDD

New User
Terrific: Andre crushing Roddick with...an Aeropro from Babolat!

Hi! I'm back on track, it's been a while.

I don't know if he'll eventually chose donnay because he looks so efficient and powerful with the Babolat Aeroprodrive! It seems that Andre is still testing racquets...

http://www.youtube.com/watch?v=9sgfKnFETZc

(go to 4"30! He's so powerful!)
 
S

scotus

G.O.A.T.
big ted said:
i like their 'spin' article that roddick and clijsters basically retired due to shoulder injuries because they didnt use a donnay racquet
Click to expand...

I have suffered from TE before, so I tried a couple of the first generation Donnay Xenecore racquets when they came out.

From the first swing, I could feel the shock and vibration travel up my arm.

Needless to say, I stopped the demo process in less than 3 minutes and never looked back.
 
R

Roforot

Hall of Fame
There's some salesmanship going on their website, but it's probably no more than any other company. Some companies boast power or spin and other like ProKennex tout arm safety.

It is kind of sleazy though the way they mention Clijister and Roddick even though they acknowledge injuries weren't a cause for their retirement. Would I blame Donnay when James Blake retires?
 
BauerAlmeida

BauerAlmeida

Hall of Fame
BreakPoint said:
I can GUARANTEE you that Nike does not make a profit of $50 per shoe. The retail mark-up is well over 2X the wholesale price. That's how retailers can put things on sale for 50% off and still make a profit.

Don't forget all the development, engineering, transportation, marketing, sales, advertising, and overhead costs that need to be included into the cost of a pair of shoes. The cost of materials for a shoe may be $7, but add in labor costs, equipment costs, factory overhead, and profit for the factory that Nike contracts to make the shoes. Add in all of these costs and I'd be surprised if Nike makes more than $15 in profit on a pair of shoes after accounting for returns, seconds, discounting after season, etc.

Besides, it's not like nobody would buy Nike shoes if Agassi didn't wear them. So you have to estimate only the INCREMENTAL sales that would not have occurred without Agassi. Was it an incremental $100 million in profits (not sales)? I doubt it.
Click to expand...

Obviously they study all this stuff before offering a contract to somebody. If they pay someone a certain amount of money, it's because he generates it.
 
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