I have noticed that some racquet companies like Prince and Wilson racquets are often deeply discounted a year or so after they are introduced and because of this, one can get a pretty good frame at a fraction of the cost simply by buying frames that are a few years old. Not true with companies like Babolat, Yonex and Pro Kennex. Their frames, even the 3 or 4 year old models seem to be the same price as they were when new. Does anyone know the reason for this? I would think that Kennex would be doing whatever necessary to get their racquets into player's hands.
Racquet pricing
- Thread starter drop shot
- Start date
matchmaker
Hall of Fame
As soon as a racquet is discontinued but there is still a large stock of it left you will see discounts on it. But some racquets that are never really discontinued will therefore never have big discounts.
I have seen some 1rst generation Babolats costing a bit less now but it is true that in general you don't see them in liquidation.
I have seen some 1rst generation Babolats costing a bit less now but it is true that in general you don't see them in liquidation.
fuzz nation
G.O.A.T.
Apples and oranges there. The companies that keep churning out "newer and better" models put the higher price tags on their most recent over hyped technology which some folks are willing to pay for. ProKennex has a bit of a corner on the market with their patents and there's a pretty consistent demand for their Kinetic/Ionic frames; they don't have to reinvent them every year for people to keep buying them. Since their Redondos are solid true player's frames, there will be more of a slow-and-steady demand for those, too, but not among the weekend warrior/club crowd that likes to have fresh gear every year or two.
Honestly, I really don't know how long Prince, Head, and Wilson can go on reinventing the wheel almost every year, but they're making a living at it, right? Different companies obviously have different approaches with marketing - if you get a chance to talk with someone who works in the industry, they can probably give you a bit of an education on the whole grind that it takes to get a piece of the action. Aside from the brand new frames, I'm pretty sure that the sellers are still making some money on the clearance gear, but it just doesn't have the buzz around it that boosts the profit margin.
Honestly, I really don't know how long Prince, Head, and Wilson can go on reinventing the wheel almost every year, but they're making a living at it, right? Different companies obviously have different approaches with marketing - if you get a chance to talk with someone who works in the industry, they can probably give you a bit of an education on the whole grind that it takes to get a piece of the action. Aside from the brand new frames, I'm pretty sure that the sellers are still making some money on the clearance gear, but it just doesn't have the buzz around it that boosts the profit margin.
matchmaker
Hall of Fame
I talked to a former racquet company rep who told me that basically almost all the racquets are made in China and if they were sold for what they were worth or what the company actually had in them they would be about $5.00- $10.00 each before factoring in R&D, marketing etc. Some companies such as Babolat have a minimum price thing going on known as vertical price fixing that keeps retailers from selling their racquets below a certain cost, meaning that there is a several hundred percent markup. This is done he said to create a sense of worth. The example that he used is that his wife bought a big name brand $700.00 purse and she had one at home already that was equal to or superior in quality but a lot of people feel like they are getting better quality if they spend more money which may or may not always be the case. He said that some people like to have the more expensive name brand high dollar items simply for the "Hey, look at me" factor That's why you can find a Wilson or Prince racquet in the 40-50 dollar price range that sold for $150.00 just a few years ago. He said that if people knew how much their racquets were really worth as opposed to what they paid for them they would not be happy. That being said, I do think that it's an interesting topic and I appreciate all the responses so far.
logansc
Professional
Well to be fair, the racquet is worth whatever someone is willing to pay for it. If people are paying 200 dollars for a new frame and buying multiple, then they are worth that much to that person. Also from their perspective, many rec players buy 1 racquet and play with that one racquet for a year or two, so its not financially viable for them to charge less. Using the ABC inventory management theory, your A run covers your costs, while your B and C runs (usually the discounted frames) to make money or to cover some extra cost on the back end. This is usually done on the retail end and not from the manufacturer who sells to the retailer at wholesale prices.
agree
I agree that an item is worth what people are willing to pay for it which is all well and good except for when it comes to something like medication that can cost over $300.00 for 30 pills and the consumer has to choose between paying the power bill or getting their meds. I was reminded of a post from a few years back where a guy was questioning the $200.00 price tag of a racquet that was worth much less. I guess it's the same with automobiles or any other consumer good.
I agree that an item is worth what people are willing to pay for it which is all well and good except for when it comes to something like medication that can cost over $300.00 for 30 pills and the consumer has to choose between paying the power bill or getting their meds. I was reminded of a post from a few years back where a guy was questioning the $200.00 price tag of a racquet that was worth much less. I guess it's the same with automobiles or any other consumer good.
logansc
Professional
But I also think that as a consumer I or anyone else can affect the demand of a racquet by not going on a new racquet buying binge and try to get frames used or at discounted prices. Out of principle I won't go buy $200 sticks brand new off the shelf because IMO they aren't worth $200 to me. I know that eventually when the demand drops for these racquets, they will be discontinued and I will be able to get them for a more reasonable price. Then there are companies like Dunlop who are trying to develop the US market and selling great sticks brand new @ $140, $150, which, for me, is much more reasonable esp considering after the frame is purchased, I then have to purchase string.
