PATAGONIA SHORTS : Music companies just got their hats handed to them in courtover this very issue. It's quite possible that climbingequipment companies may have to start adjusting theirpolicies. Artificially propping up the price in the US (ashas been done for years in climbing equipment) is ananti-competitive practice.If someone like MEC or Barrabes were to take themanufacturers to court, they would probably win. Problem is,it's expensive to do that.Think about this and then keep on with your sob story of getting ripped off.On the whole, you're looking at around a 35 to 40% mark up for a qualityproduct that has to pass "standards" tests, that required intensive R&D,marketing, overhead, processes, labor, distribution channels (no hugewarehouse with lots of 18 wheelers - lots of small parcel shipments - lotsmore cost), computer infrastructure, etc. compated to a $50 pair ofPatagonia shorts (cost to make less than $5 bucks) or a $400 gore tex jacket(cost to make under $150 bucks - maybe even $100), or a $15 shirt at Walmart(cost to make under a buck). You tell me who's ripping who off....?
PATAGONIA SHORTS : Hey, Mike. SHUT UP and start concentrating on building that plane! Isn'tthat what you're getting paid to do, ya slack-ass?What an insightful comment. Perhaps you should share it withthe music industry. Maybe they will take back the $143million settlement they just agreed to pay out for doing theexact same thing.Perhaps you missed the class on "anti-competitivepractices". Or maybe you just took the Microsoft version ofthe course. Manufacturers can set "suggested" retail pricesall they want, but using their control of the supply chainto enforce those suggested prices is a "vertical restraintof trade".Mike's post has nothing to do with the price that the manufacturers charge and everything to do with artificial supports for price coming from dealer policies. While you do a great job arguing for high prices in general, you give no support for anti-competitive behavior on the part of the dealers/manufacturers. I award you no points, and may god have mercy on your soul (-Sandler).did you include liability insurance in yr calculations? Im not sure.....is that a factor?
PATAGONIA SHORTS : Here is some of your competition, which I already know works well frompast experience and other people's stories: -- just a short drive from where I am, and it is fun tovisit Toronto anyways. -- a lot of expensive gear will appear on sale hereat some time during the year, if you are patient and watch. -- somehow they manage to sell current gearat discounted prices. I just picked up a Mountain Hardwear 2nddimension sleeping bag for $126 (retail: $180).All of these stores do same day shipping, and have fast shippingoptions. They are also all significantly cheaper than US retail. Howcan you beat them?Okay willo...I'll just pile on here with the rest. You mentioned you'd onlycarry a limited line of items like cams and webbing and leave the otherstuff alone. What makes you think that next time I order gear I'm going tobuy the harness and shoes from one place, but come to you for 'biners andslinkies? Once I'm logged-on you're going to have to save me some seriouscoin to not go ahead and buy enough nylon for a cordalette from them. The"other" online stores have the whole thing: helmets, ice gear, tights, andwhathaveyou. As someone said earlier, how will you distinguish yourself?What will be my compelling reason to buy from you? Another thing you mightdo is turn it around on yourself and ask your approach will truly satisfyyou?
PATAGONIA SHORTS : Does there seem to be something lacking in this analysis? This seems to assume that Lotus has no costs for: materials facilities development interest on loans distribution advertising insurance taxes etc.I very seriously doubt that the seamstresses make $57k/a. I'd put itmore in the range of $25k, which for that part of the US is a fairlygood wage.No such assumption was made.It was a quick&dirty analysis of REVENUE per seamstress.Not net income per seamstress. Not salary per seamstress.Of course, I would expect revenue/seamstress to constitutean upper bound on salary/seamstress. :)(This is old news...4/16...I've been out of town so haven't posted. Gordy) Patagonia acqiored all stock of Lotus Designs effective 4/16/99 andmerged it's (Patagonia's) paddlesport line with Lotus. Effective Spring2000, Patagonia paddling products will be sold under the Lotus label. Bob Holding, who has run Patagonia's paddling business out ofCalifornia for the last two years will be General Manager of LotusDesigns. We've seen major consolidations and acquisitions in the paddlesportindustry and as the industry grows and capital seeks investments, we'llsee more. So far (from inside the industry) it doesn't seem to be a badthing for paddlers or dealers.
PATAGONIA SHORTS : Guess that means the prices will be going up to the "Patagonia" range?!I really hope it works out well, for all concerned. It's so counter tothe usual trend in business for a large, well-known company to purchasea small specialty company to get access to its distribution channel, butnot at all unusual to do so in order to tap into a customer base or totake advantage of a respected name. Now the ball is in Patagonia's courtto see that that name continues to be respected. I'd be lying if I saidI don't find it troubling. On the one hand, Patagonia has made some decent stuff in the past. On the other hand, they also lean heavily towardsthe fashion-show side of the outdoor clothing/gear market. I have yetto see that happen and not result in compromises, as design decisions come to be based in some measure on looks or fashion sense rather thansimply on quality, functionality, and safety. Smart money says thatPatagonia won't be the first exception to that rule. I own a Lotus andlove it, and previously would have seen no reason to ever buy anotherbrand...but the second they go the Patagucci route OR ship their manufacturing overseas, I'm looking for another brand.
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