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Do New Pricing Points + Global Recession = Rebates in 2009?

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I suspect that most of the manufacturers who increased their prices for 2009 set their strategies a year ago when the economy was [apparently] at its peak and commodity prices were sky rocketing.  The sudden drop in commodity prices and the rapid decline of the economy are unprecedented.

I suspect that many fishing consumers will have difficulty justifying rod & reel purchases of over $100, especially when there is a $20 or $30 price in over last year.

This Spring, do you think the fishing gear manufacturers will offer more rebates to entice consumers?

OBSERVATION:  Late last year Powell actually dropped prices instead of raising them.  Without counting posts, it seems as though Powell has gotten more recommendations since their prices were cut.  Do you think that strategy will prove to be a marketing success in this recessionary economy?  

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I know that All Star dropped their prices by $20 on the TAS line and $30 for the Platinum series rods.  Sooth sayers or just trying to get a bigger market footprint?  

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I suspect that many fishing consumers will have difficulty justifying rod & reel purchases of over $100, especially when there is a $20 or $30 price in over last year.

OBSERVATION: Late last year Powell actually dropped prices instead of raising them. Without counting posts, it seems as though Powell has gotten more recommendations since their prices were cut. Do you think that strategy will prove to be a marketing success in this recessionary economy?

#1.  I have only one reel that cost under $100 and that's my 4 pound ultralite reel. I don't have to justify anything!  It's my money, the bills are paid and I love to fish so I buy what I want when I want if I have the cash.

#2.  I'm not going to downgrade to another rod or reel just because they go on sale.  I'll either make do with what I have or save the money to get what I want .  

#3.  Do you use Charmin to wipe your ars or the cheap sanpaper type that is half the price.  

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Well, your premise regarding pricing points is inaccurate, many

people wouldn't consider a rod or reel under $100. "Mid-range"

seems to be either side of $150, rod or reel. It's no coincidence

that retailers target this same price point ($150) for "up-graded"

entry level combinations.  

Regarding pricing in general, I do expect significant price discounts

due to weak demand throughout the economy. It seems in most

sectors, everything is on sale and this will apply to fishing equipment,

too.

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The fishing companies are no dopes, they know the bait monkey doesn't care whether it's a recession or not. Raising the price by a small amount on high end gear won't effect its sales, imo. Now keeping the entry level stuff low is important to catch those that wouldnt buy otherwise. Face it, new and cool fishing tackle and gear is an inelastic product for us mooks.

Besides with commodity prices dropping the direct competition for my cash is more than 50% discounted.  Do you know how much tackle and gear those savings equal? :)

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I suspect that many fishing consumers will have difficulty justifying rod & reel purchases of over $100, especially when there is a $20 or $30 price in over last year.

OBSERVATION: Late last year Powell actually dropped prices instead of raising them. Without counting posts, it seems as though Powell has gotten more recommendations since their prices were cut. Do you think that strategy will prove to be a marketing success in this recessionary economy?

#1. I have only one reel that cost under $100 and that's my 4 pound ultralite reel. I don't have to justify anything! It's my money, the bills are paid and I love to fish so I buy what I want when I want if I have the cash.

#2. I'm not going to downgrade to another rod or reel just because they go on sale. I'll either make do with what I have or save the money to get what I want .

#3. Do you use Charmin to wipe your ars or the cheap sanpaper type that is half the price.

Good for you...

A lot of people have to watch their money.  I think that was the point of the OP.

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Short anwer: I wouldn't hold your breath for significant sales, rebates, etc.  

Long answer: If I recall, retailers have been severely hammered by reduced holiday sales for the last three to four years in a row.  Also, the most recent tax rebate last summer had almost NO effect on the economy since most people were paying off debt or using it to make the monthly bills.  The sheer number of layoffs and foreclosures is staggering to anyone watching the news.  I would also imagine that annually increasing internet sales have all but doomed the large retail stores within the next 5-10 years.  People simply haven't been letting go of their money for luxury/recreational items since before last summer.  I think retailers had a lot of economic indicators to anticipate a rough time ahead and were prepared this year and simply didn't order as much product as in the past.  We'll have to wait and see what the short term effect of the pending "economic stimulus package will be after the Obama inauguration.  I expected there to be tons of after-Christmas discounts and there hasn't been much of anything.  I think it might be mid-spring before the effect of the economy will be shown in the outdoor retail market.

Davo  

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Thanks for the insights. As an analyst, I found this to be an interesting topic.

And for the record :) I hope I am always clear that I am a "Wannabe." With only 2 or 3 hours a week during the summer available for fishing I cannot claim to be an Avid or Expert fisherman. However, I do hope I can add value from the perspective of a casual fisherman. :)

Regarding:

#3. Do you use Charmin to wipe your ars or the cheap sanpaper type that is half the price.

Yes, we only use Charmin or the equivalent. But, we buy in bulk at the warehouse and almost always use a coupon :)

Regarding priorities, they are different for everyone and change over time. Mine changed quickly once I got married and had children. Before I was married, I was hooked on audio/video equipment and upgrading more than once a year. My last sub-woofer was 1000 watts RMS, 4 feet tall and is flat down to 16 hz. Plus, I had bass shakers in the couches. Now, I find that just plain riduculous. ;D However, I still won't get rid of it :)

Now, I find the difference between a Crucial and a GLX to be 3 months of gymnastics for my daughter. For ME the priority is easy to identify. On the other hand, because I'm passionate about fishing, if I only have $100 or $150 to spend, I want to make sure I get the best value I can.

As to the recession, I'm hoping that the innovative entreprenuers have strategies that will allow them to continue offering superior product and values to fisherman. (and to also continue sponsoring BR :))

Wow! I type too much.

Leon

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At the request of my wife, I tend to watch the outdoor dollars a lot more than I use to.

She is the one still working so she has the first choice, second choice, and any rebuttal options on the table. I only spend what she allows(500.00 max. monthly for tackle and entry fees). Makes it so much nicer around the house.

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Quote/question fro bassnblvd:

Do you use Charmin to wipe your ars or the cheap sanpaper type that is half the price.

If you must know; I sit backwards on the bowl and use the bidet, I find it so much more refreshing

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$500/ month seems like quite a lot for a guy who already has everything!

8-)

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$500/ month seems like quite a lot for a guy who already has everything!

8-)

I wish...

Believe me I don't spend that every month. That's the point when she starts bringing down the hammer.

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$500 only equals about 2 tournaments worth of spending, and that's on a local level.

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You won't see any rebates from Shimano this year or next. So far the new Curado & Citicas are a hit & I don't think Shimano is hurting in sales of these reels as compared to the D series. Funny thing about the D series Curados is those reels are holding a pretty good value on ebay & other sale sites. Same goes w/ the B series Curados, I'm surprised those are selling for over $50 in used condition.

There are some mfg's that have rebates, Abu Garcia has rebates fpr their round reel & a free pair of Wiley X sunglasses w/ a Revo purchase of over $160. But that's on BPS not Cabelas, so it might be a deal w/ BPS.  Sufix has a rebate offer on their braided line.

I remember Quantum had a rebate offer for their reels in 2007 & carried over to 2008. It was only a year of the sales of those new reels that Quantum realized that sales were slow so they offered the rebates in 2007 & 2008. Like Shimano, Quantum totally redid their lineup of reels & are now lower in weight & sleeker looking. People complained when the D series Curados came out that they were priced too high compared & heavier than the B series, where people had no problems of paying $130-150 for the B series Curados & those were considered all around reels w/ quite a few gear ratio options. The $50 jump to the D series shocked alot of anglers, so to get those anglers back to buying Shimano, Shimano had to redesign & drop the price a bit. Shimano did a great thing. Daiwa on the other hand, their reels stayed put in prices & performance. I think where Shimano is trying to make back the slight loss of money from Curado E sales are in the spinning reels in the Symetre/Sahara/Sedona/Spirex. Those spinning reels have gone up $10-20 w/ new improvements, but now you don't get a spare spool.

If there is a chance to see rebates from Shimano or Quantum, it won't be till next year, if the sales of the reels this year falters. I think Abu Garcia are giving rebates & sunglasses to keep buyers via BPS that Shimano & Quantum are offereing. Daiwa has little to offer in new reels for 2009, But prices have gone up.  I won't be surprised if in 2010 new designs will be offered by Daiwa.

If I'm wrong w/ anything I said, I apologize; this is just my opinion.

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$500 only equals about 2 tournaments worth of spending, and that's on a local level.

Yep, and you have to space them out to cover them. If she included gas and all the other expenses I would only be fishing a 50.00 entry jackpot every other month. It just cost a lot of money to get away and have a little fun.

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I know that All Star dropped their prices by $20 on the TAS line and $30 for the Platinum series rods. Sooth sayers or just trying to get a bigger market footprint?

I have not seen a price reduction on the All Star Platinum rods. Where did you see this ?

      T

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I think the new AllStar prices are listed in the Cabela's catalogue.  In my price range :) that puts AllStar in a more competitive position.

Since Purefishing seems to have a lot of marketing expertise & emphasis, I wonder if their product lines will have more rebates and discounts than firms with a greater focus on product innovation.  Not a knock on Purefishing  :)

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Yea new prices are online and instore at Cabelas , a reduction for a change 8-)

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Do you use Charmin to wipe your ars or the cheap sanpaper type that is half the price?

Well Yaaa,

245 more rolls and Im going to buy my 3rd Loomis  ;D Aint life great :)

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