Discussion in 'Fly Fishing Forum' started by Alosa, Aug 6, 2013.
This is exactly what Sage did!
Just to keep this thread going, and not to disparage Sage too much since I own a few of their rods and reels, I'm curious how Sage's business model is legal. I mean, how is it different from price fixing? Sage sets the retail price, and no dealer may sell for any different price.
I thought all good American businessmen are capitalists. And one of the leading attributes of capitalism is competition, and may the better man, or company, win. Price fixing is anti-capitalist, or at least it seems that way to me.
And, not saying that they do, but if Sage, Loomis, Winston, T & T conspired to fix prices on high end rods, that sort of price fixing would violate the Sherman Anti-Trust Act. Not that it matters since the government appears to allow that all the time any more.
And to Kent's earlier point about a $1,300 Sage rod, really, that's gotta' be all about product placement, image, or whatever, with next to nothing to do with the costs of manufacture, distribution, and sales. I recall what one industry insider told me when I bought my first Sage rod at a healthy discount that was legitimate at the time. The rod retailed for $315. I paid a total of $129 for the rod, sales tax, and shipping to my door, . . . and was told that both Sage and the shop made money on the transaction. If true, and I have no reason to think it isn't, then I'm left to believe that the value of a fly rod, plastic ones at least, is in perception, the eye of the beholder.
So if anyone wants to complain about something, maybe the appropriate target is price fixing by Sage?
They cant legally tell them what to sell the rod for, but they can tell them what the MSRP is and that is the only price they can Advertise. Otherwise I believe it is just saying if you sell at below my MSRP then we will drop you, you still have a choice.
MAP pricing isn't fixing. Logical on some levels to see it that way, but in my view it's more about leveling the competitive landscape amongst the dealers than protecting margin for Sage. It isn't sage and another manufacturer colluding to make sure that no consumer can get any premium rod for less than what they want. It's Sage making sure that a big-box like Cabela's can't destroy a boutique shop via the advantage of low-margin/high volume, and undercut the price to the point that other dealers can't compete. Thus the fuss with Costco, which does just that.
In my opinion and my opinion only. I feel that fly shops in general would do much better if they geared a lot more of there rod, and reel inventory to novice anglers. Shops like Cabelas, Basspro, and other big name stores will always hurt small fly shops because they offer more options for novice anglers. Even a 300 hundred dollar outfit scares the shit out of a new guy, and especially his wife. If I ever owned my own fly shop I would stock much more affordable gear, that appeals to a much wider customer base.
IMO That won't keep you in business. And I say that because a majority of novice anglers don't understand the difference between a BPS and a local fly shop.
I work in a shop in Arizona and I will tell you that your statement was my belief when I started and as I have gained experience in the industry I no longer feel that way. Now maybe that is just the Arizona market, but I can't get novice anglers in my shop to buy the inexpensive, made over seas, Redington outfits. Even those cant compete with Bass Pros white river series or Cabelas prestige series. So my shop thrives selling high end gear, because that is what has kept us open for the past 10 years in a Desert!
Just curious, if a manufacturer offered two prices, one with warranty and one without and an obvious price point difference, how would you spend?
Oh yeah, what Costco is still housing those inexpensive sage rods??
There could be a lot of reasons why your not getting the novice's in your shop. Are you by any chance implementing a good marketing strategy?
I am happy to have Anil as my local fly shop. He has given me excellent council on all kinds of stuff. Anytime I get christmass, father's day or birthday money I take it to Puget Sound Fly Shop and come out with items that I have fun with. Anil helps me match my fishing gear to my fishing needs. Always satisfied. Support your local fly shop. Better to pay more and get what you want need. Don't go cheap on recreational gear.
I am not 100% sure but I doubt Sage is making 60 - 70 % margins on their rods.
Unilateral Policy is why it's legal for them and thousands of other companies.
If only you knew.
Your missing a couple of zeros...
Well, please explain.