new abu reel

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mark poulson
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new abu reel

Post by mark poulson » Wed Feb 27, 2013 5:22 pm

Cal,
Can you tell me how many reels a company like Abu needs to sell to cover their research and manuf. costs and turn a profit?

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Re: new abu reel

Post by dragon1 » Wed Feb 27, 2013 5:26 pm

Mr. Owl is still working on "how many licks" for that Tootsie Roll Tootsie Pop...

The World may never know....

To add, OEM (Revos) investment recovery rates and ROI; are likely much faster and higher, than on a product truly born from mind to paper to creation - like say the current Swedish made Morrums.

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Re: new abu reel

Post by mark poulson » Wed Feb 27, 2013 8:35 pm

I don't understand what you just said.

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Re: new abu reel

Post by DE_Bass_Enthusiast » Wed Feb 27, 2013 9:08 pm

mark poulson wrote:I don't understand what you just said.
:lol: :-({|=

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Re: new abu reel

Post by e_bassfisher » Thu Feb 28, 2013 4:35 am

mark poulson wrote:I don't understand what you just said.
basically, the revo's design are re-hashed pinnacle, pflueger, bps, cabelas, ect reel design...i can lay out 3 different reels, a revo, BPS reel, and a pflueger trion, with the side plates off and it would be difficult to distinguish one from the other. using this same old desing would obviously would cut down one's cost of production. this coming from a great company like Abu, is sad really. not that they aren't good reels, they are fine, just sad that a one time great leader in innovation chose $ over creativity and innovation....

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Re: new abu reel

Post by runmax08 » Thu Feb 28, 2013 5:04 am

I agree with the above statements..........However ABU products seemed to be holding their own.........when comparing them to Daiwa's and Shimano's mid range product line. I happen to own all three and have been very impressed with all three. We will never know the truth about the ABU REVO line other than its been very successful. I've been fortunate to visit some of those far east tackle shops and its unbelievable what they have to sell. To me, its more like Samsung versus Apple. (high price versus moderate price)

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Re: new abu reel

Post by mark poulson » Thu Feb 28, 2013 5:34 am

I was just wondering how a reel company could come out with a reel that sells for $500, which means it has a very limited customer base, and still justify all the production costs.
It seems to my they'd have to sell some thing like 10,000 units to make back their initial investment and start to turn a profit on it. Otherwise, they would cost more to produce than they sell for, if you include all the markups along the way. They have to cost at least $50 to produce, and they probably wholesale for $250, so, at $200 "profit" a unit, they would need to keep their production costs down to $200,000 just to break even.
Even using existing computer designs and programs, switching to different materials, with different production runs and assembly runs, and different packaging and marketing, there have to be large additional start up costs to recoup.
Maybe I'm underestimating the world wide market.
Or is having the "latest, greatest" reel worth enough as a marketing tool that they'll accept selling the reels a loss?

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Re: new abu reel

Post by thelatrobe33 » Thu Feb 28, 2013 6:07 am

That $500 reel (MGXtreme I presume) is basically the same as all their other reels. So the R&D cost is minimal. The marketing costs are where Abu spends their money. That $500 reel is more than likely sold to retailers for $300 and Abu still makes about $100 each at that price.

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Re: new abu reel

Post by mark poulson » Thu Feb 28, 2013 6:11 am

So how many reels do they have to sell to cover their costs, and begin making a profit?
I know we bass fishermen are crazy, but I only know a few who change reels every time something "new and wonderful" comes out, and even they don't do it all the time.

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Re: new abu reel

Post by e_bassfisher » Thu Feb 28, 2013 6:15 am

mark poulson wrote:Even using existing computer designs and programs, switching to different materials, with different production runs and assembly runs, and different packaging and marketing, there have to be large additional start up costs to recoup.
this is the trick, right? fact is, there isn't THAT much to switch and or change....even the first revos were so close in design to existing parts and reels, that it could not possibly have cost NEARLY as much as most 'new' reels designs to start into production. they are building around long existing internals.....cams, driveshaft retainers, idler gears, ect, for the most part, are identical between the revos(ALL of them) and MANY other models and brands of reels.

if i had to guess, based on the factors i mentioned, the mark up to wholesale would be better on the $500 reel....

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Re: new abu reel

Post by dragon1 » Thu Feb 28, 2013 10:41 am

runmax08 wrote:I agree with the above statements..........However ABU products seemed to be holding their own.........when comparing them to Daiwa's and Shimano's mid range product line. I happen to own all three and have been very impressed with all three. We will never know the truth about the ABU REVO line other than its been very successful. I've been fortunate to visit some of those far east tackle shops and its unbelievable what they have to sell. To me, its more like Samsung versus Apple. (high price versus moderate price)
Are "they" really "Abu products"?

Comparable and competitive overall finished products aside. :whistle:

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Re: new abu reel

Post by mark poulson » Thu Feb 28, 2013 10:59 am

e_bassfisher wrote:
mark poulson wrote:Even using existing computer designs and programs, switching to different materials, with different production runs and assembly runs, and different packaging and marketing, there have to be large additional start up costs to recoup.
this is the trick, right? fact is, there isn't THAT much to switch and or change....even the first revos were so close in design to existing parts and reels, that it could not possibly have cost NEARLY as much as most 'new' reels designs to start into production. they are building around long existing internals.....cams, driveshaft retainers, idler gears, ect, for the most part, are identical between the revos(ALL of them) and MANY other models and brands of reels.

if i had to guess, based on the factors i mentioned, the mark up to wholesale would be better on the $500 reel....
All that computer controlled machinery must be what makes this possible.
I guess I'm still living in the past.
I still don't understand how it's cheaper to ship all the raw materials for steel leaf springs overseas and then ship the finished products back here, than it is to just manufacture them here.
The way things are going, with computerized robotics doing more and more, including medical diagnosis, pretty soon everything will be cheap, but no one will have a job and money to be able to buy all that cheap stuff.

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Re: new abu reel

Post by e_bassfisher » Thu Feb 28, 2013 11:36 am

i would think that the r & d and initial set-up in manufacturing would be the most expensive part of it....the reel parts incorporated in the revos have been made for a looooooong time, and surely VERY cheap to implement into revo designs.

as well, it is quite obvious that it must be MUCH cheaper to have everything made overseas as you can find very few items that aren't marked 'made in China' or, in this case, 'made in Korea'

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Re: new abu reel

Post by BRbasser » Thu Feb 28, 2013 12:01 pm

I believe that Lews reels are also made by the same Korean company. I think the company is called Banax. I understand they market reels under their own name in Korea and are very well known. It is basically a manufacturing company that manufactures products to spec. In other words if you want a seweing machine built with your own name they will do it for you for x amount of dollars. I would imagine the real cost for a medium quality banax reel would be well under $50.00. Just imagine the markup for a "high end" banax model. Selling the sizzle with the steak.

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Re: new abu reel

Post by dragon1 » Thu Feb 28, 2013 12:06 pm

Cheap labor and lower overhead (and fewer worker rights) allow for lower cost manufacturing.

It is what it is.

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