new abu reel
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- TT Pro Angler
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new abu reel
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?
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?
Re: new abu reel
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.
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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- TT Pro Angler
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Re: new abu reel
I don't understand what you just said.
- DE_Bass_Enthusiast
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Re: new abu reel
mark poulson wrote:I don't understand what you just said.
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- Platinum Angler
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Re: new abu reel
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....mark poulson wrote:I don't understand what you just said.
Re: new abu reel
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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- TT Pro Angler
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Re: new abu reel
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?
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?
- thelatrobe33
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Re: new abu reel
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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- TT Pro Angler
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Re: new abu reel
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.
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
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.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.
if i had to guess, based on the factors i mentioned, the mark up to wholesale would be better on the $500 reel....
Re: new abu reel
Are "they" really "Abu products"?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)
Comparable and competitive overall finished products aside.
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- TT Pro Angler
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Re: new abu reel
All that computer controlled machinery must be what makes this possible.e_bassfisher wrote: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.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.
if i had to guess, based on the factors i mentioned, the mark up to wholesale would be better on the $500 reel....
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
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'
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'
- BRbasser
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Re: new abu reel
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.
Re: new abu reel
Cheap labor and lower overhead (and fewer worker rights) allow for lower cost manufacturing.
It is what it is.
It is what it is.