Huge Markups on Products in the Snow Industry Exposed
Here’s how Snowlovers Global can sell you a similar quality product for around half the price our competitors charge.
In the same way Decathlon, Amazon and other innovative online retailers have slashed the price you pay on many products, Snowlovers Global brought this new way of shopping to the snow loving community.
Everyone knows higher prices don’t always equal better quality and Snowlovers Global has proven this!
The price you pay depends on several things;
1. The manufacturing cost of the product
2. How many dealers and middlemen make a profit along the way
3. How many places the product gets freighted to before it gets to you
In many cases the actual manufacturing cost and product quality is similar
– it’s the middlemen and inefficient freight system that means you pay more for a similar item.
Snowlovers Global business model removes the expensive costs of middlemen and freighting products to stores.
There are only 3 people in our chain – the manufacturer, Snowlovers Global and you. This is because of the efficiency of online retailing.
Our competitors’ models often have 5 people increasing the price you pay. The manufacturer – (a buying agent sometimes) – wholesaler – retailer – you.
They multiple handle the product incurring extra labour and freight, they also have fancier packaging and advertising costs.
In our model only 2 people have to make margin – the manufacturer and Snowlovers Global. In their model up to 4 people need to charge their margin.
Let’s say Snowlovers Global and our competitors both import a similar product costing them $200, Snowlovers Global would retail that product for less that $300. Our competitors typically charge $600-$700. You would be paying double the price for a similar product.
Don’t be fooled by competitors then claiming their price is much higher because their product quality is superior.
When you buy from a franchisee or dealer (someone who sells other people’s brands), they make on average 30% of the sale price. So when you buy an item for $600, the dealer is making a margin of around $180 incl GST.
The wholesaler can be making a margin of about 35% of the sale price – again another $210) and the buying agent about $10.
To save money, ask yourself:
1. Has the quality of the product determined the sale price?
2. How much does the inefficient supply chain cost you, the customer?
The current ski industry retail model is out of date, inefficient, and charges the customer a “premium” for NO ADDED BENEFIT.
You, the customer have the power. Kogan revolutionised shopping for electronic goods, Amazon changed the way we buy books, now Snowlovers Global cuts out middlemen and extra freight costs to slash prices on snow and ski gear.
My promise remains to continue slashing prices on ski and snowboard products and make snow sports more affordable.
Founder – Snowlovers Global
Here is an example of our pricing model
At one of our competitors you would spend $400 or $500 for a similar jacket…. At Snowlovers Global it is JUST $102.95!