Economics of the Equipment Industry?

[JR Boucicaut 3760]

It's NOT that it sells better, it is because it is NEEDED.

Think.

You do not need sales data for something like that.

[AIREAYE 248]

Obviously its needed, because the demand for cheaper is always gonna be there. If there isn't low-end gear, people would turn to other sports. My original question was the validity of the source being Wikipedia, but no matter, the essay is almost complete lol

[Axxion89 32]

Haha I dont think a price difference of ~$200 can be compared to several thousands of dollars, but I get your point. That's why I'm not so quick to reach a conclusion, but good thing that my essay is about the behaviors of firms and not the purchasing behavior of consumers :P

Looking around, it seems definitely true that lower priced gear sell better. That's why stores like Canadian Tire and Sportchek carry more low-end gear than high-end. But without any sales data, that's something I can't prove and thus can't include.

Although you are researching firm behavior, consumer behavior is directly tied to what a firm does so to understand why a firm would produce or market certain products, you must understand your market and the demand of it. And also, although $200 is a lot less a difference than a few grand for a car, it is proportionate to each buying scenario so more people will buy the lower priced goods than the high priced ones in MOST product categories.

[iceNsteel 0]

Haha I dont think a price difference of ~$200 can be compared to several thousands of dollars, but I get your point. That's why I'm not so quick to reach a conclusion, but good thing that my essay is about the behaviors of firms and not the purchasing behavior of consumers :P

Looking around, it seems definitely true that lower priced gear sell better. That's why stores like Canadian Tire and Sportchek carry more low-end gear than high-end. But without any sales data, that's something I can't prove and thus can't include.

In real dollar terms, no. If taken in proportion then there really isn't much difference at all in certain terms. Granted I wouldn't exactly compare a Jetta and a 911 in normal circumstances. But in a more true comparison look at the sales of the Porsche Boxster vs. the sales of the 911's. That's a perfect comparison to high end vs lower/mid-line hockey gear. A consumer is buying the Boxster for two basic reasons:

1.He/she cannot afford the 911

2.His/her budget is arranged in such a way that their car priority is lower than other priorities leaving insufficient funds for the more expensive car.

That works especially well for recreational equipment in those terms. You have consumers that cannot afford the high end gear, or those for whom hockey is not a high enough priority to make funds available to get the highest end gear.

You also cannot separate firm behavior from that of the consumer. The consumer's behavior dictates courses of action to the industry. The warranty system on one piece sticks is a great example of something the industry would really rather not have, but must have because of consumer demand for it. You may well be writing about firm behavior, but the firm's are studying their customers and reacting to that behavior. So in essence it's really one and the same thing.

[DarkStar50 679]

Warranties on OPS were a necessary evil for the vendors in order for them to get consumers in 2000 to commit $150 to an Easton Synergy OPS. This price point was not only untested, it was unheard of. I know Easton reps that didn't believe the original Synergy could sell through at that price point. Little did they know!!!

[AIREAYE 248]

Then why did Bauer release the X:50 stick, or Easton release the S15 stick?

Wouldn't consumers rather

1: pay a bit more to get the best in the X:60 and S19

or

2: save a lot more and get the X:40 or the S13/S7?

These two sticks seem like anomalies to me, so are the only two explanations yours iceNsteel?

- They cant afford the best

- Hockey is a lower priority (BUT if its a lower priority, wouldn't they just get the X:40/S13/S7?)

I stated that these 'step-below' price points cater to those demanding elite-level performance but dont have the budget to do so. Thus, being a competitive oligopoly, once one firm does it, others want to do the same to compete for that demand.