Whos making all the money?

[LgMouthGambler]

With reel companies popping up all over the place, we have to wonder who is banking off this. We know the 2 big dogs are Daiwa and Shimano, but the competition is stiff. So stiff they do all they can to try and not let there be a known problem out there on the internet. I know, I pointed one out and 2 main people that apparently used to work for that company did all they could to get that off the web.

So here we have all these others out there that are trying to make a name for themselves. But if there are soo many companies, how are they making any money in sales??  I will tell you who is laughing all the way to the bank, Korean and Chinese OEMs. Why? Because they are the ones making all the reels for all the other companies that are out there. Lews, BPS, KastKing, Okuma, Browning, Cabelas, 13,  ABU, ... the list probably can go on and on.

These companies just take a catalog of body designs, brake designs, accents, and many other options, and they make what they want. Can you imagine how much money these OEM companies are making off the bulk they are making? 

[topdsm0138]

I got a buddy who works for Jarden (think that's how you spell it), the company who makes Shakespeare and Abu Garcia. He's been trying to get me away from my Zebco/Quantum for years now and I won't.

I've just had too many years of good service out of their products to quit using them.  It's all a corporate game of greed with most, push a name and bank off it.

Sent from my SM-J700P using Tapatalk

[Oldfart9999]

I think the other group making the money are the big sellers, BPS, Cabela's, Tackle Warehouse, etc, the little guys not so much.
Rodney

[njpaulc]

You'd be surprised at how many of the reels in the  Diawa and Shimano lines on made on the same assembly line as everybody else's reels.

[bravo619]

You'd be surprised at how many of the reels in the  Diawa and Shimano lines on made on the same assembly line as everybody else's reels.

And probably a few other big names to!



-- "Only two defining forces have ever offered to die for you: 1. Jesus Christ 2. The American G. I. One died for your soul, the other for your freedom.

[SteveTX]

You'd be surprised at how many of the reels in the  Diawa and Shimano lines on made on the same assembly line as everybody else's reels.

Don't bring logic or reason to a thread like this. Fanboys of Diawa and Shimano will 

[3crows]

Which Shimano reel is made in China on an assembly line with all of those others? I know some are made in Japan in a Shimano owned factory and some are made in Malaysia in a Shimano owned factory.

Threads like this are just for fighting and serve no purpose. You should purchase the reels you like and let others do the same.

In 1973 dollars the Curado I just bought was only $20 and in 1973 I am pretty sure I paid $54 for a Abu 5500C which I still use and fish. Going the other way that is nearly $300 now. The reason nearly everything is made in China is because we are unwilling to pay the consumer prices that would afford living wages in developed democracies. Well, it is probably a bit more complicated than that but----.

[Msn26753]

OK.. I may not be an expert at fishing,  but when it comes to retail,  I am the man... Lol.. I'm not going to tell where and who I work for , and this may get a little boring, but here we go.. And I'm going to apologise  ahead of time on misspelling..  I get typing and don't look at spellchecker,  so she words might get changed..
20 years ago,  your average margin in retail stores was 15 to 20 percent..  The e retail industry was on quantity.  The retail industry hired man power and tons of overhead (stock). It was ship it in and the saying was stack it high and let it fly..  That was a major retailers slogan..  Margin was low so people bought more product..  Over the last 10 years the stock market (wall st) started rating  retailers if turns.  A turn is how much a store sales thru their product in store.  Example : dollar store has 1 million worth of product in store.  Every million dollars it sales is called 1 turn...  So the retailers started cutting back on stock levels to make it look like they were more profitable to wall st.  Which raised their earnings, stocks,  and ratings.  So since then the retail industry has cut back so much on stock in the stores,  they had to raise the margins.  This was also do to Sept 11 terror attacks.  The company's raised margin because shipping and cost of goods went up.  Instead of dropping the margins and the price, when the economy got back to normal,  retaiilers figured out they could keep margin high and keep the stock(merchandise) levels  low..  In turn they didn't have to hire as much staff. Which saves insurance and fulltimers are now partakers.  So now retailers are on a different philosophy.  Keep stock levels low so they don't have the man power expenses.  That's why you go into these big box stores and there are no one there to help you.  They have 20 registers and 1 cashier. 

So to answer the question of where the money goes is simple..  The retailers average 40 percent margin compared to 15 to 20 percent 20 years ago.  So retailers now have doubled their money on the products.  The consumer is paying that.  The retailer is not paying the overhead or any of there other expenses they use to pay either..  So the retailer rather it be Walmart,  Supermen,
Lowe's,  homedepot,  Kmart, BPS,  Cabellas,  or dollar general is ripping the consumer off..  40 percent margin is high..  Furniture and jewelry  stores use to be the worst at high margins,  but now it's across the board..  The cost to build a home has quadrupled in last 20 years..  The cost of a vehicle has quadrupled..  Why? I remember 25 years ago you can buy a new truck for 5999.00 .. Now it's 49999.00... Wow

All these companies are now being targeted by eBay and Amazon.  Internet sales are putting them at a threat..  When you buy internet and it's free shipping over 50 bucks and no taxes,  it's hard to beat..  Now these retailers are upping their internet game,  and cutting back more on staff (employees)  and other expenses..