Saturday, 20 June 2015

Paragliding Economics 101A: Shopping Around (First Paraglider Purchase).

Looking at lessons, trying to sort out the true costs.

No rental option, local used market is dried up (there is an ebb and flow to used wing availability - very dependant on time of year).

Guess a new wing it is.

If you are part of the rare 1% who has reigned in impulse and taken a step back to consider the true costs - you're likely wondering how to best save some coin on equipment purchase. 

The majority of the worlds wings are fabricated in a small number of factories that cater to multiple brands (a secret manufacturers don't make very public) and are made from a very small collection of fabrics. The result -> production costs are relatively similar.

In addition - R&D, administration, and marketing typically scale. Larger manufacturers pour more into marketing (sponsoring competition teams and factory pilots), have in house designers, and employ test pilots. Smaller shops outsource the entire design process and limit marketing to very specific regions/segments. 

What does this all mean?  

Commoditization.

A wing in EN class X should cost Y no matter the brand. A price above this is either result of inefficiency or the padding of margin somewhere between you and the manufacturer. The former will die due to decreasing market share, the latter will perish with an informed customer.

What can you do?

Become informed. Window shop around. This can be a touchy subject as it will eat into a schools margin. A *pre-authorized* purchase outside the school is sometimes offered as an unspoken option for an 'uncorking fee'  - typically around $500. It will not hurt to ask up front before paying for lessons, if I want to buy a different brand than what you carry, what is the additional cost? If nothing else, it could pressure the school dealer to price match if they wish to maintain market share.

How much could you save?

Pricing options for low end EN-B (a common first wing here) plus harness and reserve in the Vancouver market:

Equipment Dealer A Dealer B Dealer C
Wing $3900 $3500 $4000
Harness (with back protection) $900 $650 $1100
Medium Reserve $660 $700* $1000

* I had to query the reserve price, as none was published.

The right combination of the above can net over $1200 in savings.The catch is the need to negotiate. A smart dealer will realize a customer who feels they are getting a good deal will become a repeat customer.

In the end the right questions cost you nothing and can save you alot.








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