What does the Paintball Industry need?

[TGR]

Before i even say my views on this i think as an industry they need to lose the issues thats been in the news, (episode in Germany etc)

A site that our team uses to train at were looking to run an open day, if you ask someone "do you want to come paintballing", the first thing they say is "doesn't that hurt", "don't you come back looking like a bashed apple!" What do you say to that... Don't get shot or go back to playing with your Barbies!

Other than that i agree with Jamie!

 

[Scrumpy]

Im currently in the process of trying to set up a paintball shop. One of the things i want to do is go to sites on weekends with a "market" style setup to show and demonstrate to site customers whats available. Something else i want to try to improve is customer understanding of the different elements of paintball whether it be Tourney ball, woods ball, scenario or just once a month walkon play by organizing a taster day incorporating as many different types of paintball as possible.

 

[Missy-Q]

The only problem with cheaper prices is that it can only result in a further diminishing paintball economy.
Lets say that the Ion drops from $200 to $100. Its cheaper, and worth the money, so whats the problem, right?
But even if the margins stay the same, the net revenue is 50%, meaning volumes have to more than double to stand still.

My worry is that the industry will go this route. The manufacturers will squeeze dealer margins, and their own, in order to present the public with a more attractive price point.
Take for example the Etek 3. I hear that might even retail as low as $495. It was $595 for the Etek 2. Thats $100 less revenue in the industry for every gun sold, a 20% drop in turnover for that product. You would have to sell around 40% more product to make up this shortfall, due to the residual costs and additional overhead of increased sales.

If people sell the same amount of product, but for less net dollars, and make less margin on those dollars (likely), and they were in trouble before, then guess what - they're going out of business.

Like this 50 cal thing. paintball's going to be 30% cheaper they say, and thats going to 'fix' the industry. That spiel may work on the players, but if the dealers think about it long term (post initial investments), aren't they resigning themselves to 30% less total revenue going forward?
The banks lend based on total revenue don't they? 30% less revenue could cost people their houses, their businesses, etc. unless 30% more people start playing. Anyone think that 30% more people are going to start playing?

 

[Missy-Q]

Im currently in the process of trying to set up a paintball shop. One of the things i want to do is go to sites on weekends with a "market" style setup to show and demonstrate to site customers whats available. Something else i want to try to improve is customer understanding of the different elements of paintball whether it be Tourney ball, woods ball, scenario or just once a month walkon play by organizing a taster day incorporating as many different types of paintball as possible.

I think that's great, in a localised way. Perhaps its just local guys with passion that will end up making the difference. It would take a hell of a lot of you though.

 

[Dskize]

I realise I led us down this path but lets backtrack a bit ,rather than focusing on site specific improvements can we stick to the intial question of Missy's ,what do you think the industry need to achieve to reverse the downturn ?.

On the 50 cal thing ...did anyone actually say that 30% was definately going to be passed on to the players...

 

[Scrumpy]

30% is a huge number! maybe over several years this is achievabale but what the industry is after is quick yet lasting fix. The person who comes up with that will be a millionare severall times over. As mentioned earlier we need something to make paintball more accessible for your average joe.

 

[Scrumpy]

I think that's great, in a localised way. Perhaps its just local guys with passion that will end up making the difference. It would take a hell of a lot of you though.

thats the thing tho if all the major paintball shops supported more then just the site they're attached to then maybe there would be a higher convertion rate of punter to own gunner.

I know that a shops priority is going to be to their parent site (e.g. Warped to the Warped site, Paintball Warehouse to UCZ etc.) But surely it would be good for the industry and therefore see an increase in the shops trade.

 

[Biscuit]

missy mentioned the etek 3 being cheaper than the etek2 ,now i believe i have seen two prices for that marker 1.$600 all metal and 2.$450 with composite trigger frame. so maybe the industry has to look at new materials that will make thier production costs cheaper,thus they are able to offer products at a cheaper price but still keep thier profit margins the same

 

[onasilverbike]

I don't think you get it Biscuit, if the goods are made cheaper and retailed cheaper, there is less money in it for the retailer, even though the profit margin for each item may be the same - the overall turnover, and therefore profit, for the retailer is reduced unless there is a significant upturn in sales volume. I.E. more customers!

Unless there are more customers, the retailers will either have to make economies (give up retail premises and go online only, lay off staff, etc.) or close.

 

[Dusty]

The only problem with cheaper prices is that it can only result in a further diminishing paintball economy.
Lets say that the Ion drops from $200 to $100. Its cheaper, and worth the money, so whats the problem, right?
But even if the margins stay the same, the net revenue is 50%, meaning volumes have to more than double to stand still.

My worry is that the industry will go this route. The manufacturers will squeeze dealer margins, and their own, in order to present the public with a more attractive price point.
Take for example the Etek 3. I hear that might even retail as low as $495. It was $595 for the Etek 2. Thats $100 less revenue in the industry for every gun sold, a 20% drop in turnover for that product. You would have to sell around 40% more product to make up this shortfall, due to the residual costs and additional overhead of increased sales.

If people sell the same amount of product, but for less net dollars, and make less margin on those dollars (likely), and they were in trouble before, then guess what - they're going out of business.

Like this 50 cal thing. paintball's going to be 30% cheaper they say, and thats going to 'fix' the industry. That spiel may work on the players, but if the dealers think about it long term (post initial investments), aren't they resigning themselves to 30% less total revenue going forward?
The banks lend based on total revenue don't they? 30% less revenue could cost people their houses, their businesses, etc. unless 30% more people start playing. Anyone think that 30% more people are going to start playing?

Not so, Joe Punter doesn't know the difference between .50 cal and .68 cal.

All they are concerned about is the amount of times they can pull the trigger, so for site owners paying 30% less for the raw materials of their business and still being able to charge normal rates, in my case £5 per hundred SHOTS.

It's not about cost, it is about value for money.