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Old 02-10-2011, 10:00 AM #22
generalee72
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Quote:
Originally Posted by yuik View Post
why is this? ie why does paintball only have a 20% profit margin where other industries have greater ones.

ie how/ why does k2 sell a 1000$ pair of skis to a ski store at 500$ when a a 1200$ paintball gun only has a 20% profit margin?
I believe the "accepted fact" is that paintball businesses have lacked proper long term planning.

The sport is still young, and the industry even younger. I believe the larger portion of our industry is/was built by paintball hobbyists without a large understanding/care of traditional business. They built their company's and pricing structure around "getting theirs" and not being concerned about the rest of it, or focusing on what they need to do to pay bills today. Unfortunately in some cases people continue to operate like this oblivious the the problem, in other cases it falls under the "you can't put the genie back in the bottle" problem.
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Advice for the thread: "how to open a paintball store"
NastyShock3r: hey guy's i live in miami i need help to open a paintball store can anyone help or can tell me what i need to do?
midstatepaintball: That's easy! Just push on the front door of the store if it says "push", or pull on the door if it says "pull".
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Old 02-10-2011, 10:14 AM #23
Horizon
 
 
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I generally agree with both GatSplat and generalee72.

The fact that the industry is hobbyist turned wannabe business owner also means that there is always an over abundance of businesses competing for market share, keeping prices very low. That's the way it works in a capitalist system, it's just that in paintball there are always WAY more than necessary (in both retail and manufacturing).

The fact that paintball grew up in the internet age and almost all of it's participants are computer savvy is also another reason margins are kept very low.
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Old 02-10-2011, 10:36 AM #24
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