View Full Version : How much does a head actually cost to produce?
lukefarm
05-19-2005, 10:12 PM
:dummy: :argue: :dummy:
TRELAX
05-19-2005, 10:18 PM
Thousands of dollars actually. Between the cost of R&D, Marketing and manufacturing.
laxattack8888
05-19-2005, 10:51 PM
Probably under $15. Warrior and all them have a ridiculously disgusting markup in price. Even what we think are sale heads are still giving them 200% profit probably.
Daplum92MTNlax
05-19-2005, 11:03 PM
ive never thought about that before...
regulate34
05-19-2005, 11:31 PM
its almost sickining how much they r getting form us
Stonewall35
05-20-2005, 01:27 AM
From what I heard, it costs about $100,000 or more to make a mold for a head, which takes about a year to make. Once the mold is made, companies have to sell X number of heads in that mold to pay for the mold. Any heads sold after that point is pure profit.
giantredlobster
05-20-2005, 01:32 AM
I just thought of that yesterday. As much as I love lacrosse, I hate that its so equipment focused. Don't get me wrong... I understand that when your good and try your hardest, that better equipment is helpful; i.e stronger shafts or more flexible arm pads. But so many people think that having mac daddy limited edition super pimp gloves will make them the best players when they dont stand by the sidelines with their helmets on waiting to go into the game. Wow kind of went of, but my point is all these people are spending 50-100 dollars on these pieces of plastic that cant cost more then 3 dollars a piece to make because they think they will play like mikey powell.
KnightsLAXDad
05-20-2005, 07:28 AM
From what I heard, it costs about $100,000 or more to make a mold for a head, which takes about a year to make. Once the mold is made, companies have to sell X number of heads in that mold to pay for the mold. Any heads sold after that point is pure profit.
I had a coworker look at a new head, and he explained a little more about the
way things like lacrosse heads are made and some of the costs. Beyond the
initial of designing it, the molds used, which are usually three or four and then
the pieces are fused together, are in the 10's of thousands range, and they
don't last forever. The actual cost of the plastic going into the mold is cheap
but the engineering costs to recover are high. Throw in operating cost, profit
by the manufacturer , distributor and retailer and you get the price of a head.
It's not just the actual cost of material that needs to be considered.
stegmakk
05-20-2005, 08:51 AM
:thumbsup: I believe what Knightslaxdad says...
also remember...Retailers make a hefty profit as well...
D4lax
05-20-2005, 10:53 AM
if you want to talk about warrior, your not paying for the head. your paying for the famous player that designed the head, the full page add for the head in Great Atlantic, what it costs so that MLL can only use that head and the profit for the people up there in warrior
OutBurst
05-20-2005, 11:46 AM
:thumbsup: I believe what Knightslaxdad says...
also remember...Retailers make a hefty profit as well...
Can someone say Business Major?
RottingMind13
05-20-2005, 11:52 AM
advertising costs money to do. They need to collect back from paying for the ads and the guy to take the pictures of the heads and the person that puts it on the backgrounds/designs the background. The people that design the head, the molds etc etc etc. Its more than just a 15 dollar process. THe plastic might be 15 dollars (no idea what it really is) but there is much more than 15 dollars that goes into producing a head that will sell and will still earn the company enough to stay afloat and to make profit
laxattack8888
05-20-2005, 12:06 PM
True, I never thought about the mold part and player design costs...
lyonslax98
05-20-2005, 01:45 PM
if a head costs warrior $15 to make and you buy it for $70, warrior doesn't make $55. the retailer buys it at wholesale price and then marks it up. so on this head, warrior is going to see only that wholesale price from the retailer. your $70 goes to the retailer, not warrior.
laxdevil666
05-20-2005, 01:54 PM
but then the retailer buys more heads from warrior, so it evens out....also...the plastic that they melt into shape, probably costs about 25 cents...your really just paying for advertising...but most importantly, you are paying for the warenty..if you think about it, that is where the company would loose the most money..
lyonslax98
05-20-2005, 01:56 PM
well yeah, but then these new heads they buy from warrior are bought by the consumer and so on and so forth. of course warrior wants their heads to sell so the retailer buys more, but they don't directly profit.
stegmakk
05-20-2005, 02:22 PM
Wow...ok...quick things to think about...
A cost of a head includes more than the plastic...
You need to cover R&D work, various plastic molds and prototypes...multiple molds as they do not last forever...the actual production (labor and materials)...packaging (both the little tag on the head as well as cartons to ship to US...shipping from china or wherever to the US...warehousing the product...shipping to the retailers...
then you also have to cover SGA costs (selling, Gen'l and Admin)...this includes everything from advertising, to clerical and accountant salaries, promotions and giveaways etc...
now the heads are produced not by warrior themselves...it is a supplier...which means when Warrior pays for the head the supplier is going to jack up the price to warrior than it actually costs...
someone was right before somewhere they calculate costs of warranty...
and also yes then the retailer takes their margin..
stegmakk
05-20-2005, 02:26 PM
now...not to totally defend equipment mfgrs as i also think prices are high...
lax companies make their products AROUND price...not pricing around product...
meaning if they think they can sell a new head at $100 they will design and advertise it around that...same with the ridiculous gloves...they realize they could sell X amount of the gloves at the X price...then they can work backward and breakdown based on margin...how much to spend on ads and design and production...
lacrosse_player
05-20-2005, 02:28 PM
From what I heard, it costs about $100,000 or more to make a mold for a head, which takes about a year to make. Once the mold is made, companies have to sell X number of heads in that mold to pay for the mold. Any heads sold after that point is pure profit.
that is about what i have heard. I heard that from a local sportstore worker!
PimpD-LaxRider
05-20-2005, 04:33 PM
^ I hurd that to...:guns:
KnightsLAXDad
05-20-2005, 06:09 PM
Can someone say Business Major?
Nope, engineer. :thumbsup:
KnightsLAXDad
05-20-2005, 06:14 PM
now...not to totally defend equipment mfgrs as i also think prices are high...
lax companies make their products AROUND price...not pricing around product...
meaning if they think they can sell a new head at $100 they will design and advertise it around that...same with the ridiculous gloves...they realize they could sell X amount of the gloves at the X price...then they can work backward and breakdown based on margin...how much to spend on ads and design and production...
In short it's what makes the western world tick - capitalism! :chuckle: Warrior
is in business to make a profit, as are the retailers and distributers etc etc.
No profit, out of business plain and simple. The price they charge is "what the
market will bear" as there are plenty of choices elsewhere. Quite simply they
charge what people are willing to pay for it, as long as it generates a profit.
FaCe-oFF-MIddiE
05-20-2005, 07:34 PM
well its a good thing warrior is makin profit or else they wouldnt have these wonderfuk lacrosse heads, you may not realisce it, but everytime you buy sumthing that moneys goes to some bigger better plan the company has. so in other words, if u buy a warrior head, you are helping warrior make more lacrosse heads. with every profit they make, they put it into bigger ideas.
OPlax08
05-22-2005, 10:52 PM
it is so stupid all they have to do is take an old mold, put a new piece of plasic on or something and vwah-la its a new head...another 80 bucks from us.
VroomNA
05-22-2005, 11:54 PM
warrior is really all MARKETING. They take pics on the beach with their sticks thinking ud get the "females" if u used their product. There flashy gloves are 100% marketing through there mere image.
RottingMind13
05-22-2005, 11:54 PM
ok so each year u want the same head, same exact head that wont last forever. no new models. because the molds are different for each head. apparently u havent read anything of what any of these people said. 1) the molds dont last forever 2) innovation requires u to change what you use 3) "a new piece of plastic or something" shows how ignorant you are because obviously you have no understanding whatsoever as to what goes into the process 4) on a different thread it says something about each tweak that goes into a head requires a new mold meaning more money for that.
Ignorance just makes me mad >.<
jmplax31
05-23-2005, 12:43 AM
I little figure I came across somewhere and good food for thought. Warrior made about 20 million dollars in sales last year. (Sales NOT profit, those are two different things)
Jpettit25
05-23-2005, 05:35 AM
Was there a figure for their net profit or income?
It's all about capitalism which has been mentioned already, and supply and demand. People will pay the high prices, so companies keep them up there. It's how everything in the world, minus a few communist nations, works.
And I majored in Business in high school, but am not pursuing it in college.
urbanalax
05-23-2005, 12:56 PM
lax heads are too damn expensive. If the stick is over a year old, it should be 30 bucks, max. the molds are expensive yes, but lax companies are making insane amounts of money from people
Declan
05-23-2005, 06:11 PM
alright herees my 2 cents
People want a good head it doesnt havee to be the best but if it costs a lot of money and peeople are going to be in aw then they want it Its likee some kind of faggy fashion thing