Ebonite News release

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kidlost2000
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Ebonite News release

Post by kidlost2000 »

http://ebonite.com/news_events/news_det ... e_accounts" onclick="window.open(this.href);return false;

Curious to see if this works better then there other release from a year ago.

(other release from June 2009)

http://ebonite.com/news_events/news_det ... p_advocate" onclick="window.open(this.href);return false;
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coolerman
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Re: Ebonite News release

Post by coolerman »

Did you get tired of arguing this point with jls,on BR.

My opinion,learn to adapt or go under.No protectionism needed.
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Re: Ebonite News release

Post by kellytehuna »

I like the programs initiative, actually. They're stepping in providing a competitive market for ALL ball resellers, which actually works in favor of Ebonite International.

As a web developer by profession, I know the marketing potential of a well designed, well deployed website. A brick and mortar store doesn't have anywhere NEAR the same reach as a website. Add to the mix prices that are ALMOST distributor prices and you have an environment where the brick and mortar stores cannot compete! At least, not in ball sales.

What this means, is Pro shops are forced to either sell at cost to shift the ball and charge MUCH higher for the ball, or charge MUCH more for the ball and throw in their services at a lower rate. Either way, they barely cover costs of the ball and their services. Not the best business model, by any stretch of the imagination.

Since the only REAL cost of running a website is hosting costs, any serious website will invest in their own hardware. Provided you sell a high volume, you will cover your costs easily and make a healthy profit.

It's all about reach. Remember when Microsoft was forced to split because of its monopoly on the browser market? Similar concept here. The little guy should be able to compete. Internet ball resellers pricing strategies are just too hard to compete with. They are a good $30 or so cheaper than most stores. In some cases, more! That's hardly fair on the little guy, is it?

If you were a consumer of a product and can see you could get that product somewhere else at a MUCH cheaper price, wouldn't you buy that product from them? What if it was your business being under cut? Would you still be saying "adapt or die?"

I think this is the right move by Ebonite and hopefully the other big players will follow suit. Without Pro shops providing the service they do, bowling will quickly diminish in numbers and soon will nothing more than a recreational sport played with house balls. Do we really want to see that happen?
Last edited by kellytehuna on October 22nd, 2010, 6:59 pm, edited 1 time in total.
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Re: Ebonite News release

Post by Slap »

It could be informative to discuss this topic without the "flair" of BR.
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Re: Ebonite News release

Post by Slap »

coolerman wrote:Did you get tired of arguing this point with jls,on BR.

My opinion,learn to adapt or go under.No protectionism needed.
I'm a free market guy, so I pretty much agree with your post.

In my opinion, unless the internet companies are make illegal deals, let competition drive the market. I think the good shop owners are finding ways to make a profit outside of the traditional revenue streams. In my "world view" some shops will close, some will thrive. That's business.
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Re: Ebonite News release

Post by kidlost2000 »

Slap wrote: I'm a free market guy, so I pretty much agree with your post.

In my opinion, unless the internet companies are make illegal deals, let competition drive the market. I think the good shop owners are finding ways to make a profit outside of the traditional revenue streams. In my "world view" some shops will close, some will thrive. That's business.

Wanted some opinnions from actual people in the business. I will argue will JLS till the cows come home and learn to talk. He is one sided. (1D for the younger people)

I'm also for the fre economy and don't see this working well for Ebo. If you lose say 10% of sales in this economy and don't recover it when people go to the pro shops then what are you going to do? Lay people off? Or find some other way to account for that money you no longer have.

Since there other press release either didn't work or they didn't follow through with it I can't imagine the possible backlash on the proshop side if these companies continue to sell Ebo stuff at a lower cost. It may be a no win situation Ebo just walked into. The only Ebo products I've used in recent years are from Hammer. The other stuff has not been impressive to me, and here locally has failed miserably to the point the local shops have a lot of older stock still on the shelves. Even there early season Ebo packs stuff hasn't sold. Feel bad for the shop owner because I know he got that stuff and a great price and marked it to sell and no one really considers it.
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Re: Ebonite News release

Post by Slap »

I don't see how Ebonite loses in this situation. I doubt the general bowling public will know and/or care about this policy change. Joe Bowler still wants his Mission 2.0. I wonder about the response from the distributors who just lost these accounts.
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Re: Ebonite News release

Post by kidlost2000 »

Its not inreference to the general public as much. The GP that buys from online stores may be less likely to buy there if the 2.0 goes from $130 shipped to $150 shipped. The ones that really want the 2.0 will get it from local shops, others may decide to try something else that fits their budget.

Local shops could then charge more for the 2.0 because they won't be under cut from online sales. This may keep some others from buying the ball as well. It may be a lot or it may be a little that the sales are effected.

1) So far we know those distributors that sold to these companies will be upset because they just lost a huge amount of sales.

2) Some online consumers may be upset, or buy less since they now have to pay more for the listed products.

3) Proshops will be upset if these "big 3" still sell these bowling balls at cost with free shipping and know that Ebo is getting the money direct from the shops and cut out distributors. Ebo can't blame distributors for the prices.


There are many ways this could play out that may hurt sales for Ebo is why I say it may be a lose, lose situation. I'm also curious since the press release said nothing about prices and enforcement of prices. It was a general press release but the lack of details is where we coulds see this being even more interesting.

Prices online will soon give us our answers.
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Re: Ebonite News release

Post by The Kid »

As an economics major, I definitely agree with the free-market approach to this... with an addendum:

We have to consider the effects of predatory pricing on the overall market. In my opinion, everyone can lose in the long run. Because pro shops offer products (the prices and profits of which are being driven lower and lower) and services (which are irreplaceable by internet retailers), they will always be profitable (via service price hikes and severe product downsizing to nearly no stock).

This model, however, is not very attractive and the amount of knowledgeable ball drillers will decrease sharply. This leads to less and less bowlers (despite the decreased prices of bowling equipment) and less product moved in the long-run.

The pro shop industry is not quite like Rockefeller underselling the little guy and still being able to make a profit in the long run because people still bought gasoline. It's more like the shoe makers/repair stores being outsold by the corporate shoe companies. With the product of custom shoes left the service of shoe repairs.

My opinion is that price floors should be set in order to promote the long-term health of the entire industry. However, I do believe at current online prices, profit is still achievable and luring enough for local proprietors.
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Re: Ebonite News release

Post by MegaMav »

Well said by The Kid.
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Re: Ebonite News release

Post by DannyMule »

Knowing that big manufacturers based in Utah and Mexico are substantial investors in the demise of small-business pro shops as a whole, I am happy that I don't see Ebonite Ads popping up on the big online catalogs. There are hundreds of thousands of dollars in revenue being stuffed in the pockets of e-tailers by none other than the manufacturers themselves. E-tailers receive tons of advertising dollars that will never be offered to the local shops. The web sellers can wholesale to the public because they need little or no margin on the products being dumped on the market. They have been handed their profits by the manufacturers.

Sorry for the pro shop guy who has nowhere near the market for advertising exposure needed to get dollars from the manufacturers. He is left with a 15% to 30% loss in revenue and told by the customers that he should be happy to get the drilling fee.

the laissez-faire approach 'oh well... that's business'... can you add anything actually helpful to that?
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Re: Ebonite News release

Post by Balldriller »

Well said. Most people don't realize the revenue from the banner ads on those sights allow them to charge the low ball costs.
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