So, if you’ve been following trade media, or have been attending the merry go round of trade fairs, you will know that the industry is forecasting a 15-20% increase in retail prices for inflatable SUP in 2017. And also that they’re using this as marketing to push sales of their remaining 2016 stock, before prices go up. This is a pretty common end of year retail strategy to drive sales in the current year, and doesn’t necessarily mean that prices will go up. However, it is certainly true that the value of the pound has been falling ever since that fateful day in June 2016. And the cost of inflatable paddleboards to manufacture is pretty much pegged to the dollar. All the raw materials are priced in dollars, so if the pound goes down, the cost of an inflatable SUP to a UK brand goes up.
But does that mean that prices should go up? A few thoughts on this:
- A commercially astute large company will be ‘hedging’ currency costs over a period of time before any major stock purchases to lessen the impact of currency fluctuations. That hedging should help protect the company against needing to hike prices too. And most of the large brands are already displaying their 2017 lines at trade shows, so the kit could already be sat in warehouses waiting for distribution. It doesn’t matter what the currency exchange rate is now, it matters what it was when the products were purchased some months ago.
- And this problem is a peculiarly British problem. Any brand that sells most of their product outside of the UK could probably take a small hit on the UK sales without it having a large impact on their overall profitability.
- When the value of the pound rises against the dollar, we don’t hear rumours of the retail price dropping. Does anyone remember the price of kit dropping in 2014 when the pound was worth almost $1.70?
That’s not to say that the price of the pound isn’t affecting smaller brands and retailers. It definitely is, so if you want to keep getting advice from your local shop, you to need to buy stuff from them, not just from online retailers like us. And don’t assume they will always be there to give you advice if you don’t use them. On that note, McConks is looking for a small network of perfectly formed demo and retail outlets for 2017. So if this might be you, drop us a line on the website .
So, the big question, should you rush out and buy inflatable SUP before now before the prices skyrocket?
Firstly – why not enter our competition to win a 10’6 or 10’8 inflatable paddle board package with Carbon fibre paddle? Register on our website and share this blog to enter.
If that fails, small and large brands alike have made it clear that prices will be going up next year. Not for McConks however, the RRP for our 10’8 board, for example, are going to remain at under £700 for a package with a carbon fibre paddle, and under £600 for a package with the fibre glass paddle, and we will have some great discounts as well. The same package from Red Paddle would be £1,000, and £880 respectively, and that’s at 2016 prices: You can probably add 15% to those prices for 2017. So if your heart is set on that Red Paddle Ride, now would be a good time to buy. But the savvy paddler would save their money and wait for McConks 2017 line.
So if you don’t have the cash to splash right now, don’t worry. McConks will be there for you in 2017 with our new lineup of with great quality inflatable SUP at fair and affordable prices.