Apologies to the Alka Seltzer people for bastardizing one of their old advertising slogans. It just sort of sprang into my head the moment I saw Dwindle’s announcement on their Chop Chop Wood Shop. I assume it occurred to somebody that the name might be offensive to the Chinese, but this is probably just some form of obscure skateboard humor. Hope it turns out to be good business.
- To what extent will it be possible for an established brand to maintain higher prices in the face of Dwindle’s price cuts without giving away much or most of their volume?
- How much of these price cuts is going to filter down to the consumer? That is, do you think retailers will hold prices, or pass the lower prices on to the skater?
- What will be the impact on sales and margin of hard goods prices besides decks?
- What’s going to happen to the pricing and sales of blanks?
- To the extent that retailers choose to pass on their savings to skaters, what will happen the number of decks sold? Will it go up enough to compensate for making fewer margin dollars on each deck?
- Is there going to be any kind of backlash against decks made in China? If so, how long do you think it will last?
- What’s going to happen to distributors? If price cuts get passed through to consumers, will there be enough margin dollars to go around?
- What’s going to happen to brand value? That is, how will lower prices impact the consumers’ impression of a brand and its desirability to them?