Lee. Posted August 28, 2009 Share Posted August 28, 2009 Think about it kids, you're paying $30-40 to advertise a team or company for them.I repeat. YOU'RE paying THEM to advertise THEIR COMPANY.Plus, yeah, the economy.Wait, isn't that with every piece of clothing?3 pack of Hanes t-shirts, no printing, $7.1 Abercrombie tee, big gaudy writing, thinner material than the Hanes, $30.I know where my money's headed./wearing $31 Walt Disney World tee shirt, $7 socks, and $30 Old Navy plaid shorts as he types this out. Welcome to DrunjFlix Link to comment Share on other sites More sharing options...
Gothamite Posted August 28, 2009 Share Posted August 28, 2009 You Disney whore. How much is the Mouse paying you to sell out? pcgd's right. In this economy, a luxury goods manufacturer whose sales are only down 10% is doing pretty well, considering. Maybe if they weren't selling so many of those stupid-looking fashion caps I hate they'd be down 20% or 30%. The Green Bay Packers Uniform Database! Now in a handy blog. Link to comment Share on other sites More sharing options...
walkdesign Posted August 28, 2009 Share Posted August 28, 2009 I would argue it is price point more than anything, but the stupid designs definetly have to be a factor. In a down economy people aren't going to spend $40 on multiple hats. They need people to buy more than one, but at $40 you will only buy one, not two or three. Not to mention I am sure their margins are suffering because all of the cost cutting that happens with those ugly hip hop hats that always end up in the clearance bin. The market for those hats is much smaller than the supply. Or it could be that I just go to Champs or Lids and buy the buy 1 get 1 half off which effects margin as well. Why pay $60-$80 for 2 hats when I can wait and get them $35-$40? They are a victim of their own sales strategy. It's the same at Bed Bath & Beyond, studies have found that because everyone gets their 20% off coupon in the mail, people will avoid going to the store if they are out and about because they don't have their coupon even if they need to buy something inside.Another factor I would be curious about that I have encountered is sizing. The don't offer my size in lids anymore (7 7/8ths I have an enormous noggin), they only offer it online. I bought an authentic Yankee hat at the next bigger size an 8, but it isn't fitted right which has stopped me personally from buying at least 4 or 5 hats this year. I try to get a hat from the team of every client I have and I won't order a fitted hat online because it seems no 2 fitted hats fit the same. So I wonder how many people are like me that won't invest that amount of money on something that doesn't fit properly and I can't buy in person. Hats are an impulse buy, it is a bad strategy. That is what killed the GAP when they offered XXL's and other less mainstream sizes only online. It is a peny wise but pound foolish strategy. Walk DesignTwitterDribbbleFacebookGoogle+ Link to comment Share on other sites More sharing options...
Gothamite Posted August 28, 2009 Share Posted August 28, 2009 Those are not New Era decisions you're describing. Those are Lids decisions. And while Lids may be a major retail outlet for the caps, it's not the only one. The Green Bay Packers Uniform Database! Now in a handy blog. Link to comment Share on other sites More sharing options...
totc Posted August 28, 2009 Share Posted August 28, 2009 This may sound pretty harsh, but I say it's the wacky designs and not the economy that's hurting New Era's sales.Agreed.For every new funky design that comes out, hundreds of these caps wind up at A.J. Wrights all over America. Link to comment Share on other sites More sharing options...
walkdesign Posted August 28, 2009 Share Posted August 28, 2009 Those are not New Era decisions you're describing. Those are Lids decisions. And while Lids may be a major retail outlet for the caps, it's not the only one.Those are their largest distributors, it has a huge impact. Walk DesignTwitterDribbbleFacebookGoogle+ Link to comment Share on other sites More sharing options...
BBTV Posted August 28, 2009 Share Posted August 28, 2009 If they'd just make some more 30thirty stretch-fits (preferably all navy Detroit) in small-medium, they'd make at least one more sale, and probably get out of this hole. "The views expressed here are mine and do not reflect the official opinion of my employer or the organization through which the Internet was accessed." Link to comment Share on other sites More sharing options...
dahatman Posted August 28, 2009 Share Posted August 28, 2009 New Era has become a "fad/trend company". There are a lot of people that will pay top dollar for these "one off" and tready caps that New Era manufactures these days. Just check out this website www.neweracaptalk.com and see trend/fashion caps that are purchased. Eventually, this will come back to haunt New Era because like everything else trends change. Just ask Distant Replays, his business model originally that I have read, was to cater to athletes and celebrities who liked to wear the throwback jerseys. When the trend changed, the industry slumped and retailers needed to refocus to the die hard fans and serious collector. Another issue is that, IMO, New Era is hitting ceiling on how much it can charge for hat. When I first started collecting hats, they were $17 - $20. Now, they are made out of a lesser quality material and more expensive. On top of that, whether driven by MLB or other entities, they are perceived as going for the "cash-grab". As an example, the Stars & Stripes line of caps. What makes these worth $37? The ideas of being a limited edition.New Era sales might be down 10% but will get worse when the trend changes and trends always change. Link to comment Share on other sites More sharing options...
illwauk Posted August 28, 2009 Share Posted August 28, 2009 New Era has become a "fad/trend company". There are a lot of people that will pay top dollar for these "one off" and tready caps that New Era manufactures these days. Just check out this website www.neweracaptalk.com and see trend/fashion caps that are purchased. Eventually, this will come back to haunt New Era because like everything else trends change. Just ask Distant Replays, his business model originally that I have read, was to cater to athletes and celebrities who liked to wear the throwback jerseys. When the trend changed, the industry slumped and retailers needed to refocus to the die hard fans and serious collector. Another issue is that, IMO, New Era is hitting ceiling on how much it can charge for hat. When I first started collecting hats, they were $17 - $20. Now, they are made out of a lesser quality material and more expensive. On top of that, whether driven by MLB or other entities, they are perceived as going for the "cash-grab". As an example, the Stars & Stripes line of caps. What makes these worth $37? The ideas of being a limited edition.New Era sales might be down 10% but will get worse when the trend changes and trends always change.Who do you think is buying those goofy looking caps though? It's not the casual collector like me that stops in once or twice a year for an authentic MLB cap (who'd probably be more than a casual collector if the things didn't cost so damn much).I am not a fan of the styles that New Era puts out that glorify the thug life.I don't care for it either, but New Era is doing what corporations are legally obligated to do: make money... no matter how unethical it is. Link to comment Share on other sites More sharing options...
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