#41  
Old 02-24-2021, 10:04 PM
Echota Echota is offline
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Originally Posted by nothinbuttree View Post
From a business perspective, (sorry, I was a finance major, can't help my train of thought...) how does Discraft justify this? Their reported 2020 sales were just under $4 million. That is sales, not profits. Now one player is getting 25% of their sales?!

Gotta be an angle I am missing...
If they're investing in more machines as well, looks like their plan is to out press and out market their competition. Having the premier spokesmen (and #2 in Paige Pierce) for the sport representing your brand and having the capacity to keep shelves stocked with your product while others are playing catch up seems like a winning move to me.

Also who will be the next company to follow this model?
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  #42  
Old 02-24-2021, 10:16 PM
gogo gogo is offline
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Originally Posted by Echota View Post

Also who will be the next company to follow this model?
Now is the time for the return of salient! 😂

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  #43  
Old 02-24-2021, 10:16 PM
oldmandiscer oldmandiscer is offline
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Originally Posted by Casey 1988 View Post
And the only discs that sell in big numbers are the Discraft Paul McBeth line and any other mold Paul uses. Maybe the Roach for those who can't find the Luna in premium but.... that might be it.
https://infinitediscs.com/blog/category/top-selling/

Keep in mind, most of these were out of stock for much of the year. Heat outsold the Sidewinder. Thrasher outsold the Anax. Fierce is up there as well. Nuke, etc.

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  #44  
Old 02-24-2021, 10:21 PM
DG_player DG_player is offline
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Quote:
Originally Posted by nothinbuttree View Post
From a business perspective, (sorry, I was a finance major, can't help my train of thought...) how does Discraft justify this? Their reported 2020 sales were just under $4 million. That is sales, not profits. Now one player is getting 25% of their sales?!

Gotta be an angle I am missing...
I thought the same thing. Even Nike who's entire business model is pretty much built on selling tremedously marked up product via sponsorships only spends like 15% of their revenue.

I would have to think given the fact they already had him under contract for 4 years and didn't have any reason to extend it, that they have seen a huge bump in sales due to McBeth and that's what drove the decision. The mention of buying more equipment to expand production capacity seems to support this.

If that's the case though I find it a bit surprising. No one I play with seems to buy discs based on brand loyalty or the pro's name on it. I never thought that meant much to most disc golfers.

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  #45  
Old 02-24-2021, 10:22 PM
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gammaxgoblin gammaxgoblin is offline
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Originally Posted by VictorB View Post
because the McLaren doesn't have room for a disc golf bag, duh
Discs are transported in separate climate controlled vibration dampened vehicle....
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  #46  
Old 02-24-2021, 10:25 PM
DanJon DanJon is offline
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In the video McBeth talks about his brand and having a partnership with Discraft.

This move really attaches the McBeth brand to Discraft almost permanently.

So even if he's not winning MPO World's at 40, he's still going to be moving a lot of discs.

As for the financial side, Bob Julio mentions in the video that they surpassed the first contract expectations in year #1.

Meaning they must have made the full contract (4 years) expectations/returns back in sales in one year.

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  #47  
Old 02-24-2021, 10:27 PM
Tomphoolery Tomphoolery is offline
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Maybe the contract is backloaded where he gets paid more years down the road instead of a flat million a year. Lots of NBA contracts are either frontloaded or backloaded to help with cap flexibility.

Cuz yeah I had the same thought. The sport exploded in 2020, and if Paul's name is on a disc it will sell, but that's a significant jump. McBeth was already MUCH better paid than anyone else. I'm wondering if the tide rises for all new contracts/extensions in the next couple years.

Furthermore, is he still making royalties on his discs? I don't have a source, but I heard he makes $5 per McBeth disc sold, whereas most pros make $2 per on their tour series discs.
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  #48  
Old 02-24-2021, 10:27 PM
Superbford Superbford is offline
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Quote:
Originally Posted by DG_player View Post
I thought the same thing. Even Nike who's entire business model is pretty much built on selling tremedously marked up product via sponsorships only spends like 15% of their revenue.

I would have to think given the fact they already had him under contract for 4 years and didn't have any reason to extend it, that they have seen a huge bump in sales due to McBeth and that's what drove the decision. The mention of buying more equipment to expand production capacity seems to support this.

If that's the case though I find it a bit surprising. No one I play with seems to buy discs based on brand loyalty or the pro's name on it. I never thought that meant much to most disc golfers.
There are a whole lot of first year golfers out there and I bet a lot of them will be paying more attention to advertising and branding.... and for many of them I believe, the best discs to throw are the ones they can more easily get.
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  #49  
Old 02-24-2021, 10:30 PM
nothinbuttree nothinbuttree is online now
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Quote:
Originally Posted by VictorB View Post
2020 sales might not be the best to look at. They did have factory shutdown for several months, so they weren't making additional revenue. All the discs in stores are already 'sold' by them at that point.
That is a good point, I don't know exactly how many weeks/months they were down, but the fact that everyone's shelves still seem to be low tells me that for whatever reason it is not that easy to simply 'make more' in a hurry. I know the process for each disc takes a while, so to dramatically increase production would mean a large capital investment in more equipment. And with the seemingly exponential growth in different discs, molds, weights, stamps, etc, it must take a lot of machines to keep up.

I do wonder if demand will stay elevated once the pandemic is largely over. I personally hope so, but again, the business side of me wonders. We could be on the brink of a large growth spurt, time will tell.
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  #50  
Old 02-24-2021, 10:32 PM
Biggie_Robs Biggie_Robs is offline
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Quote:
Originally Posted by Casey 1988 View Post
And the only discs that sell in big numbers are the Discraft Paul McBeth line and any other mold Paul uses. Maybe the Roach for those who can't find the Luna in premium but.... that might be it.
They'll sell plenty of non-McBeth Zones and Buzzzes.
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