Concept2 co-founder Dick Dreissigacker discusses the pricing strategy used when launching their composite rowing oars and subsequent products.
Insight
Concept2 Built Its Most Successful Products to Serve the Founders' Needs
“Most of the products that we've worked on and been successful with are products that That we want to use ourselves, you know, and the theory is that if we, you know, like the idea of having some way to train specifically for rowing without having to get to the…”
Disclosure
Concept2 Chose Direct Sales Over Giving Retailers 40 Percent Margins
“I mean, I think when we first started out, you know, stores or retailers were demanding very large margins, you know, they had to have a We didn't want to raise our price so that we could give them a 40% margin.”
Assertion Not checkable as stated
Concept2 Generates More Than $100 Million in Annual Revenue
“We'd be a little bigger than that.”
Insight
Reducing Oar Blade Weight Determines Competitive Rowing Race Outcomes
“First, when you're rowing at a high stroke rate, you're having to move, swing this, rotate this oar back and forth. Through this wide arc, and because there's weight, particularly the weight out at the end where the blade is, it takes effort to accelerate that…”
Assertion Supported
Harvard Ordered Concept2 Oars Only After Losing to Yale
“After Yale beat Harvard, We got an order from Harvard for the oars.”
Assertion Not checkable as stated
Concept2 Sold Out Its First 50 Indoor Rowers at a Regatta
“Well, at that point, we had, we were doing our first batch, I think it was like, 50, and I think we sold most of those, if not all of them, at that Masters, yeah, Championships regatta.”