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The Euro price point dilemma

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MUNICH, Germany – The international European sporting goods show Winter ISPO is giving not only an idea about the newest product trends and innovations but also about the upcoming Euro currency price point calculation. “While for consumers the Euro starts on Jan 1, 2002, for us it’s starting now. At this winter’s ISPO we have […]

MUNICH, Germany – The international European sporting goods show Winter ISPO is giving not only an idea about the newest product trends and innovations but also about the upcoming Euro currency price point calculation. “While for consumers the Euro starts on Jan 1, 2002, for us it’s starting now. At this winter’s ISPO we have to start first price point negotiations with the industry”, points out Werner Haizmann, president of both the Federation of European Sporting Goods Retail Association (FEDAS) and of the German Sporting Goods IBD Association (VDS). About 95 percent of all current sales prices will face the problem of adjustment to psychological price thresholds”, Haizmann forecasts. Siegfried Paßreiter, chairman of the winter sporting goods segment within the German Sporting Goods Industry Association (BSI) warns, “These hidden price increases could be inflationary.” Paßreiter also points at oil prices, as 70% to 80% of all winter sports hardware gets its base material from the petrochemical industry. Of course, the basis of the material is the start of the price tag, but in a world dominated by fashion there usually is a big gap between cost price and market value. (JB)

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