jfmorris: "I don’t pretend to understand how Academy is selling something that lists for $599 right now for $160."
I want to preface my remarks here in the hope there won't be any misunderstanding. I am not saying that PB products don't cook well, or are junk. What I am saying is they get a premium price (and commensurate premium relative profit margins) for what they sell because they are very effective at marketing a satisfactory product.
The PBX at full list is nowhere as feature laden as any competition. It's an off the shelf 55 gallon drum, with 7 holes punched in it, three pieces of rebar, a fuel basket, three uninsulated handles, powder coated finish, and a cooking grate. Pretty basic, with the fire basket and faux horseshoe handles likely the only proprietary pieces. Other competitive products in the list price range have insulated handles, hinged and sealed lids, side shelves, ash pans, more adjustable intake and exhaust systems for more flexibility in temp adjustment, grease catch cans, heat deflectors, multiple grate level brackets, wheels for mobility, and thermometers. All standard equipment that adds production cost to the standard package.
Given the relatively simple bill of materials for the PBX the notion that $160 could be somewhere near the production cost is likely. That's what prompted my suspicion that these could be clearance priced because the PBX may not sell well against the competition at full list. It would be interesting to know if PB makes anything at the price they probably had to give Academy to just be able to move inventory to clear sunk costs. We'll never know, but it is a glimpse of how high the margins likely are at list.
I want to preface my remarks here in the hope there won't be any misunderstanding. I am not saying that PB products don't cook well, or are junk. What I am saying is they get a premium price (and commensurate premium relative profit margins) for what they sell because they are very effective at marketing a satisfactory product.
The PBX at full list is nowhere as feature laden as any competition. It's an off the shelf 55 gallon drum, with 7 holes punched in it, three pieces of rebar, a fuel basket, three uninsulated handles, powder coated finish, and a cooking grate. Pretty basic, with the fire basket and faux horseshoe handles likely the only proprietary pieces. Other competitive products in the list price range have insulated handles, hinged and sealed lids, side shelves, ash pans, more adjustable intake and exhaust systems for more flexibility in temp adjustment, grease catch cans, heat deflectors, multiple grate level brackets, wheels for mobility, and thermometers. All standard equipment that adds production cost to the standard package.
Given the relatively simple bill of materials for the PBX the notion that $160 could be somewhere near the production cost is likely. That's what prompted my suspicion that these could be clearance priced because the PBX may not sell well against the competition at full list. It would be interesting to know if PB makes anything at the price they probably had to give Academy to just be able to move inventory to clear sunk costs. We'll never know, but it is a glimpse of how high the margins likely are at list.
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