$80,000 to wear some goggles.

Edited Date/Time 5/30/2012 6:43pm
wow. just said it on pulpmx. thats a ball park for a guy like dean wilson. didnt say for how long. 1 year? 3? either way, holy shit.
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BD49
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5/7/2012 8:23pm
wow. just said it on pulpmx. thats a ball park for a guy like dean wilson. didnt say for how long. 1 year? 3? either way...
wow. just said it on pulpmx. thats a ball park for a guy like dean wilson. didnt say for how long. 1 year? 3? either way, holy shit.
Yea, but look at how little those things cost to make and what they sell them for......they can afford it. Smile
RealityZ
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5/7/2012 8:28pm
Dean has only won 4 Lites SX races in 3 years WOW
mx 219
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5/7/2012 8:29pm
RealityZ wrote:
Dean has only won 4 Lites SX races in 3 years WOW
I bet stew is making 250k to a million a year on goggles from Oakley
5/7/2012 8:31pm
RealityZ wrote:
Dean has only won 4 Lites SX races in 3 years WOW
mx 219 wrote:
I bet stew is making 250k to a million a year on goggles from Oakley
thats what i was just about to bring up. can you imagine him and dungeys nike contract?

i know people were always curious about this stuff. and its always so secret. so cool to finally hear a figure.

seems like the main stream sports its pretty easy to find contract figures.

The Shop

Tiki
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5/7/2012 8:36pm
Any idea on what a gear contract brings in for the teams? It makes sense why temp riders are put out there now huh?
cmess77
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5/7/2012 8:55pm Edited Date/Time 5/7/2012 9:01pm
RealityZ wrote:
Dean has only won 4 Lites SX races in 3 years WOW
RV has only won 4 MX races in 4 years WOW. Additionally, Eli Tomac and Justin Barcia have won 2 races combined, in a total of 56 races outdoors WOW.
fader418
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5/7/2012 8:56pm
RealityZ wrote:
Dean has only won 4 Lites SX races in 3 years WOW
lites SX wins mean NOTHING in the record books. His outdoor title is what matters
5/7/2012 9:12pm
SX sells more than MX i bet.
GuyB
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5/7/2012 9:13pm Edited Date/Time 5/7/2012 9:14pm
RealityZ wrote:
Dean has only won 4 Lites SX races in 3 years WOW
fader418 wrote:
lites SX wins mean NOTHING in the record books. His outdoor title is what matters
Moving the needle in sales is what really matters...and using a product that works for you.
Uncleof2
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5/7/2012 9:25pm
cmess77 wrote:
RV has only won 4 MX races in 4 years WOW. Additionally, Eli Tomac and Justin Barcia have won 2 races combined, in a total of...
RV has only won 4 MX races in 4 years WOW. Additionally, Eli Tomac and Justin Barcia have won 2 races combined, in a total of 56 races outdoors WOW.
Are you serious? WOW!!!!!!!!!!!!
mx510
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5/7/2012 9:46pm
cmess77 wrote:
RV has only won 4 MX races in 4 years WOW. Additionally, Eli Tomac and Justin Barcia have won 2 races combined, in a total of...
RV has only won 4 MX races in 4 years WOW. Additionally, Eli Tomac and Justin Barcia have won 2 races combined, in a total of 56 races outdoors WOW.
Uncleof2 wrote:
Are you serious? WOW!!!!!!!!!!!!
Try to remember Uncleof2 they are called Vitards for a reason. Brap.
disbanded
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5/7/2012 10:57pm
It's good to be fast
sharkey
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5/7/2012 11:15pm
wow. just said it on pulpmx. thats a ball park for a guy like dean wilson. didnt say for how long. 1 year? 3? either way...
wow. just said it on pulpmx. thats a ball park for a guy like dean wilson. didnt say for how long. 1 year? 3? either way, holy shit.
BD49 wrote:
Yea, but look at how little those things cost to make and what they sell them for......they can afford it. Smile
thATS STILL CRAZY HES ONLY ONE GUY
Huckster
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5/8/2012 3:17am
GuyB wrote:
Moving the needle in sales is what really matters...and using a product that works for you.
Which very few riders can actually accomplish according to the owner of one of the largest gear companies in the business...
WhKnuckle
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5/8/2012 3:35am
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors. And bonuses for performance.

And keep in mind that they'd better make it while they can. What if Wilson's shoulder problem becomes chronic and he winds up unable to ride any more? Does anyone think he's made enough money to retire at 21 or whatever, and never work again? The rule of thumb is that you can withdraw about 4% of your savings every year and assume your investment income will prevent you from running out of money - if you have managed to save one million dollars, that means you have to live on $40K/year for the rest of your life. That's not a whole lot of money. You can make investments that allow you to withdraw more, but only by taking more investment risk. Bottom line is that a rider who wants to raise a family needs at least 3 million or so in the bank to stop working completely in his 20s. That's hard to do, even when you're getting $80K/yr for a goggle contract.

People who think little Johnny is going to be financially set for life because he did good at Loretta Lynns should keep this stuff in mind.
Shenzi
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5/8/2012 5:23am
BD49 wrote:
Yea, but look at how little those things cost to make and what they sell them for......they can afford it. Smile
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture, market, distribute, grow? 15%, 18%, 20% 25%?
SteveS
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5/8/2012 5:28am
$80,000. That will buy a lot of insurance.
motosmith
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5/8/2012 8:02am
Whats the term? 80k a year is good money. 80k over 5 years, not so good.
TomZ
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5/8/2012 9:11am
BD49 wrote:
Yea, but look at how little those things cost to make and what they sell them for......they can afford it. Smile
Shenzi wrote:
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture...
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture, market, distribute, grow? 15%, 18%, 20% 25%?
I think many people read that a product can be made in China for $1.00 and they see it sold here for $20.00 and assume that the $19.00 spread is all profit.......a classic get rich quick scheme.....

I heard this argument many times about the Leatt brace......why so much, it can't cost that much to make etc. The cost to insure, develop, market etc can be an enormous upfront cost that takes years to make.

The vast majority of goggles sold are not the high zoot $90 models either. $30 is the heart of the market. How much margin can there really be on a $30 goggle ??

How many goggles have to be sold to pay a person like Bevo for what he has done to represent the sport and brand he is representing.

Take Scott as an example..... most of us associate Scott with goggles and moto. Much of their business is now focused on other sports like skiing and cycling.
BD49
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5/8/2012 9:42am
Shenzi wrote:
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture...
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture, market, distribute, grow? 15%, 18%, 20% 25%?
I have no idea how much companies spend on R&D but the manufacturing costs is very fractional. Goggle companies aren't exactly reinventing the wheel these days.Beyond adding a few vent holes and some different graphics they aren't all that much different from Goggles of 20 or more years ago.

Now if we talk other products, take that first generation RXR protector that you sent me a few of for the Chase Borders and Nick DePalo fundraisers. They were and still are state of the art and ahead of their time and I would probably pass out from seeing the R/D costs associated with bringing that to market.

Goggles though? Established companies like Oakley, Scott, Dragon make money hand over fist on their products.....I have no doubt. Also, I'm a capitalist and I hope these companies make hundreds of percentage points over their costs for profit....I just hate that so many are made in China.
5/8/2012 9:54am
This is a very interesting debate. Lot's of great points being made. Remember the amount of exposure that these companies get every time their rider is interviewed and he has his goggles hanging around his neck at the end of a race. I would love to see what happens to that companies sales on Monday mornings.
Same thing being said for gear and energy drink companies. Very smart marketing on their part. Im sure its worth well over $80,000.oo.
www.motoxchange.net
5/8/2012 9:54am
This is a very interesting debate. Lot's of great points being made. Remember the amount of exposure that these companies get every time their rider is interviewed and he has his goggles hanging around his neck at the end of a race. I would love to see what happens to that companies sales on Monday mornings.
Same thing being said for gear and energy drink companies. Very smart marketing on their part. Im sure its worth well over $80,000.oo.
www.motoxchange.net
WhKnuckle
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5/8/2012 10:02am Edited Date/Time 5/8/2012 10:02am
Shenzi wrote:
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture...
what's the cost on a pair of $90 modern goggles, landed in USA? and how much profit do companies need to make to research, develop, manufacture, market, distribute, grow? 15%, 18%, 20% 25%?
BD49 wrote:
I have no idea how much companies spend on R&D but the manufacturing costs is very fractional. Goggle companies aren't exactly reinventing the wheel these days.Beyond...
I have no idea how much companies spend on R&D but the manufacturing costs is very fractional. Goggle companies aren't exactly reinventing the wheel these days.Beyond adding a few vent holes and some different graphics they aren't all that much different from Goggles of 20 or more years ago.

Now if we talk other products, take that first generation RXR protector that you sent me a few of for the Chase Borders and Nick DePalo fundraisers. They were and still are state of the art and ahead of their time and I would probably pass out from seeing the R/D costs associated with bringing that to market.

Goggles though? Established companies like Oakley, Scott, Dragon make money hand over fist on their products.....I have no doubt. Also, I'm a capitalist and I hope these companies make hundreds of percentage points over their costs for profit....I just hate that so many are made in China.
Those goggle companies probably break even on goggles, but they make a first-degree gangland killing on sunglasses; and they presumably don't think they'll sell sunglasses unless they have top-level action athletes out there touting their brand.

My son was a big Vuilleman fan so he wears Dragon goggles. Then he went out and bought sunglasses the other day and guess what? Dragons. And expensive (to me) Dragons.
5/8/2012 10:17am
WhKnuckle wrote:
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors...
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors. And bonuses for performance.

And keep in mind that they'd better make it while they can. What if Wilson's shoulder problem becomes chronic and he winds up unable to ride any more? Does anyone think he's made enough money to retire at 21 or whatever, and never work again? The rule of thumb is that you can withdraw about 4% of your savings every year and assume your investment income will prevent you from running out of money - if you have managed to save one million dollars, that means you have to live on $40K/year for the rest of your life. That's not a whole lot of money. You can make investments that allow you to withdraw more, but only by taking more investment risk. Bottom line is that a rider who wants to raise a family needs at least 3 million or so in the bank to stop working completely in his 20s. That's hard to do, even when you're getting $80K/yr for a goggle contract.

People who think little Johnny is going to be financially set for life because he did good at Loretta Lynns should keep this stuff in mind.
Be careful there, facts are not well liked here sometimes :-)
IceMan446
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5/8/2012 10:34am
fader418 wrote:
lites SX wins mean NOTHING in the record books. His outdoor title is what matters
You have got to be shitting me?

If it doesnt matter then why are lites SX race wins and titles in the record books?

Tell KDub, Ferry, JLaw and Fonseca their championships mean nothing.

The record for dumbass comments and posts on Vital have gone up drastically as of late.
MXER231
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5/8/2012 11:36am
WhKnuckle wrote:
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors...
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors. And bonuses for performance.

And keep in mind that they'd better make it while they can. What if Wilson's shoulder problem becomes chronic and he winds up unable to ride any more? Does anyone think he's made enough money to retire at 21 or whatever, and never work again? The rule of thumb is that you can withdraw about 4% of your savings every year and assume your investment income will prevent you from running out of money - if you have managed to save one million dollars, that means you have to live on $40K/year for the rest of your life. That's not a whole lot of money. You can make investments that allow you to withdraw more, but only by taking more investment risk. Bottom line is that a rider who wants to raise a family needs at least 3 million or so in the bank to stop working completely in his 20s. That's hard to do, even when you're getting $80K/yr for a goggle contract.

People who think little Johnny is going to be financially set for life because he did good at Loretta Lynns should keep this stuff in mind.
So the average US income is $44,000 a year. That means you could live off a million for the rest of your life. If I could
Get paid $25,000 a year to race I would take that. The factory guys have it made. Let them get a real job and only get
to ride on the weekends and see how they like it. These companies should spread the wealth among the riders instead
of having one overpaid rider.
mom241
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5/8/2012 12:08pm
That figure is way high, IMHO.
Shenzi
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5/8/2012 12:14pm
MXER231 wrote:
So the average US income is $44,000 a year. That means you could live off a million for the rest of your life. If I could...
So the average US income is $44,000 a year. That means you could live off a million for the rest of your life. If I could
Get paid $25,000 a year to race I would take that. The factory guys have it made. Let them get a real job and only get
to ride on the weekends and see how they like it. These companies should spread the wealth among the riders instead
of having one overpaid rider.
I wish I could live well on $25K per year, have a family, 2 or 3 kids, buy a dirt bike, have 1 or 2 mountain-bikes in the garage, travel once or twice a year for a short 2 or 3 days break, pay for medical insurance, go to the movies, maybe once a month and save enough to have a decent retirement. On $25,000 per year. My dream, where do I sign...
5/8/2012 12:29pm
i am surprised one of the "they should give the money to the privateers " bleeding hearts hasn't chimed in on this one. Evil
WhKnuckle
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5/8/2012 12:33pm
WhKnuckle wrote:
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors...
I don't think riders make as much as people think from the factories; I think they make it from gear, goggle, energy drinks, and outside sponsors. And bonuses for performance.

And keep in mind that they'd better make it while they can. What if Wilson's shoulder problem becomes chronic and he winds up unable to ride any more? Does anyone think he's made enough money to retire at 21 or whatever, and never work again? The rule of thumb is that you can withdraw about 4% of your savings every year and assume your investment income will prevent you from running out of money - if you have managed to save one million dollars, that means you have to live on $40K/year for the rest of your life. That's not a whole lot of money. You can make investments that allow you to withdraw more, but only by taking more investment risk. Bottom line is that a rider who wants to raise a family needs at least 3 million or so in the bank to stop working completely in his 20s. That's hard to do, even when you're getting $80K/yr for a goggle contract.

People who think little Johnny is going to be financially set for life because he did good at Loretta Lynns should keep this stuff in mind.
MXER231 wrote:
So the average US income is $44,000 a year. That means you could live off a million for the rest of your life. If I could...
So the average US income is $44,000 a year. That means you could live off a million for the rest of your life. If I could
Get paid $25,000 a year to race I would take that. The factory guys have it made. Let them get a real job and only get
to ride on the weekends and see how they like it. These companies should spread the wealth among the riders instead
of having one overpaid rider.
By definition, riders are not overpaid. They're paid market value, which might be a lot of money and it might not be enough to keep body and soul together without help from parents. And a $40K/yr worker is actually getting paid more like $60K when you count benefits - not to mention the fact that a rider who makes LOTS of money would take a while to wind up with one million free and clear in the bank after taxes. That's a lot of money to save over just a few years, and earlier years in a riders' career are the lower paying ones. I remember RC saying he made less than $100K his first couple of years.

The point is, people often look at big dollars that the top guys make (like a rumored $80K goggle deal even if you believe that number), look at little Johnny blowing everyone's doors off in the 250C class at Loretta's and assume he's going to be set for life in a few years. They need to re-think that. Maybe little Johnny really will hit it big, but the odds are way against it.

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