le noun wrote:I wonder what happens once you start getting scratches and holes through the year...
Great question. We expect the kites to be used but not abused. You get one major accident a year covered for a base cost of $79 but otherwise, if the kite comes back looking like it was used for a year but well looked after there are no charges...
FWIW, we have actively re-sold used kites through a number of our dealers for years and have a very good idea of the average re-sale value of kites in various conditions of use / abuse, we priced this all into the model.
wjb wrote:Is this a lease or a purchase plan?
It's a bit of both. We figure a well cared for - but used - kite that is 1 year old re-sells for about 50% of the original MSRP. So, we give those consumers who like to roll their kites annually a chance to lease that same kite for roughly 60% of MSRP, meaning they pay less up front and save the hassle of re-sale later and pay a small premium for the service.
For those who like the kite or who wish to take 12 months to buy it there is the optional end of lease buyout that equates to a roughly 10% premium above normal MSRP. Meaning, you can take 12 months to pay for your kite or kites and pay a modest premium.
Col.kiteman wrote:Just like solar city, taking away work and profits of local businesses by using their capital to lease out their product
Far from it! Please don't think that of our company. In fact, this program was developed in conjunction with our local retailers, 100% of whom can offer this program to you!
If you wish to lease a kite, contact any one of our local retailers and we can arrange to lease to you through them. We pay the retailer a referral fee that is almost equal to what they would make if they sold the kite outright. In fact, when we 1st proposed this to our dealer base we weren't even sure it was a good idea but it was our dealers who really pushed us hard to get this program up and running in time for the spring.
If you have any questions, please shoot away. I will do my best to monitor this thread!
~ John Z - OR