newyddion
Well-known member
Because they don’t cost £50 to make
Club shop
- Thread starter Peterc2141
- Start date
They don't even cost £5 to make
newyddion
Well-known member
It wouldn’t surprise me
The club isn't making them.
Malaguena
Well-known member
I’m old enough to remember that Alfe-Inge was playing for Man City when he was assaulted by a Keane, not Leeds …. but yes, Haaland junior was born in Leeds when his Dad played there
newyddion
Well-known member
No.. my mistake. I should have been more specific. I should have been much clearer to avoid any confusion. My point was probably lost on a few here. Sorry guys.
What is your point? You've lost me (seriously - I'm not being sarcastic).
newyddion
Well-known member
When I said that they don’t cost £50 to make.. I should have specified that the club do not make the shirts.
Also the £50 does not take into consideration any other costs.. such as retail staff, promotion or delivery etc.
Errea are basically keeping down the cost of shirts for EFL clubs by cutting out the retailer. When Sheffield United were in the Premier League last season their Errea shirts were £79.99 in sports shops. This year they are £55 through their club shop, the same as Boro. The £25 difference is last season's retailer's cut. At £55, by the time you've taken off the manufacturing and distribution costs and Errea's cut there can't be much more than £5 left.
Do you really believe that is true for something which costs a couple of pound to make and ship in bulk, fake shirts of similar quality are freely available for £13 and that is still making someone a profit, I can’t believe errea are making £37 profit on top.
It's nonsense. There's no way they only make £5. The training top is £20 and the difference in manufacturing costs between the two is not £20. There'll be a chunky profit margin in that as well.
I've said it before but people have seen a breakdown of how much a team like Man Utd make per shirt and assumed that ours is the same when it isn't. They make £5 per shirt but they also get paid £200m up front so their actual profit per shirt is way higher. We don't have the same deal with Errea. We make our profit by selling at a high margin.
viv_andersons_nana
Well-known member
If Boro sell 10,000 shirts, they only make £50,000 from that? Surely that’s not right. And surely it would mean Errea were absolutely minted.
You’d also wonder where the money goes from the Errea T-shirts and coats ordinarily sold for £25 or £50 but then increased to £50 and £90 when they’ve ironed a Boro badge on them.
You’d also wonder where the money goes from the Errea T-shirts and coats ordinarily sold for £25 or £50 but then increased to £50 and £90 when they’ve ironed a Boro badge on them.
But we're not Manchester United. Manchester United's profit per shirt is way higher because the volume of their shirts that are sold across the world each year generates a massive turnover for the manufacturer. In 2021/22, 2.5 million United shirts were sold. United get £90 million up front, which works out at £36 per shirt. Add on the £5 and you're left with £39 from an £80 shirt for the manufacturer, costs etc.
If you allow, say, £25 for VAT, distribution costs, the cost of making them, a cut for the retailer etc, that's £14 for Adidas, which is £35 million for 2.5 million shirts. Adidas are paying United a lot because it's allowing them to make a sizable sum too.
The average Championship club sells about 10,000 shirts per season. Errea are going to want a lot more than £14 per shirt because the volume is a fraction of United's shirt sales. Even if they made £25 per shirt that's only £250,000 of revenue. By the time you've added on manufacturing and distribution costs etc (say, £22 because the VAT is less, although the VAT alone is over £9 on a £55 shirt) there's still not a huge amount left for Boro. The idea that Boro are making huge sums from a high margin on shirt sales doesn't add up. What they will in reality be getting is a royalty on each shirt sale for allowing Errea to use their intellectual property.
The reason they are annoyingly difficult to buy is that sports shops are not going to sell them because the cut the retailer would want would make them too expensive (and retailers wouldn't sell enough to make it worth their while anyway) and Errea don't want to sell them on their website because they wouldn't sell enough to make it worth their while to hold stock and risk not selling it. For Errea, it makes sense for them only being sold through the club shop because they are effectively guaranteeing themselves a buyer for each shirt that's manufactured and shifting the risk of them not selling on to Boro and Boro are not ordering large numbers because their margin isn't big enough to risk being left with unsold stock.
People criticise the club shop but it's never going to change until millions of people around the world decide to support Boro.
(I'm probably over-simplifying the figures for the purposes of the argument because I imagine you'd have to take into account training gear etc).
Andythetouch
Well-known member
Do you work for the club? this is the same type rubbish they come out with.
Why are we the only club with this issue then? why don't QPR and Millwall have limited amount of stock on kits if they aren't making barely any money on it.
Errea also aren't Nike or Adidas they are a family run sports brand, their model is doing more bespoke ranges for clubs that Nike and Adidas don't care about. They don't expect to make millions from each club they deal with, but if they make 100k/200k off each club they deal with it build into a decent business, plus all the other sports they do in Europe.
How much do you reckon we make per shirt?
Andythetouch
Well-known member
Pure guess work but I'd estimate we should be paying for £14/15 mark per item for it made and delivered into the UK.
We have very few overheads once in the UK. Storage cost absorbs into the running of the stadium, Staff costs etc will be a small factor. VAT of £9 but only adults kits, no VAT on any of the kids kits so the club should be making between around 25 quid per shirt I would think.
Obviously this is guess work and we might be shooting ourselves in the foot with the low buy model, as higher initial volumes would reduce down the cost price but this is the club decision.
Edit- Sorry didn't mean to come across aggressive towards you McMordie in my 1st response!
We have very few overheads once in the UK. Storage cost absorbs into the running of the stadium, Staff costs etc will be a small factor. VAT of £9 but only adults kits, no VAT on any of the kids kits so the club should be making between around 25 quid per shirt I would think.
Obviously this is guess work and we might be shooting ourselves in the foot with the low buy model, as higher initial volumes would reduce down the cost price but this is the club decision.
Edit- Sorry didn't mean to come across aggressive towards you McMordie in my 1st response!
Last edited:
Hi Andy.
Thanks for saying that, although I wasn't offended by your 1st response at all. We're all adults and it's an interesting conversation. I'm not an expert and I could be completely wrong and you could be right.
One point I would make is that all I'm talking about is the amount I believe Boro will make from each individual shirt sale, because that's the relevent issue with regard to how many shirts the club shop orders.. There was a report a few years ago that said that league clubs whose shirts were selling for £49.99 were getting about £3 of that from each shirt sale and I think that £5 is still a realistic figure for us. I'm not saying however that I think that that's all that Boro are getting from the arrangement. I think that Errea will be giving us a bigger cut overall but that the extra is structured as sponsorship (they are club sponsors as well as shirt suppliers and their branding is on Boro Live streams, pitch side hoardings etc.).
I think the arrangement will be that Errea are saying "We'd like to supply your shirts and we'll give you a royalty payment of c£5 per shirt that's sold in return for a licence to use your badge etc on our product. To get you on board and make it worthwhile for you, if you grant us the licence we'll also be club sponsors, for which we'll pay you £x".
I don't think the "sponsorship" part will depend on the number of shirts sold. Part of the reason it will be structured like that is because the "sponsorship" guarantees Boro a minimum amount from the arrangement with Errea. If what we got from the relationship was totally dependent on the number of shirts sold you could theoretically have a situation where no one bought a Boro shirt and the club ended up with nothing.
I agree, therefore, that if you average out what Boro receive in total across the number of shirts sold it will come to more than £5, I'm just saying that I think that the part that is dependent on individual shirt sales and relevant to the club shop's decision about how many unsold shirts to risk being stuck with will be about that.
I'd doubt whether the overall amount will work out at anywhere near £25 though. If you work it backwards, if the shirt produces £46 after the VAT (good point about there being no VAT of children's shirts) if Boro were taking £25, that would leave £21 for manufacturing, delivery and Errea's cut, which I don't think would earn Errea enough to make it worthwhile.
I think, therefore, that you and I are probably not as far apart in the figures as previous posts might suggest, I just think it will be structured differently to how you think it is, which impacts on the club shop's approach.
Thanks for saying that, although I wasn't offended by your 1st response at all. We're all adults and it's an interesting conversation. I'm not an expert and I could be completely wrong and you could be right.
One point I would make is that all I'm talking about is the amount I believe Boro will make from each individual shirt sale, because that's the relevent issue with regard to how many shirts the club shop orders.. There was a report a few years ago that said that league clubs whose shirts were selling for £49.99 were getting about £3 of that from each shirt sale and I think that £5 is still a realistic figure for us. I'm not saying however that I think that that's all that Boro are getting from the arrangement. I think that Errea will be giving us a bigger cut overall but that the extra is structured as sponsorship (they are club sponsors as well as shirt suppliers and their branding is on Boro Live streams, pitch side hoardings etc.).
I think the arrangement will be that Errea are saying "We'd like to supply your shirts and we'll give you a royalty payment of c£5 per shirt that's sold in return for a licence to use your badge etc on our product. To get you on board and make it worthwhile for you, if you grant us the licence we'll also be club sponsors, for which we'll pay you £x".
I don't think the "sponsorship" part will depend on the number of shirts sold. Part of the reason it will be structured like that is because the "sponsorship" guarantees Boro a minimum amount from the arrangement with Errea. If what we got from the relationship was totally dependent on the number of shirts sold you could theoretically have a situation where no one bought a Boro shirt and the club ended up with nothing.
I agree, therefore, that if you average out what Boro receive in total across the number of shirts sold it will come to more than £5, I'm just saying that I think that the part that is dependent on individual shirt sales and relevant to the club shop's decision about how many unsold shirts to risk being stuck with will be about that.
I'd doubt whether the overall amount will work out at anywhere near £25 though. If you work it backwards, if the shirt produces £46 after the VAT (good point about there being no VAT of children's shirts) if Boro were taking £25, that would leave £21 for manufacturing, delivery and Errea's cut, which I don't think would earn Errea enough to make it worthwhile.
I think, therefore, that you and I are probably not as far apart in the figures as previous posts might suggest, I just think it will be structured differently to how you think it is, which impacts on the club shop's approach.
Back in the mad days of Juninho/new stadium etc, I know that Adidas and errea presented their ideas for the new shirt to Boro and errea won the bid, as they paid more to Boro (don't know if up front or per shirt).
I do know that errea then copied the Adidas design (gold/green based on South Africa colours) as Boro much preferred it to the errea design.
I do know that errea then copied the Adidas design (gold/green based on South Africa colours) as Boro much preferred it to the errea design.
jeff_potato
Well-known member
Perhaps it's just time that the club gets in touch with these DH Gate merchants and does a legitimate deal with them. They deliver faster, cheaper and with whatever size you want.
On a side note, a university team mate had a relative who worked for Kappa on kit deals and we got full kits, blank canvas style, for a 7 a side team which were about a tenner cost price, albeit it nearly twenty years ago.
On a side note, a university team mate had a relative who worked for Kappa on kit deals and we got full kits, blank canvas style, for a 7 a side team which were about a tenner cost price, albeit it nearly twenty years ago.
It is really, really obvious that this isn't the situation. Any situation where the profit per shirt is going to the manufacturer would see them being able to sell the shirt wherever they wanted and they'd be doing whatever they could to sell as many as possible. It is quite clear by the fact that we make small orders in bulk that we are paying a price per order and we make the profit when we sell them. Another good indicator is the fact we're terrified to sell kit at half price at the end of the season. If Errea were the ones making big profits per shirt then we wouldn't care if we were selling them at half price because we'd have already received our income from Errea. It seems obvious to me that we have gone for the minimum cost production where we are not a priority customer and we can only order in bulk to get the lowest unit cost which maximises our margin from sales in our club shop. We could probably get better service from Errea by paying a higher unit cost for different service levels (lead time, order size etc) but we're fixated on margin instead of volume.