Dignics and its Effect on Sales of Tenergy and Rozena

[zeio]

Butterfly's mid-range blades have better cost-to-performance ratio now?

理性讨论，张继科对蝴蝶的影响有多大？ (Fair discussion, how much effect did ZJK have on Butterfly?)
https://tieba.baidu.com/p/9355862260
贴吧用户_JR8C3eV 记得张继科之前的时代，也就是纯木时代。吧里讨论底板是百花齐放的，现在除了一个968，基本蝴蝶一家独大了。这是蝴蝶的纤维技术独步天下，还是张继科用维斯带来的蝴蝶效应
IP属地:山东来自Android客户端1楼2024-12-24 09:07回复
(I remember the era before ZJK, which was the era of all-wood. In Tieba, there were discussions for all kinds of blades. Now, except for 968, Butterfly is basically a monopoly. Is it because Butterfly's composite technology is unique in the world, or is it the Butterfly Effect brought about by ZJK's use of Viscaria?)

无限の魔术师 关键是蝴蝶的板子真的好打啊，而且绝大多数的中端价位板子，性价比和性能都高过其他家。挺拔多尼克斯蒂卡尼塔库红大妈中端价位德板子，不管选择性还是性能，大多数都不如蝴蝶
IP属地:辽宁来自Android客户端4楼2024-12-24 11:56收起回复
(The key is that Butterfly blades are really great to play with, and most of the mid-range blades have higher cost-to-performance ratio and performance than other brands. Most of the mid-range blades of Tibhar, Donic, Stiga, Nittaku and Red Aunt [DHS] are not as good as Butterfly in terms of selection and performance.)
无限の魔术师: 700-1000价位
2024-12-24 11:56回复
700-1000 price range [~US$96-137]
侧身倒地不爆冲: 我430买的蝴蝶勇气 这个价位在红大妈基本买不到什么东西
2024-12-24 13:08回复
(I bought Butterfly Strave for 430. You can hardly buy anything at this price from Red Aunt [DHS])
贴吧用户_JR8C3eV: 花一千买个蝴蝶，和国家队器材没啥太大区别。但是买个红双喜那就完全不是一种东西
2024-12-24 13:56回复
(Spending a thousand dollars to buy a Butterfly is not much different from the CNT equipment. But buying a DHS is a completely different thing)

胡尔莫斯 张继科那时候蝴蝶纯木很普通，反而这几年纯木开始火爆。张继科以前蝴蝶纤维就很热门，那时候波a，泰克西姆，inn系列还有t5000很多热门，张继科以后也有很多运动员给vis提供热度。
IP属地:广西来自Android客户端5楼2024-12-24 14:46回复
(Butterfly all-wood was no big deal back in ZJK's time, but all-wood has become the talk of the town in recent years. Butterfly composite was already very popular before ZJK, and at that time, Boll ALC, Taksim, Innerforce series and T5000 were very popular. After ZJK, many athletes also boosted the popularity of Viscaria.)

 

[ThePongCommenter]

Butterfly's mid-range blades have better cost-to-performance ratio now?

理性讨论，张继科对蝴蝶的影响有多大？ (Fair discussion, how much effect did ZJK have on Butterfly?)
https://tieba.baidu.com/p/9355862260
贴吧用户_JR8C3eV 记得张继科之前的时代，也就是纯木时代。吧里讨论底板是百花齐放的，现在除了一个968，基本蝴蝶一家独大了。这是蝴蝶的纤维技术独步天下，还是张继科用维斯带来的蝴蝶效应
IP属地:山东来自Android客户端1楼2024-12-24 09:07回复
(I remember the era before ZJK, which was the era of all-wood. In Tieba, there were discussions for all kinds of blades. Now, except for 968, Butterfly is basically a monopoly. Is it because Butterfly's composite technology is unique in the world, or is it the Butterfly Effect brought about by ZJK's use of Viscaria?)

无限の魔术师 关键是蝴蝶的板子真的好打啊，而且绝大多数的中端价位板子，性价比和性能都高过其他家。挺拔多尼克斯蒂卡尼塔库红大妈中端价位德板子，不管选择性还是性能，大多数都不如蝴蝶
IP属地:辽宁来自Android客户端4楼2024-12-24 11:56收起回复
(The key is that Butterfly blades are really great to play with, and most of the mid-range blades have higher cost-to-performance ratio and performance than other brands. Most of the mid-range blades of Tibhar, Donic, Stiga, Nittaku and Red Aunt [DHS] are not as good as Butterfly in terms of selection and performance.)
无限の魔术师: 700-1000价位
2024-12-24 11:56回复
700-1000 price range [~US$96-137]
侧身倒地不爆冲: 我430买的蝴蝶勇气 这个价位在红大妈基本买不到什么东西
2024-12-24 13:08回复
(I bought Butterfly Strave for 430. You can hardly buy anything at this price from Red Aunt [DHS])
贴吧用户_JR8C3eV: 花一千买个蝴蝶，和国家队器材没啥太大区别。但是买个红双喜那就完全不是一种东西
2024-12-24 13:56回复
(Spending a thousand dollars to buy a Butterfly is not much different from the CNT equipment. But buying a DHS is a completely different thing)

胡尔莫斯 张继科那时候蝴蝶纯木很普通，反而这几年纯木开始火爆。张继科以前蝴蝶纤维就很热门，那时候波a，泰克西姆，inn系列还有t5000很多热门，张继科以后也有很多运动员给vis提供热度。
IP属地:广西来自Android客户端5楼2024-12-24 14:46回复
(Butterfly all-wood was no big deal back in ZJK's time, but all-wood has become the talk of the town in recent years. Butterfly composite was already very popular before ZJK, and at that time, Boll ALC, Taksim, Innerforce series and T5000 were very popular. After ZJK, many athletes also boosted the popularity of Viscaria.)

Nowadays, the going rate for a premium blade from any brand is anywhere from 130-180 dollars/Euros on average. So why would someone not go for a TBALC/FZD ALC/Viscaria/Ovtcharov/Harimoto ALC which all cost basically the same price as their "competition"?

 

[haggisv]

More updates. Butterfly Europe also had a fantastic 2023, with an increase of 9% in sales and over 50% in profit compared to 2022, which was already record breaking.

I wonder how they increased their profit by 50% with only 9% increase in sales? Reducing their costs, increasing their prices, better exchange rate?

 

[Amayzde]

Nowadays, the going rate for a premium blade from any brand is anywhere from 130-180 dollars/Euros on average. So why would someone not go for a TBALC/FZD ALC/Viscaria/Ovtcharov/Harimoto ALC which all cost basically the same price as their "competition"?

I couldnt agree more. People are still complaining about Butterfly being too expensive. Other brands are now putting out rubbers that cost €65-80. Meanwhile Tenergy still costs €60.

 

[zeio]

I wonder how they increased their profit by 50% with only 9% increase in sales? Reducing their costs, increasing their prices, better exchange rate?

All of them add up to profit, but sales are still the deciding factor because they are typically the greatest value. For example, sales decreased by 3.4% and profit dropped by 30% in 2020 due to the pandemic.

 

[NextLevel]

The materials that go into rubbers are relatively cheap so the marginal return on sales is likely very high while things like marketing and manufacturing are likely largely fixed costs with the incremental costs of materials relatively low vs what users pay for the rubbers.

 

[JJ Ng]

I wonder how they increased their profit by 50% with only 9% increase in sales? Reducing their costs, increasing their prices, better exchange rate?

If you don't own your own business, it is harder to understand the concept. Let us just say the profit is 18% of the total sales (say $18 out of $100 in terms of sales is pure profit). So if the sales increase by 9% (i.e. go from $100 to $109 in total sales) while costs remain the same (kind of impossible with all the inflation going on but let us assume that) then profit does go up by 50% ($18 per $100 of sale in terms profit last year v.s. $27 per $109 of sales in terms of profit this year).

As for Butterfly rubbers, I am not so enamored with them. Recently I started experimenting with Butterfly inner ALC and inner ZLC and the experiment is so far so good. I still need to figure out the exact blade but I am not competing any time soon.

 

[Sims]

If you don't own your own business, it is harder to understand the concept. Let us just say the profit is 18% of the total sales (say $18 out of $100 in terms of sales is pure profit). So if the sales increase by 9% (i.e. go from $100 to $109 in total sales) while costs remain the same (kind of impossible with all the inflation going on but let us assume that) then profit does go up by 50% ($18 per $100 of sale in terms profit last year v.s. $27 per $109 of sales in terms of profit this year).

As for Butterfly rubbers, I am not so enamored with them. Recently I started experimenting with Butterfly inner ALC and inner ZLC and the experiment is so far so good. I still need to figure out the exact blade but I am not competing any time soon.

The greatest use of made up numbers I've seen in quite a while...
I think most of us understand the concept of percentages and that 27 is 50% greater than 18.

The question was wondering what Butterfly actually did that resulted in the 50% profit jump, not a failure to understand basic mathematics 😂

 

[Brs]

The greatest use of made up numbers I've seen in quite a while...
I think most of us understand the concept of percentages and that 27 is 50% greater than 18.

The question was wondering what Butterfly actually did that resulted in the 50% profit jump, not a failure to understand basic mathematics 😂

Okay, I'll try with words.

Businesses have sales, and they have fixed costs and variable costs.

Fixed means regardless of how much they sell, they pay these costs. Think about factories, salaries for employees you won't fire, interest on debts, sponsorship contracts to license a player's name.

Variable costs vary with the amount of product you sell. So if butterfly sells more blades, they buy more ALC, pay for more Bty clothes to be made, and spend more on shipping stock to stores.

There is a very wide range of fixed to variable cost ratios that a profitable business can have. Grocery stores are famous for having very high variable costs. They have to buy more food for every food they sell. Software and internet companies have almost zero variable costs. They don't distribute anything physical at all. Once Facebook exists, Google exists, MS Office, it costs them almost nothing to add one more user.

Butterfly Europe was profitable in 2022 already. So the value of sales covered all their fixed costs, and all the variable costs, and then a little something was left after they paid all expenses. This is the meaning of profitable.

In 2023 sales increased 9%. Fixed costs did not increase 9%. Why, you ask? Because they are fixed, and do not increase in line with sales volume. If you have a blade factory running at 70% of its maximum capacity and you increase that to 77%, there is no added cost for having the factory. You already have it.

Variable costs will have increased. By definition those vary with sales. But in this pingpong business variable must be a small percentage of overall costs.

Adding more sales without a corresponding increase in costs (because they are mostly fixed) leads to big percentage increases in profit. This is particularly true when margins are thin, meaning the previous years sales only just covered all expenses with a small profit. We can assume this was the case for Bty Europe in 2022 coming out of the pandemic.

Profits cannot forever continue to increase 50% on 9% sales increases. If they did then profits would soon be greater than sales. This does not happen.

Did that help at all?

 

[Sims]

Okay, I'll try with words.

Businesses have sales, and they have fixed costs and variable costs.

Fixed means regardless of how much they sell, they pay these costs. Think about factories, salaries for employees you won't fire, interest on debts, sponsorship contracts to license a player's name.

Variable costs vary with the amount of product you sell. So if butterfly sells more blades, they buy more ALC, pay for more Bty clothes to be made, and spend more on shipping stock to stores.

There is a very wide range of fixed to variable cost ratios that a profitable business can have. Grocery stores are famous for having very high variable costs. They have to buy more food for every food they sell. Software and internet companies have almost zero variable costs. They don't distribute anything physical at all. Once Facebook exists, Google exists, MS Office, it costs them almost nothing to add one more user.

Butterfly Europe was profitable in 2022 already. So the value of sales covered all their fixed costs, and all the variable costs, and then a little something was left after they paid all expenses. This is the meaning of profitable.

In 2023 sales increased 9%. Fixed costs did not increase 9%. Why, you ask? Because they are fixed, and do not increase in line with sales volume. If you have a blade factory running at 70% of its maximum capacity and you increase that to 77%, there is no added cost for having the factory. You already have it.

Variable costs will have increased. By definition those vary with sales. But in this pingpong business variable must be a small percentage of overall costs.

Adding more sales without a corresponding increase in costs (because they are mostly fixed) leads to big percentage increases in profit. This is particularly true when margins are thin, meaning the previous years sales only just covered all expenses with a small profit. We can assume this was the case for Bty Europe in 2022 coming out of the pandemic.

Profits cannot forever continue to increase 50% on 9% sales increases. If they did then profits would soon be greater than sales. This does not happen.

Did that help at all?

Maybe ask someone else, I only read the last line.

 

[ThePongCommenter]

An important consideration here is that Butterfly owns their means of production and ESN companies do not.

 

[zeio]

They get volume discounts for buying in bulk and use currency hedging to manage fluctuating exchange rates, with both sometimes canceling out and even reducing the higher costs that come with the higher sales.

At that point, it's not just about manufacturing table tennis products anymore. It's about having killer products up your sleeve that you've developed several years beforehand and releasing them down the road at the proper moment by making the right forecasts.