Why Are Climbing Holds So Expensive?

The final price of a climbing hold is a very simple formula: 

C + P = Price

C is cost and is determined by adding up all the associated costs/expenses to produce the hold itself along with all the costs to sell the holds online via an e-commerce store. P is Profit or how much you are willing to produce the holds and run the e-commerce store for.   If you have a retail store as well, there could be another hundred more expenses not listed here.  Keep in mind that all costs listed below go up in price every year.

Here are some, but not all of the possible expenses to produce climbing holds:

Costs for Manufacturing Climbing Holds

  1. Research and Development (R&D)

    • Design Costs
    • Prototyping
    • Time
    • Designer fees
  2. Raw Materials

    • Polyurethane Resin
    • Color Pigments
    • Molds
    • Silicone
    • Foam or Clay and other materials
    • Release Agents
    • Washers
  3. Manufacturing Process

    • Casting
    • Sanding
    • Stocking Shelves
    • Quality Control
    • Replacing molds when they wear out.
    • Time
  4. Labor Costs

    • Skilled Labor
    • General Labor
  5. Equipment and Maintenance

    • Sander
    • Compressor
    • Pumps
    • Vaccuum Chamber
    • Drill Press
    • Dremel
    • Varoius hand tools
    • Maintenance of the shop
    • Computer
    • Phone
    • Printer
    • Shipping Label Printer
  6. Packaging and Shipping

    • Packaging Materials - boxes, tape etc
    • Time
  7. Warehousing

    • Storage
    • Inventory Management
  8. Marketing and Sales

    • Website and E-commerce. (detailed list below)
    • Advertising
    • Sponsorships
    • Donations
    • Social media 
    • Time associated with performing these tasks
  9. Overhead Expenses

    • Utilities
    • Rent and Property Taxes
    • Insurance: Public liability, building etc
  10. Miscellaneous Costs

    • Office Supplies
    • Employee Benefits
    • Royalty payments

Some of the Expenses of Running an E-commerce Store

Almost every aspect of running and maintaining a e-commerce store is now an ongoing monthly/yearly subscription.

Website Setup and Maintenance

  • Domain Registration - annual fee for each domain
  • SSL Certificate - annual fee for each domain
  • Web Hosting - monthly fee
  • Website Design and Development - ongoing
  • E-commerce Platform Fees - monthly fee
  • Payment Gateway Fees - percentage of every sale
  • Shipping Integration - fee for every service offered
  • Product photography - ongoing, can pay or DIY

Marketing and Advertising

  • SEO Services - ongoing
  • Content Marketing - monthly fee
  • Pay-Per-Click (PPC) Advertising - daily fee
  • Social Media Marketing - daily, monthly or weekly fee
  • Purchasing stock photos
  • Graphic design
  • Promotional materials
  • Affiliate Marketing - depends on agreement; percentage of sales, monthly, cost per click
  • Integrations to Connect Shop to Social Media - monthly fee
  • Sales Channel Integration - fees for every sales channel used (ebay, catch, amazon, bunnings etc etc etc)
  • Time to maintain and keep all of the above running

Customer Engagement

  • Email Newsletter Services - monthly fee
  • SMS Marketing - monthly fee and per txt fee
  • Customer Reviews and Testimonials - monthly fee
  • Live Chat Software - monthly fee
  • Time to produce and maintaine the above

Operational Costs

  • Inventory Management - one time fee possibly monthly
  • Shipping and Fulfillment - per item shipped
  • Packaging Supplies - monthly
  • Returns Management
  • Vehicle expenses: insurance, fuel, service, 

Technical and Administrative Costs

  • Software Licenses - annual fee
  • IT Support - per issue or monthly
  • Data Analytics Tools - free for the most part
  • Legal and Accounting Fees - annual fee

Customer Service

  • Support Staff - as required
  • CRM Software - monthly fee

Miscellaneous Costs

  • Business Insurance - monthly fee
  • Office Supplies - monthly expense
  • Employee Benefits - Super at 10% or more on top of wages


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