Down is the new up!

[tim]

Interesting article in the Wall St Journal about the rising price of down:
http://online.wsj.com/article/SB1000142 ... 10514.html

Looks like it's time to stock up (I'm glad I just bought my new sleeping bag with the last REI 20% discount and my dividend) . The numbers below would imply to me that retail price of a higher end sleeping bag containing ~2 pounds of down could go up as much as $80, though competition might limit price rises to say 10%-15%.

Key quotes:
"The North Face, an outdoor brand...that is famous for its down-filled jackets, is expecting to raise the price of its down products for the first time in five years, said VF Chief Executive Eric Wiseman."

"A pound of white goose down that cost about $12 in 2009 sells for around $28 today. Prices of other down varieties and grades also have increased. Duck down, around $9 a pound in 2009, now costs about $19 a pound."

"Columbia Sportswear Co...created a new, synthetic insulation product in 2010 before it became apparent how much the cost of down would rise. Now, the company will try to use it more in product designs, said Matthew Hoeferlin, director of materials. Mr. Hoeferlin said higher-end outdoor jackets and sleeping bags that use white goose down will see retail prices rise. Now planning its fall 2013 assortment, Columbia will likely pass some of the increase along, he said."

[Hobbes]

You can still get the M50 down quilt kit from T-H for the same price I got it back in December:

http://thru-hiker.com/kits/

Note that his kit includes 12 oz of 900FP - he imports it from Europe & provides a certificate in the packing manifest.

It's not just the price of down that's going up - actually, nothing is going up, it's (freshly printed out-of-thin-air) dollars which are rapidly losing value, hence reduced portions and/or price increases.

As for the quilt kit, for $170, it's a pretty sweet deal to have a 25 degree down quilt that weighs around 17 ounces. (Yes, the M50 liner/shell only weighs 5 oz, and mine is slightly oversized. I've seen reports of people building even lighter summer quilts.)

[Wandering Daisy]

I read the article this morning too. Now is a good time to buy. I also think that other gear is going to increase in price. Prices have been kept a bit low during the down-turn. They have to raise sometime. This may have a big impact on sleeping bags where the raw material (down) is high. However, in a down sweater, where the amouont of down is small, the labor costs would be more of a factor in price increase- unless this is used as an excuse to raise prices of ALL down gear. You are still paying primarily for brand name, labor and marketing.

[gary c.]

If anyone has been thinking about buying a down sweater of jacket now is definately the time to do so. It seems like all of the manufacturers/retailers have been giving some very good discounts the last couple of months.

[FISHPOLE]

Thanks for the hot tip Gary C.

[oldranger]

Let me get this straight. the cost of Down is $28 dollar a pound. A down sweater has maybe 5-8 oz of down but they cost anywhere from $80 to $200+and an increase in the cost of down is going to raise the cost of the sweater significantly? At $40 a pound the cost of down would not be the biggest portion of the cost.The increase in cost certainly won't make me rush out to buy an old (new) one unless I was in dire need of one (which I am not). Wait until people in third world countries start making a living wage and see what that will due to the cost of down products!

Mike

[tim]

Let me get this straight. the cost of Down is $28 dollar a pound. A down sweater has maybe 5-8 oz of down but they cost anywhere from $80 to $200+and an increase in the cost of down is going to raise the cost of the sweater significantly?

A decent rule of thumb would be that the wholesale cost (i.e. what North Face sell it to REI for) is double the raw material cost (that covers North Face marketing, staff, profits, etc.). Obviously there's a lot of variation depending on brand vs no-name etc. Then REI's retail list price is double again (that covers REI's stores, staff, etc.). So if the price of down has gone up $16 per pound and you have 8oz in a sweater, that's $8 in material costs but say ~$30 at retail. Not huge but not insignificant even in a $200 item.