The competition in the anchor market is fierce. They are competitive priced, once one takes into consideration the cost needed to start production. Most people, who have never been in business, have no clue how much that is, and how many anchors must be sold
(at wholesale prices) to make that cost back--and that's not even profit, that's just to get capital and start up costs back.
I'm guessing that the largest markup is from manufacturer to retailer. West Marine, for example, will refuse to carry an anchor unless they make enough revenue to cover their overhead, including advertising budget
, and earn a profit. The manufacturer has no control over WM's overhead and advertising budget
It's one thing to make one or two anchors. But it's another thing altogether to start making thousands of them, and then having to pay for inventory costs, storage
, transportation, marketing
(to retailers), etc. Sure there might be some economy of scale making thousands of anchors, but many times a lot of that is eaten up by other costs which can be avoided by the backyard operator.
If there were a way for somebody to clean up with a good performing anchor at rock bottom prices, you would think it would have been done by now. The Claw
knockoff is the only anchor coming close, and it's fairly brittle. Shoot, the Chinese themselves would have attacked this market if the opportunity was as ripe as some here make it out to be. But they haven't. They only do contract work
only and let others suffer the hazards of competing in the anchor market. The reason is because the market is fairly small and competitive, and the margins are pretty low.