Why Are Anchors so Expensive ?

[tager]

Most anchors are hot dip galvanized steel. They usually employ various popular metalworking techniques like stamping, welding, and forging. They are usually mass produced in huge production runs.

Cheap material, cheap production. Why are anchors so expensive?

It seems like the research and development going into anchors these days is not very extensive. I see more budget going to maintaining some kind of mythology of superiority than to manufacturing a superior product.

So why are anchors so expensive?

[David M]

Anchors are in a way your insurance. Not that outrageous prices are justified but its comforting to know your anchor was not manufactured by some shade tree welder where you have no idea of the quality, possibly putting your boat up on the beach. For many, that reassurance is worth the additional cost.

Also, high quality anchors are not made of cheap steel.

[tager]

For example. Similar CQR, DELTA, and CLAW anchors are $650, $250, and $100 respectively. What makes one so much better than the others?

I am sure that the cost of manufacturing any of these is under $50.

[Orion Jim]

I fully agree that most anchors are overpriced. The handfull which are well built and designed to perform as advertised within their specialized applicability (some excell in certain bottom conditions, some are more flexible) are worth every penny. They only show their true value when your life depends upon them. Were millions sold every year the price would drop dramatically but that would imply that my favorite cruising grounds would look like your average interstate during the morning rush. I would rather pay a few extra bucks and limit the congestion in the anchorages.

[hummingway]

First thing I learned is that if it has an anchor on it the cost doubles ... phht you don't even have to put an anchor on an anchor!!!!

[Redcoat]

80 %of them never are used.If you buy from west marine expect to pay a lot of money.If you sit back and wait you can buy them all day long for 20 cents on the dollar.Change your shopping habits.

[craigsmith]

Originally Posted by tager

Most anchors are hot dip galvanized steel. They usually employ various popular metalworking techniques like stamping, welding, and forging. They are usually mass produced in huge production runs.

Cheap material, cheap production. Why are anchors so expensive?

Which anchors?

There are expensive anchors (CQR which is drop forged) and cheap anchors (rubbish claw copies which can shatter like so much glass when dropped on a concrete floor). Generally you get what you pay for. The market is very competitive and retail prices do not have much fluff in them.

If I gave you the plans for a fabricated Rocna and you walked into a metal working outfit, they could not produce you one for any less than the retail price down the road at West Marine or wherever.

[tager]

Craig, I believe you. However, if one were to set up a factory in China to do the same thing, it seems that they could be produced for a much lower cost.

The Delta is 252 dollars. 3 peices. 3 welds. 5 brake lines.

The Rocna is 424 dollars. 3 peices. 4 welds. 2 brake lines. 1 tubing bend

I believe I have demonstrated that production costs are similar for these products.

Why does the Rocna cost more? Is it really that the Rocna has a larger R & D budget? Or is it a marketing move? Is it part of creating a myth of superiority?

I don't see a lot of impartial tests with reasonably large data sets.

You would think with prices like that, you could get some serious R&D done.

Let's take a look at other mass produced metal things you can get for $424 dollars.

7 of these. They are low quality, but they are 25 lbs. They are representative of what metalwork costs. Even with higher quality steel, better welds, higher paid workers, superior galvanizing, etc. Could the cost be 7 times higher to produce them? No.

So where does the money go? The lower volume of designer anchors may explain higher retail price. The larger R&D budgets may explain higher retail price. Superior construction may explain higher price.

But 7 times higher? Tell me again that there is no fluff.

I just don't get it. It seems like I should get into the anchor business!

[craigsmith]

Your Delta example is reasonable in such a simplistic context but you are inviting a comparison of the Rocna and Delta production quality which I can't really answer without getting into trouble with the mods. Sorry.

The cheap Danforth thing is way off, apples and oranges.

If there was fluff then imitators like Manson would be able to heavily undercut Rocna, competing as they do on a more or less purely cost basis. They manage a little but it's not drastic - and compensated for on a simple performance (weight-for-weight) basis anyway, quality notwithstanding...

[tager]

Thank you for being so evenhanded with your treatment here Craig. I know I am a pain, if not a troll. I will have to investigate said disparities personally.

[Sandero]

I have no idea what goes into the cost of an anchor, but the questions raised have not been answered. No manufacturer is going to willingly open their books. And there are other costs in bringing a product to market aside from raw material and fabrication.

Having said that there has to be an explanation for the relatively high cost for a relatively simple to manufacture product which seems to have such a high cost.

Take something like a dormor mooring anchor. The retail cost is about $1 / pound yet pig iron is about $50/ton. So what is involved in making a dormor?

A mold, a foundry to cast the pyramid shape and casting or forging of the massive eye and placing it into the casting of the pyramid.

The margins seem high to me, but perhaps this is related to the low volume of sales?

I don't understand the pricing of some products, that's for sure.

Do you remember when basic GPS's were more than $5,000?

[idpnd]

The anchor guys have pretty good margins, and there isn't much R&D going into them. Any comparisons are usually performed by sailing magazines etc., the manufacturers don't even provide much in the way of statistical data on performance etc.

You can get good prices on some of the less hyped designs, for instance get a buegel anchor instead of a rocna, the buegel was the first design with a roll bar. You can get that made cheaply somewhere and there are lots of affordable ones floating around.

There's lots of whining about cheap copies etc, but really its just a few metal plates so you can't go wrong.

[SailFastTri]

Originally Posted by craigsmith

Which anchors?

There are expensive anchors (CQR which is drop forged) and cheap anchors (rubbish claw copies which can shatter like so much glass when dropped on a concrete floor). Generally you get what you pay for. The market is very competitive and retail prices do not have much fluff in them.

snip.

Craig,
It was reported in another thread that Rocna has moved production to China and (it appears) changed to a cast one-piece fluke rather than a fabricated fluke. Is that true? If so is it safe to assume that was done to lower manufacturing costs? If what you stated above is true, why haven't your lower costs been reflected in retail prices in places like West Marine?

What is your opinion of the weld on this new Rocna? (Photo snapped recently at West Marine).

[craigsmith]

Originally Posted by idpnd

The anchor guys have pretty good margins, and there isn't much R&D going into them.

How do you know? In both cases I beg to differ.

Originally Posted by idpnd

Any comparisons are usually performed by sailing magazines etc., the manufacturers don't even provide much in the way of statistical data on performance etc.

What would be the point?

Originally Posted by idpnd

You can get good prices on some of the less hyped designs, for instance get a buegel anchor instead of a rocna, the buegel was the first design with a roll bar. You can get that made cheaply somewhere and there are lots of affordable ones floating around.

The Buegel is a flat bar shank, a flat triangular fluke, and a bent tube. Built out of quality high tensile steels with quality-guaranteed welding it would still cost a lot more than the generic "affordable ones" - i.e. amateur junk - you are talking about. In any case it's an extremely primitive design compared to the likes of a Rocna.

Originally Posted by idpnd

There's lots of whining about cheap copies etc, but really its just a few metal plates so you can't go wrong.

On the contrary, it's much more than a few metal plates and a good deal can go wrong.

Originally Posted by SailFastTri

Craig,
It was reported in another thread that Rocna has moved production to China and (it appears) changed to a cast one-piece fluke rather than a fabricated fluke. Is that true? If so is it safe to assume that was done to lower manufacturing costs?

Partly. It's also provided more stable production, more centralized distribution, and the affordable introduction of certification and quality control procedures from independent classification (RINA).

Originally Posted by SailFastTri

If what you stated above is true, why haven't your lower costs been reflected in retail prices in places like West Marine?

It has. Pricing in the 2010 WM catalog (and the US generally) has lowered, along with an increase in the quality of the product.

Originally Posted by SailFastTri

What is your opinion of the weld on this new Rocna? (Photo snapped recently at West Marine).

It's fine. In what sense are you asking? Strength, quality, or looks? It's not the prettiest weld but then it's not a polished stainless anchor. There's good pre-heating with an eye to minimizing HAZ, and there appears to be good penetration. The welders in China are RINA certified and the welds are subject to testing.

[DaveC]

The prices are inflated.

The reason why they cost so much is simple: Enough people are buying them at the current prices.

If people stopped buying them then the price would drop until enough people did start buying them. But there are alot of people with expensive yachts who don't think twice of spending $whatever to have the name brand thing, so the rest of us are doomed.

Here's a beer for ya...