My e-mail inbox became pretty flooded after the AeroStar Sportkites business closure was announced.  Received many nice phone calls as well.  Some pleaded with me to change my mind while others speculated that I was burned out (not true – I still have a passion for kites!).  A few kind souls were concerned that I was having health issues.  Thankfully, pleased to report that I’m fine! 

Mostly, people just wanted to know the reasons behind my decision.  For sure, I feel that much is owed to my loyal customers and the kiting community in general.  Furthermore, just writing down my thoughts will be good therapy and help clear my mind a bit.  So, in no particular order, here are the circumstances that lead to my decision:

Market Saturation – The market for high-end ($200+) sport kites is extremely small.  Despite this fact, there are currently an incredible array of models available (and several more in the works).  With so much competition for so few sales, the slice of the pie for most builders/manufacturers has become a mere sliver.  I realize diversity is great for the customer and competition drives the sport forward.  However, where are all the enthusiasts to buy these kites?  

Paltry Labor Rate - I’ve heard people say “Geez, a high-end kite only cost about $50 to $100 in materials to make.  How can those builders have the nerve to sell their stuff for $250+?  Talk about a profit!”  I really get a chuckle out of comments like this.  Of course, the flip side is those folks who have built their own kites in the past.  The typical response from them is, “I don’t know how you can sell a product of this quality for so little money!”  Past experience and perspective is everything. 

Really, for a low volume hand-crafted sport kite, the materials costs are secondary.  Most critical is the incredible amount of labor and the skill involved to make these flying works of art.  Along with over a decade of experience, I have all the fancy templates and fixtures.  Despite this, I still can not make an AeroStar dual-liner in under 10 hours.  Well, I could, but I would be ashamed to sell it!

Then there are the numerous overhead charges and time expenditures that come with running a business.  (Sole proprietors in particular can relate to this!)  Time to address the accounting/tax requirements, website updates, customer inquires, purchase orders plus maintenance & repairs on equipment all must be absorbed into your profit margin.  For every kite built, I probably spent a few hours handling the numerous administrative tasks. 

Any craftsmen will tell you that not getting paid an acceptable amount grates on you.  And for sure, I didn’t get into kiting for the money. But eventually, it becomes downright demoralizing.  

Material Costs - As stated above, material costs are secondary when compared to the labor.  But certainly, they are important.  A low volume producer will naturally purchase supplies in smaller quantities too.  This often results in having to pay the highest tier class on the wholesale pricing structure.  In addition, the cost of every component rose for 2005.  In particular, the price for carbon and frame fittings increased quite substantially. 

Time Constraints - In some ways, I’ve also become a victim of my own success.  Having sold quite a few kites over the years, hardly a day goes by that someone doesn’t contact me in need of spare parts, repairs or with tuning questions.  I’m more than happy to assist everyone, but I’m now also spread very thin trying to wear all the hats mentioned above.  To keep my head above water, I often work long hours each weekend.  Believe me, this takes its toll on personal relationships and wears down your batteries!  Hiring employees simply wasn’t feasible either.

Imported Kites – Almost every kite produced in mass quantities is now made in countries with cheap labor (typically China).  Years ago, these kites flew poorly, had atrocious workmanship and used sub-par materials.  This is now changing as the performance and quality has improved for most models.  

Granted, a mass-produced model will never have the attention to detail and perfection of a kite individually hand-crafted by a master builder.  But, the overall effect of these imported kites has been a drastic cost reduction for the average stunt kite over the last decade.  Therefore, what people are willing to shell out for a custom kite has also been reduced since price comparisons are inevitably made. 

In response, I’ve been forced to hold my prices fairly steady over the years.  This has resulted in my labor rate actually decreasing when you factor in inflation and how complex sport kites have become.  For example, modern features on the Sano SS/SSL like the ShapeShifter™, tail ballast, adjustable leech lines and leading edge stoppers didn’t exist until recently.  Cumulatively, these details end up adding a good chunk of time to each kite.

Kite Promotion – No matter how great a design is, two key things are required to gain wide acceptance and popularity:  A strong network of retail sellers and heavily promoting your wares at the major kite festivals.  With AeroStar kites, there was no way I could drop the prices down to the wholesale level.  In addition, you can’t travel much when you need to be at the shop completing the paid orders!

Challenge is Gone – During the first few years of building, I was obsessed with the whole fabrication process.  It wouldn’t be unusual to wake in the middle of the night with fresh ideas!  It was exciting to develop new methods of sewing or techniques to precisely piece together the sail panels.  So while each new design has updated features, the actual mechanics of constructing my kites hasn’t changed much over the last 5 years.  AeroStars are about as perfect as any handmade item can get!  While I’m proud that I attained this level, sitting down to make a batch of kites can now be quite tedious and mundane.

Limited Production Capacity – This is probably my main reason for throwing in the towel.  I’ll typically spend a good 6 months testing and refining a new design.  Once optimized, I will then invest in the tooling and unique parts to make the production models.  Pretty easy to understand that quite a few kites have to be sold before you can even recoup the R & D expenses.

In addition, the saturated market and rapid advancement of the sport means a cutting edge design will only be in strong demand for a short time frame.  For me, that means I will typically only make about 100 units of a given design. Hardly worth it, wouldn’t you agree?

Right now, I have two new projects designed in CAD software.  One is for a vented Sano (SSV).  The other is for a full size Sano (named the Axiom SS).  This 8 footer would share a lot of the DNA from the Sano and incorporate many of the same design features. 

However, before proceeding past this 'virtual' design phase, I kept asking myself, “Is it worth going through this process once again?  Would it pay off in the end?”  I had to be honest and conclude that it simply wasn’t for either project.  

Obviously, if these designs would be mass-produced, the development costs would be spread over many more kites.  Given the fact that both designs would have to sell for a minimum of $300 if I hand-crafted them, the potential sales would be very limited indeed.

Summary – In my opinion, the days of the custom designer/builder are over.   Actually, they have been for years.  But like a salmon swimming upstream, I still tried to forge ahead.  And while open to debate, I feel losing this small core of builders is a bad thing.  It’s the passionate people who fuel the sport’s advancement and ensure its continued growth.

As for my future in kiting, I’m not really sure.  It’s really in my blood and what’s kept me going this long.  I am an engineer, so it would be nice to focus more on the design aspect and get away from the actual building.  So if AeroStar ever returns as a full-fledged business, it would be structured totally different.

In addition, I hope my comments didn’t come across as too negative or bitter.  In reality, if I were to list all the positives about my kiting experience, it would be ten times as long!  First and foremost would be all the fantastic people I’ve met and did business with – thanks again to all of you!  

Many customers (particularly from foreign countries) would buy an AeroStar without ever seeing one in person.  Your faith in my product was very much appreciated!  I am also very proud that I’ve had about 90% repeat business with many of you owing the entire line of kites.  THANK YOU!!!

In closing, I apologize this was so verbose.  But, I’ve spent a lot of years doing this and wanted to be thorough and honest.  Since announcing the closure, I’ve been vacillating if I did the right thing.  In the end, I don’t think I’ve really had a choice!  I’ve probably been one of the most successful builders of high-end kites.  Despite this, AeroStar Sportkites in its present form is simply no longer a viable business. 

Smooth breezes,