On a related thread, I noticed the old pro-Phantom/anti-Phantom argument has continued this year as in 2004 and 2005, with a new cast of characters. This gets tedious and is pointless, and I hope Colin will consider making this a stickie post at the top of this forum, so we don't have to go through the same nonsense in 2007.
The Argument
The argument usually starts with a newbie posting something like this:
"Wow, I just got back from Phantom and wow! What bargains! I got BOGO and a bunch of freebies and let me tell you all the great stuff I got for just $650."
And somebody else then replies along these lines:
"You stupid moron. Phantom sucks!"
Seventeen replies later, the battle lines are clearly drawn, feelings are hurt, names are called, etc. And this has been going on ever since I joined PyroU Forum. The arguments and name-calling are unnecessary and unhelpful, and I would like to try to clear things up. Let me start by making a few basic points:
1. Phantom has quality merchandise. Especially in terms of their 200-gram cakes like Emerald City, Rain of Fire, Blue-Ringed Willows and Silver Sonic Warhead, Phantom's merchandise has a good reputation, quality-wise. Their #500 Round Red Dahlia and the #500 "fluorescent" tube series are also highly praised, and my experience with Phantom shell kits has also been very good. So, if you're a pro-Phantom guy, nobody here is really arguing about the overall quality of their products -- it's good stuff.
2. Phantom prices are not bad ... for retail. When you figure in the BOGO and the freebies, Phantom's prices are roughly comparable to any other major fireworks retailer. So, again, pro-Phantom guys, nobody's criticizing Phantom for their overall pricing structure, as long as you're talking retail.
3. Phantom's color catalog is da bomb. Let's face it, the first time you saw that beautiful catalog, it was like the first time you saw Penthouse -- it's pyro-porn. So even if you're anti-Phantom, you've got to give them credit for the catalog.
4. The BOGO/freebie pitch is misleading. This, dear Phantom-lovers, is why some guys really hate Phantom. Today's Phantom-hater is probably a guy who, once upon a time, spent waaaayy too much money at Phantom, thinking to himself, "Wow! What great bargains! Buy One Get One Free!" Then, after they discover wholesale buying, they look back at their Phantom-buying days and feel like they got hustled and ripped off.
Calculating costs
Having once been a Phantom-lover -- who in July '04 needed some persuading to try wholesale buying for the first time -- I try not be harsh with Phantom-crazed newbies. I still occasionally buy Phantom stuff, and it's good stuff, and if money were no object, I might buy more of it. But assuming that you're not Bill Gates or Paris Hilton, you've got to learn to calculate the costs behind the BOGO/freebie regime aat Phantom.
To start with, there is no such thing as "free." The "Buy One Get One Free" slogan is just a psychologically appealing way of saying: "The price-per-item in the catalog is actually twice what we sell it for." As a sales gimmick, the BOGO encourages you to BUY MORE FIREWORKS, see? Because you can rationalize it to yourself by telling yourself you're getting a great bargain.
And the same is true of the "freebies." If you buy $650, you get a "free" $99.99 assortment (which, you are told, has an actual value of $161). So, suppose you had gone through the catalog and picked out $500 worth of stuff. You look at that next freebie and say to yourself, "Aw, why not? Spend another $150 and I'll get $100 more free!"
Why would Phantom give away "free" fireworks? Two words: Market share. If they can entice you into spending the maximum possible amount with them -- and then some -- Phantom can monopolize 100% of your fireworks budget. That means they can gain a competitive edge over rivals. It's the same reason Wal-Mart sells so cheap. It's Business 101: The bigger the business, the greater the efficiencies of scale. So you cut costs to the bone, sell cheap to grow the business, take a smaller margin of profit on a larger sales volume, enhancing the capital value of your business by increasing its market share.
But what does this mean to you, the fireworks consumer? It means that Phantom's pricing scheme (w/BOGO + freebies) makes it difficult for you to calculate your actual cost for any given item. Yeah, that cake is priced at $24.99, but you got BOGO, and then, because you spent over $250, they gave you a "free" 19-shot repeater ... and you got a cool T-shirt. So what did that $24.99 cake actually cost?
You don't know ... and that should bother you. Because all that really matters in the long run is: What did you pay, and what did you get?
Phantom vs. Wholesale: Direct comparisons
When you buy wholesale, you get more for your money -- period. Even with the BOGO and freebies, Phantom prices are at least twice as high (on a per-item basis) as wholesale. So if you're going to buy a lot of fireworks (e.g., over $500 a year), buying wholesale is definitely the way to go.
I'll make these comparisons using prices from Patriotic (in Maryland), but you can consult the Dealer Directory or ask around about the wholesale distributor nearest you.
For comparison's sake, we will use items from the Phantom catalog that we can match almost directly with items from Patriotic:
Whistling Buster (#G-239A, pg. 27 in 2006 catalog)
6-shell artillery kit, $19.99
w/BOGO = 12 shells / $19.99
= $1.67 per shell
Whistling Blaster (#23007)
6-shell artillery kit, case of 12 kits, $39.19
72 shells / $39.19
= $0.54 per shell
So, even with BOGO, you see, the Phantom whistling shells cost more than 3 times what you would pay wholesale.
- - - --
Large Happy Planets (#G-013A, pg. 14 in 2006 catalog)
36-shot cake, $6.99
w/BOGO = 2 cakes / $6.99
= $3.50 per cake
Happy Fireworks, Large (#19072)
36-shot cake, case of 24, $36.05
24 cakes / $36.05
= $1.50 per cake
So, even with BOGO, you're paying more than twice as much for the same 36-shot "Happy" cake at Phantom.
- - - - -
Wild West (Brothers Brand) (#G-101, p. 14 in 2006 catalog)
25-shot cake, $24.99
w/BOGO = 2 cakes / $24.99
= $12.50 per cake
Rodeo West (Glorious Brand) (#19018)
25-shot cake, case of 12, $73.64
12 cakes / $73.64
= $6.14 per cake
Again, even with BOGO, you're paying more than twice as much for the same cake at Phantom, compared to wholesale pricing. The price advantages for wholesale are so large, no $99 "freebie" can make up for it.
Common objections
At this point in the argument, the Phantom buyer will typically raise these objections:
1. Don't I need a license or something to buy wholesale?
Generally, no. Policies vary from dealer to dealer, but nearly every wholesale dealer will sell to the ordinary pyro, provided you meet their general requirements, such as minimum purchases, advance orders, etc.
2. What about minimum purchase requirements?
This varies greatly. Patriotic's minimum is $200, which isn't a lot for a serious pyro. Other dealers have minimums of $1,000 or more.
3. But I don't want 12 of this and 24 of that!
Fine. Go in with two or three buddies and split cases. Use the PyroU forum to get in touch with other pyros in your area and form a buying group. The more the merrier (as long as you know you're dealing with guys you can trust). If you've got a lot of guys in your buying group, you can get almost the exact number of every item you want, just as if you were shopping at a retail store. Oh, and wholesalers sometimes have assorted cases, and they sell assortments, too.
4. Yeah, but Phantom has freebies!
And retailers have volume discounts. For instance, at Patriotic, everything over $500 is 10% off regular wholesale, and everything over $1,000 is 15% off. If you pitch in with five or six other serious pyros to make a buy of $2,500 worth, your next purchase after that is 20% off.
5. Yeah, but Phantom's just 20 minutes from my house, what about the cost of traveling all the way to a wholesaler?
Good point. If you've got a retailer close by, the convenience factor is definitely there. And if it's a long drive to the nearest wholesale dealer, you've got to add the gas money to the total cost. That's another argument for joining up with a buying group. If you've got 6 guys going in together, and one of you has a truck with a camper top, or maybe a trailer, everybody can chip in together on the gas on a big order, and that will minimize your overall transportation costs.
Go wholesale for 2007
All these objections fade into significance, however, when you figure that you're buying at less than half of Phantom prices. Or, to put it another way, for the same amount of money, you'll get twice as much fireworks.
You're a newbie, and you spent way to much at Phantom this year and ... well, it's too late now, right? Don't sweat it. Enjoy your 2006 show, but just make up your mind to go wholesale for 2007 ... and start thinking about the possibilities.
Hmmm, if I get two cases of Excals and a full case of Critical Acclaim, and order 300 HDPE tubes from PyroGear .... then two cases of Amazing Ballet ....


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), but this year it is very true.

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