AUGUST 2013
DIGITAL
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AUGUST 2013 I DIGITAL
Senior Business Editor Thomas J. Ryan tryan@sportsonesource.com Contributing Editors Aaron H. Bible, Fernando J. Delgado, Charlie Lunan, Matt Powell Editorial & Creative Director Teresa Hartford teresa@sportsonesource.com Senior Graphic Designer Camila Amortegui camila@sportsonesource.com Advertising Sales Account Managers Buz Keenan buz@sportsonesource.com 201.887.5112 Katie O'Donohue katieo@sportsonesource.com 828.244.3043 Circulation & Subscriptions subs@sportsonesource.com
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MAKING NEWS
4 Cramer Products Acquired by Performance Health Shock doctor Hockey Unveils All New Protective Ice Hockey Line 5 Schutt Sports Introduces New Interactive Warning Label on Football Helmets 6 Smack Sportswear Partners with Phiten Cutters Gloves to Launch New Baseball Batting Gloves Featuring Proprietary Performance Material Ace Brand Launches New Sports Medicine Product Line 14 Industry Calendar
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PRODUCT FOCUS
8 Spring 2014 Team Socks
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FEATURE
11 Adapting to Change - TEAM examines the current team dealer landscape with a roundtable discussion
Copyright 2013 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to TEAM BUSINESS DIGITAL are not necessarily those of the editors or publishers. TEAM BUSINESS DIGITAL is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in TEAM BUSINESS DIGITAL may not be reproduced in whole or in part without the express permission of the publisher. TEAM BUSINESS DIGITAL is published monthly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to TEAM BUSINESS DIGITAL , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
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NEWS
CRAMER PRODUCTS ACQUIRED BY PERFORMANCE HEALTH Performance Health, manufacturer and marketer of Thera-Band, Biofreeze, Perform and Hygenic branded products, announced a merger with Cramer Products, Inc. Marshall Dahneke, the president and CEO of Performance Health, will be leading the new combined entity. Tom Rogge, president and CEO of Cramer Products, Inc., will be reporting to Dahneke. Cramer Products portfolio includes all branded products from Cramer, Active Ankle, Stromgren and Cosom, and is a leading company supporting the athletic training (AT), sports medicine (SM) and team markets. Cramer Products also reaches into retail, primarily through chain sporting goods stores, as well as into certain international markets. “Near-term plans are to continue operating Cramer as we’ve been operating as a separate company,” said Cramer’s Rogge. “We operate in different markets. They’re [Performance Health] very strong in physical therapy, occupational therapy, chiropractic, dental markets and massage. We’re [Cramer] primarily in the sports medicine and athletic training markets. Early on, the focus will be on sales’ synergies and how we sell more of each other’s Tom Rogge, president products in each other’s channels. But there are no significant and CEO Cramer Products, Inc. organizational changes planned.” Performance Health acquired Cramer Products. Performance Health is owned by Gridiron Capital, LLC, a private equity firm based in New Canaan, CT. “Combining Cramer Products with Performance Health provides benefit to both organizations, leveraging our complementary sales channels and go-to-market strategies,” stated Performance Health’s Dahneke. “Each company will cross-promote and cross-sell the other’s product lines through their respective sales channels, taking advantage of each other’s market leadership and strong legacy brands.” Cramer’s Rogge credited Joseph Pellegrini, managing director at Robert W. Baird, with setting the wheels in motion for the merger. “I’ve been acquainted with Joe [Pellegrini] through some industry functions over a number of years. He is the person who actually put us together,” explained Rogge. “He had played football at Harvard and played for the New York Jets, and he’s always known Cramer and used our products. He thought that our two companies would be a good fit. He had some familiarity with Performance Health, and he had some familiarity with me personally, and he’s the one who got us talking. The timing was good for our company, and we are very impressed with the Performance Health product line and staff, and their resources. So we think it’s a good fit strategically.” Joseph The partnership will result in little initial change in how each Pellegrini, managing company conducts business with their primary stakeholders. The director at products historically purchased from Cramer will continue to be Robert W. Baird purchased from Cramer, and vice versa. “We’re strong in markets where they have not been strong, and vice versa,” said Rogge, who will maintain his position as president and CEO of Cramer following the merger. “We’re both excited about the opportunities for distributing and getting more penetration with each other’s products in our respective markets. They [Performance Health] are particularly strong internationally, and for our company [Cramer], we think that’s going to be a good opportunity as well.” Rogge added that Cramer has recently starting the process of training and cross-training its staff in products and other logistics. “Our senior management has been very impressed with their senior management team, and we’re looking forward to working together with them,” he continued. “They’re [Performance Health] a larger company than we are, so they have more resources available, and we think that’s an opportunity as well. With regards to the significance of this to the marketplace, for the foreseeable future, it will be business usual.” 4
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SHOCK DOCTOR HOCKEY UNVEILS ALL NEW PROTECTIVE ICE HOCKEY LINE Shock Doctor is introducing a newly expanded line of hockey protective apparel and accessories for athletes ages 6 and up. The line will feature the ShockSkin Hockey Impact Goalie Shirt, which integrates with standard goalie padding providing coverage in the gaps; the ShockSkin Hockey Impact Shirt, a light, breathable protective shirt; the Ultra Hybrid Hockey Short, which offers the comfort of a loose-fitting short with the benefits of a compression short; the Ultra Compression Hockey Short, and new mouthguards, including Ultra Braces and Ultra Double Braces; and a new Skate Insole. The Hockey line and mouthguards, will be worn on the ice this season by Shock Doctor brand ambassadors Nick Leddy (Chicago Blackhawks), Jack Johnson (Columbus Blue Jackets) and Jake Gardiner (Toronto Maple Leafs), as well as other hockey players from the NHL to the minor league circuit and NCAA.
Shock Doctor 572 Ultra ShockSkin Hockey Shirt
Shock Doctor 4803 Ultra Double Braces
Shock Doctor 372 Ultra Hybrid Hockey Short
SCHUTT SPORTS INTRODUCES NEW INTERACTIVE WARNING LABEL ON FOOTBALL HELMETS The new Schutt warning label will feature a QR Code, which is a permanent, interactive graphic that can be scanned by any mobile device. Scanning the QR Code will launch CDC’s new “Heads Up” concussion app.
Schutt Sports, one of the world’s leading manufacturers of football helmets, will replace the current warning label it places on every helmet with an interactive label starting immediately. It will link link the new “Heads Up” mobile concussion app developed by the Centers for Disease Control and Prevention (CDC) and announced earlier this month. The concussion app will give players, coaches and parents immediate access to the most up-to-date concussion information and knowledge, including appropriate equipment to use for certain sports activities. The warning label offers much-needed education for consumers regarding concussions and other head injuries. “It’s a nice step forward,” said Glenn Beckman, director of marketing communications at Schutt Sports, in a conversation with Team Business. “We were trying to find a way to make a permanent, positive contribution.
We’ve previously put information on hangtags, and other manufacturers have put information on hangtags, but the inside story is that 95 to 98 percent of those hangtags get thrown away without even being looked at. We wanted to do something that would have more of an impact.” The new Schutt warning label will feature a QR Code, which is a permanent, interactive graphic that can be scanned by any mobile device. Scanning the QR Code will launch CDC’s new “Heads Up” concussion app, making it convenient for millions of football players, fans, coaches and parents to access important information. “We rely on innovative partnerships to extend the work of CDC,” said Charles Stokes, president and CEO of the CDC Foundation. “The decal on every football helmet is a creative solution that will extend the Heads Up Campaign message, developed to help keep children and teens as safe as possible from concussion and other serious brain injuries.” The “Heads Up” app features a menu of options, including:
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Concussion information (how to recognize one, what to do if you suspect someone might have a concussion, return to play protocols, and more); Proper helmet fitting instructions for many sports (football, baseball, softball, hockey, lacrosse, action sports, and more); Safety tips for many different situations (biking, playgrounds, homes, cars and more).
“This was a great situation for us because the key with anything like this is always the content, and the CDC is the most unbiased source of medical and scientific information in terms of concussions that’s available,” explained Schutt’s Beckmann. “It’s the latest, most objective information on concussions. The app they developed is really outstanding.” Beckmann also said that Schutt has had a few teams call the company and ask if they could buy the labels and put them on the helmets themselves instead of after this coming season. Feedback overall from teams and football players has also been favorable. “Everything has been incredibly positive,” shared Beckmann. “I’ve had some questions posed to me about whether the CDC is the best source. In my mind, they’re the perfect source for this information, because there’s no bias. If we were trying to create this app and do all this work ourselves, inevitably there would be a perceived conflict of interest between our desire to sell more helmets, and the information being provided. The CDC is completely objective, and they have the reputation of providing completely unbiased information and data. Ultimately, the goal is to make this information available to as many people as we can, as quickly as we can, so that they always have something available to look at and learn the latest about concussions and safety.” All new helmets produced by Schutt, along with all Schutt helmets reconditioned by the company, will immediately begin receiving the new warning label. Hundreds of thousands of new and reconditioned helmets will be hitting the shelves and the fields over the next few months in time for the 2013 football season.
CDC "Heads Up" mobile concussion app
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SMACK SPORTSWEAR PARTNERS WITH PHITEN Smack Sportswear, the maker of custom designed athletic apparel primarily focused on volleyball, has signed a partnership agreement with Phiten, the manufacturer of the titanium necklace and precious metal-infused sports accessories. The agreement between the two companies is the first to allow a U.S.-based apparel company (Smack) to acquire an exclusive license to infuse clothing with Phiten's AquaMetal technology. Smack is promoting a Kickstarter campaign late this month with the purpose of expanding production, promotions, and distribution of the new line. The "Phitenized" garments will feature Phiten's Aqua-Metal technology - metals broken down into microscopic particles - as well as moisture wicking and other high-tech properties. Phiten technology is designed to help athletes excel during activity and to support a healthy and active lifestyle. Made with high-end fabrics, the new "Phitenized"
line will retail from $40 to $90 and will be available in three categories: Beach, Team, and Core Performance apparel. "Phiten's accessories are worn by thousands of professional athletes worldwide to help them perform at a higher level," said Bill Sigler, CEO of Smack Sportswear. "With Phiten as our partner, we have a chance to introduce the most innovative technology into fabric since moisture wicking was introduced in the 90's. It could revolutionize the industry." After initially making the line available in the volleyball market, Smack plans to expand the new apparel offerings to other sports such as baseball, softball, and soccer. Distribution in the U.S. will primarily be available through team dealers and retail chains, with international distribution to follow. "We are excited to partner with Smack," said Joe Furuhata, vice president of Phiten USA. "Smack is an accomplished brand and we have great trust in their ability to create quality products with our technology."
CUTTERS GLOVES TO LAUNCH NEW BASEBALL BATTING GLOVES FEATURING PROPRIETARY PERFORMANCE MATERIAL
ACE BRAND LAUNCHES NEW SPORTS MEDICINE PRODUCT LINE
Cutters Gloves recently announced the launch of four new machine washable, synthetic baseball batting gloves made with the company's exclusive C-Tack Performance Grip Material – The Lead-Off, Power Control, Prime Command and Prime Hero.The launch marks the first new product line since Shock Doctor Sports bought Cutters Gloves in 2012. Shock Doctor has applied its signature technical innovation to the baseball category with the addition of the new level of C-Tack technology grip usage - successfully utilized in football - to the baseball gloves. According to Jay Turkbas, VP product development at Shock Doctor and Cutters Gloves, input from more than 75 baseball pros and hundreds of elite athletes helped the company create the new line. “Every time a baseball player gets up to bat, it is important that they can trust their batting gloves,” he said. “With Cutters Gloves exclusive, self-restoring C-Tack Performance Grip Material, batters of all ages and skill levels know they have the strongest and most durable grip possible.” The proprietary C-Tack grip material offers several performance capabilities. By providing a strong, consistent, and a durable grip, it relaxes the batter’s muscles to generate quicker bat speeds. It works in all weather conditions, while the C-Tack is also part of the material creating a strong grip that is self-restoring and permanent. The gloves also feature reinforced palm patches in common wear spots, and a pre-curved finger design for a more natural grip on the bat. The batting gloves will be available in November and are offered in a wide range of colors. The Lead-Off and Power Control will be available in adult and youth sizes, while the Prime Command and Prime Hero will be offered in adult sizing.
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Ace Brand has launched Ace Brand Sports Medicine Products, a new product line that provides young athletes with support and protection and marks the brand’s expansion into the sporting goods category featuring Ace Brand’s technology within a variety of sports medicine products. As part of the launch, Ace Brand has partnered with Little League Baseball and Softball, the world’s largest youth sports organization. “We are excited to launch Ace Brand Sports Medicine Products this summer in conjunction with the Little League Baseball World Series, as the official sports medicine products sponsor,” said Taylor Harper, marketing manager, Ace Brand Sports Medicine Products, Consumer Health Care Division. “With this product line, we continue to deliver on Ace Brand’s commitment to help athletes stay off the sidelines and in the action.” The line features the Custom Dial Ankle Brace, Elbow Strap and Knee Strap, along with additional braces and supports. It also ACE Brand Adjustable Knee Support includes elastic bandages, protective gear, tapes/underwraps, hot/cold therapy, and other sports accessories. It has three levels of support for sports such as baseball, basketball, football, golf, hockey, soccer, tennis and volleyball and can be found in the sporting goods section of major retailers, including Walmart, and at the U.S. Armed Forces exchanges at MCX, Exchange, and NEX Navy Exchange around the country. The Ace Brand Sports Medicine partnership with Little League Baseball and Softball will strengthen the brand’s visibility with young athletes. It will be used at the 2013 Little League Baseball World Series in Williamsport, PA from August 15-25. In addition, Ace Brand Sports Medicine Products is offering an All-Stars Sweepstakes, giving young athletes a chance to win a $5,000 grand prize plus a $5,000 donation to a local organization.
PULSE OF THE OUTDOOR CONSUMER STUDY 2013
A Market Insight Study from The SportsOneSource Group For more information, or to reserve your copy of the Pulse Of The Outdoor Consumer study, contact Neil Schwartz 561.692.3722 or email SOSResearch@SportsOneSource.com
PRODUCT FOCUS
BEST FOOT FORWARD: SPRING 2014 TEAM SOCKS Bold colors, high performing materials, and customization define leading Team Socks for Spring 2014
Team socks have become more of a sought-after uniform piece over the past several years, with athletes valuing performance and appearance (see previous coverage of team socks – “Team Socks No Longer An Afterthought” - in TEAM Business April 2013 issue) in their preferred sock styles. As teams now consider socks to be an integral part of their uniforms, and as individual players seek to express their unique personalities through their eye-catching footwear, team dealers and retailers now have more opportunities for high-volume sales – and solid margins - in socks than ever before. Several leading manufacturers are bringing a vibrant, comfortable and high-performing selection of socks in time for next spring across all major team sports. TEAM Business has taken a good look at the styles athletes will be wearing in 2014, and the view is more colorful than ever before. Team dealers in all parts of the country have seen a steady increase in demand for bright socks with designs that are meant to give athletes a personalized look. “It used to be that we’d sell a lot of white socks. We don’t do that anymore. White socks are minimal,” said Steven Hauff, owner of Hauff Mid-America Sports, a team dealer based in Sioux Falls, SD. “Today it’s about color. You’re matching a multipurpose sock with basketball, football, soccer, volleyball – all those. In the last three years, we’ve seen a trend towards more identification - putting your school name on it, or your team logo, or introducing more stripes.” “The profit margin in socks is good,” explained Hauff, who noted that his business sells through a good deal of Under Armour, Adidas, Nike, and Twin City Knitting socks. “You might not have a lot of dollars tied up in them, but you never want to run short on inventory. The multipurpose sock from Twin City, for example, is something we don’t want to ever be out of. If you’re out of stock, you’re missing sales. So at our three locations, we look and say, ‘Ok, what do we need for inventory?’ We want it such so that we might have a year supply, and so that we’re never out.” 8
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Nike’s Elite Crew Basketball Sock, which took the youth market by storm last year, is expected to regNike’s ister big sales once again next year. But demand has Elite Crew been so high that Nike has run into a supply shortBasketball age. “If we could get Nike Elite socks, being that Sock they’re out of stock, that would be a very strong seller,” shared Kim Karsh, owner of California Pro Sports in Harbor City, CA. “We also have a ProFeet Shooter Sock that’s very strong.” Karsh believes that the trend towards more color in socks is rooted in the influence professional athletes have on youth players. “I think athletes right now are looking at some of the pro athletes, whether it’d be football players or even soccer players, and I think that it has become an added accessory that most coaches will group together in a spirit pack or uniform. Many will move towards a custom sock and say, ‘Yeah, I want to be different.’ Before it was an option, now it’s a package with the uniform.” ProFeet ProFeet will have plenty of team socks availShooter able for spring 2014, including several multiSock sport styles and team-specific styles. ProFeet’s 230 Performance Shooter Sock has been extremely popular during 2013, and is expected to once again sell at a brisk pace at team dealers next year. Ideal for basketball and football, as well as everyday use, it is available in several bold custom colors and is made of polypropylene, endurall and Sta Cool material for moisture wicking and comfort. Sof Sole is charging into 2014 with their All Sport Select Socks. A multi-purpose style with technical features not found in other team socks, the All Sport Select can be used for soccer, baseball, basketball, football, and Sof Sole All Sport Select Sock
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ACHIEVE YOUR GOALS
volleyball, among other team sports. Made with nylon mesh for moisture management, it features compression bands at the ankle and an arch provides a secure fit. It also boasts a graduated comfort top that secures to the ankle and shins to prevent slippage. The half-cushioned foot targets additional comfort at the toe and heel. Available at an MSRP of $11 per 2-pack, the All Sport Select provides value while also offering the eye-catching colors athletes seek. Under Armour emphasizes technology to make athletes better in their team socks, reflecting their philosophy and approach to all of their products. One of the brand’s signature styles is the UA Ignite. Available in adult and youth sizes, the Ignite line is an all-sport style featuring a soccer-specific model, U412 UA Ignite Soccer OTC. The style is also ideal for baseball and football, but can be used by any team sport athlete that uses crew socks with their game uniforms or for practices. Available in 30 color schemes for adults, the Ignite is made of a 83 percent polyester/11 percent cotton/4 percent nylon/2 percent spandex fabric mix and emphasizes comfort with moisture wicking capabilities, and an embedded arch support to reduce fatigue and odor control.
Under Armour U404 Soccer Solid Over The Calf
Under Armour U412 UA Ignite Soccer OTC
Other notable team sport styles include the U403 Football Over The Calf, U401 Baseball Over The Calf, and U404 Soccer Solid Over The Calf. The U415 UA Ignite Bolt Sublimated Crew is another key style expected to be very popular at retail. Team sport athletes like wearing the sublimated designs during practices and training.
BREADTH OF DATA. DEPTH OF DATA. TIMELINESS OF DATA As the broadest, deepest and most timely data available for the U.S. Sports and Outdoor Active Lifestyle Market, SportScanInfo is the weekly retail point-of-sale data reporting solution. To learn more about how we can help your business, call 704.987.3450 or email sportscan@sportsonesource.com.
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AUGUST 2013 I TEAM BUSINESS DIGITAL
CUSTOM CONVENIENCE As socks have become an important uniform piece, teams now prioritize them when putting together their orders each season. Under Armour offers a solution for teams looking for specific color designs when placing orders with team dealers. “To help teams take advantage of socks becoming more important, we’ve launched the customization site to allow teams to customize their socks,” said Michael Schroeder, director of marketing at Gildan, which manufactures and distributes Under Armour socks. “It allows a school, team or club to go online and pick the body color of their sock, the colors of the logo, and secondary colors or any other designs on it – for example, the colors of the Ignite dagger-type design and look.” Under Armour’s custom sock site, which is a great tool for team dealers to work with their customers after picking out uniforms, can be found at uacustomsocks.com. Schroeder went on to say that custom socks are a great way for teams to accentuate their uniforms and allow both the team and individual athletes to stand out. “It really lets athletes hook 100 percent in with their uniforms,” he shared. “So if a team’s uniform is purple and gold, the custom site allows them to create a purple and gold sock. In the past, that team would have gone with a white sock or a black sock, or an all-purple sock. Now, they can go with the exact story they’re telling with their uniform.”
ADAPTING TO CHANGE TEAM Business examines the current team dealer landscape with a roundtable discussion featuring executives from The Athletic Dealers of America (ADA), including President Peter Schneider and members of the association’s Board of Directors. By Fernando J. Delgado
The Athletic Dealers of America (ADA) is an association of independent, non-competing athletic team equipment dealers. As part of one of the strongest team dealer buying groups in the country, ADA’s 91 member dealers have grossed total sales of over $215 million and include over 1,340 employees. In order to take the pulse of team dealers that face increasingly difficult economic pressures and the ever-evolving e-commerce channel, SGB spoke with Peter Schneider, ADA’s president, Steve Hauff, vice chairman of ADA’s Board of Directors, and Kim Karsh, western states, ADA Board of Directors. Hauff owns Hauff Mid-America Sports in Souix Falls, SD, and Karsh owns California Pro Sports in Harbor City, CA.
our vendor partners with a reduction in their billing and collection costs. There is no doubt it’s a volatile market right now for the team industry. The team athletic market has attracted some new players and some older ones that have become very aggressive in recent years.
CAN YOU UPDATE US ON THE STATE OF ADA?
Peter Schneider: “The ADA is doing very well. As you know the ADA, changed on January 5th of 2007, when the membership bought the company. We became a member-owned LLC (Limited Liability Company). Each member now owns an equal share of the company. Only ADA dealers can own a share in the LLC. No outside body or person may own a share. The buying group exists solely for the purpose of supporting our dealer network. In October 2008 the ADA implemented an EDI (Electronic Data Interchange) Centralized Billing Program. In almost 5 years the program has grown to approximately $50 million annually. This program helps our members by supplying them with additional rebates and discounts while providing
All four of the major buying groups run very professional organizations. Each has their own philosophy and style of operation. Our dealers are very pleased with the changes we have made, and we will continue to evolve to compete against the changing marketplace. I’m sure NBS, Sports Inc., and TAG are attempting to do the same.”
WHAT ARE SOME OF THE BENEFITS OF BEING AN ADA MEMBER?
Steven Hauff: “The camaraderie that you have in an organization like ADA, and the fact that you can trade merchandise between common dealers, is very important. When you go to a trade show, you have a sense of belonging to something, other than being just a registered number when you go to a super show. A buying organization provides you with that camaraderie and unity in the business. It gives you advantages today on trends in the industry. What I see is the ability to purchase products at a better price than if you were an independent dealer.” Kim Karsh: “The main benefit is the family atmosphere that ADA offers. We’re all in the same business, and we don’t mind sharing trade secrets between our dealers. When dealing with a particular school, we’re not in direct competition when we sit around and talk shop. It’s an air of freedom in particular situations, knowing that fellow member dealers aren’t your competitors – they’re your friends, they’re your family. Each of us is a part owner. It’s 100 percent member-owned. Other buying groups are not. There’s a lot more input, and there’s quicker reaction time to situations that arise. The open forum of talking to a Board member is a benefit – the door’s always open to talk to any of us.” TEAMBUSINESSDIGITAL.COM
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HOW ARE ADA MEMBERS DEALING WITH THE CHALLENGE OF THE CURRENT ECONOMIC CLIMATE? HOW ARE TEAM DEALERS ADAPTING TO SHRINKING SCHOOL ATHLETIC BUDGETS AND INCREASED COMPETITION IN THE E-COMMERCE CHANNEL?
Schneider: “With tax revenues down and school budgets being cut, the ADA continues to look for ways to assist our membership. One of the things we did about two years ago was to build and implement what we call a Spirit Pack or School Team website. The website allows an ADA dealer to custom build stores for high schools, booster clubs, travel teams, etcetera. What our dealers can do is go to a school or organization and work closely with the coach or administrator to build a custom site for them to reach a goal. Our Spirit Pack website allows the coach to be more modernized in taking care of his or her athletes’ needs, and making sure that the kids are provided with the proper equipment. The sites can be used by booster clubs for raising money for various projects like getting a new scoreboard, a new pitching machine, or whatever they need in their athletic program. They can be utilized for a particular school or sport, for example if the coach wants the athletes to show up with six items. We can set that store up with whatever specific items the coach prefers, and set a start and an end date for the store. Once the end date comes up, our dealer then takes the orders, embellishes them, and provides them to the school in an individualized bag for each student athlete. This new system relieves the coach of having to collect and manage all the money. We’re also near the end of a $100,000 renovation of our CoachesOnly.com website, which will allow every ADA member to be fully able to sell their products through e-commerce. They’ll be able to take orders, purchase orders, and sell not only to the athlete and the coach, but to anyone that wants to purchase products. Dealers will be able to customize the site for their local sales areas based on zip codes. It allows the dealer to have a site that ADA can manage, maintain, and administrate, while it also gives them flexibility to add product in to their area, or to take product out that they feel doesn’t sell in their area. It’s a change from our old site that was built some time ago. The web technology today has certainly improved, and this new site will give the ADA dealer e-commerce tools that are equal to those offered by major team and retail stores in the industry. We hope to launch the site by our fall show in November.” Hauff: “E-commerce for today's dealers should be understood. The question of how a dealer can benefit from e-commerce is very difficult to answer, as a dealer must have computer savvy staff to make it work. We believe in personalization, so we like face-to-face contact with our clients whenever possible. E-commerce has taken away personal relationships. Set up a PayPal account; take personal credit cards, charge the customer. E-commerce requires a quicker turnaround for delivery of products. What is the depth of inventory that a dealer must carry to satisfy e-commerce? School budgets, meanwhile, will not increase in the future unless the taxes increase in a district. The athlete, the parents or booster clubs do most of the additional purchases. Schools want products to last longer but pay less. More schools are bidding than ever before and with the Internet, the schools/clubs are able to check many sources quickly, not just the sales person who calls on them.” HOW AND WHY HAVE SPIRIT PACK/TEAM WEBSITES BECOME SO IMPORTANT FOR TEAM DEALERS AND THEIR CUSTOMERS, AND WHAT ARE DEALERS DOING TO TAKE ADVANTAGE OF SUCH WEBSITES?
Karsh: “We’ve adapted to the needs of e-commerce in the way of spirit wear parent/booster sites. The sites are in conjunction with 12
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our salesmen going out to a school, or a league that comes into our store. They want the capability of telling their parents, ‘Go to the Cal Pro website, and click on the booster wear, and place your orders through there.’ It’s taking it out of the hands of a team mom, and putting it back in the parents’ hands to support the league, the group, or the school. It’s definitely a necessity. But it’s in conjunction with our salesmen, and in addition to that personal one-on-one. Parents have found that when they try to do business with dealers that don’t have salesmen, they don’t know what they’re getting. Parents may find something online, and when they try to order it, they may find it’s not the right material, or it might not be the right color. Whereas a brick-andmortar store can fulfill that full circle of necessities: feeling fabric, making it accessible to the customer, and delivering a finished product. Schools sometimes don’t realize that spirit pack websites are a moneymaker for them, and that they’re a necessity to keep sports programs going. And that it’s very easy to establish, and at no cost to them. That’s what we try to emphasize with them – that the end result is that you can make money on this, and not get stuck with the wrong size of a certain item, and not get stuck at a table during a game. That’s what people seem to enjoy – that they don’t get stuck with goods afterwards.” Hauff: “We do a lot of websites for schools, clubs, and organizations – corporate and work organizations as well. That has been very important in the last four years or so. It’s taken some dealers a longer time to get up-to-date on it and understand it, because maybe they didn’t have someone in their organization that was computer-savvy on what to do, and how to set up a PayPal account, and that whole process. The ADA provides a person on staff that helps with that situation. We have a good amount of ADA members that have set up websites for these buying situations. Schools and clubs today don’t want to handle money. They want to accumulate it. you can provide them with the service of a webstore, they love it, because it takes it out of their hands. They still watch it, they still manage it, but they also stay completely out of it on the processing end. It also gives them a method of fundraising. So spirit packs are extremely important if a dealer today wants to be in the team business.” WHAT ARE SOME OF THE CHALLENGES THAT TEAM DEALERS FACE AS A RESULT OF THE ECONOMIC DOWNTURN OVER THE PAST SEVERAL YEARS?
Hauff: “One of the issues facing team dealers, as well as any retailer, is Internet sales where local/state taxes are not collected. This is the Main Street bill [Main Street Fairness Act] that is floating in the House of Representatives now. Also, a line of credit is much harder to obtain now with the government regulations placed on banks. Working capital in many stores is not large enough to carry the slower-paying clients in today's world. The Paydex Rating by D&B is very important for a dealer. A good Paydex number is essential for banking and for credit with vendors.” Karsh: “Most of us are very conscious of the Internet pricing of goods. We can compete with that, but the one thorn in our side is sales tax. In California, we charge sales tax to schools. But if they buy from an Internet company back East, they are not charged sales tax. So that puts us at a disadvantage. Hopefully either the state or federal government will come up with an equalizer to allow brick-and-mortar stores to stay in business.”
ASIDE FROM THE ECONOMIC ENVIRONMENT, WHAT DOES THE CURRENT LANDSCAPE FOR TEAM DEALERS LOOK LIKE? WHAT ARE SOME OTHER ISSUES FACING TODAY’S DEALERS?
Hauff: “Opportunities are available for team dealers who are aggressive, knowledgeable on the Internet and have a computer system which will provide complete purchasing/sales figures. Hiring qualified, dependable, eager staff is a major problem right now. I think recent graduates – from this year back to maybe 10 years ago – want money and don’t want to work as hard for it. The team business is not easy. Finding people to travel and call on schools is difficult. Today’s graduates want a desk job. We just hired a person that’s 58 years old. Older, more experienced staff candidates know how to work. They’ve gone through life. They’ve been up and down, and they have their family. It’s a lot easier for them to commit to a job than it is for a young person. Is that picking on young people? No. I think a young person needs to maybe work their way up. Karsh: “Potential hires with a strong work ethic are few and far between. We are lucky to find a good salesman - maybe one out of 50 applicants. It’s something that most people just don’t want to do. It’s a great way to make a living, and being an outside salesman is a perfect opportunity for a newlywed or individual with a young family. But most people prefer not building business. They want to step into guaranteed business, and they don’t realize that an outside salesman has to knock on doors. And sometimes those doors are not open for several attempts.” SINCE IT SOUNDS LIKE GOOD SALESMEN ARE HARD TO FIND, WHAT ARE THE QUALITIES THAT MAKE A GOOD SALESMAN IN THE EYES OF HIRING TEAM DEALERS?
Karsh: “A successful young team dealer salesman is normally someone that played sports at a high school or college level. They are usually personable, and someone that is at ease in conversational situations. They’re willing to go that extra mile for a coach. Follow-up is very important. When we’re interviewing them, we put them in a hypothetical scenario with a coach, and ask them how they would approach the situation. For most of our guys, after about the first year on the road, it starts to really snowball, and if they stick with it, they can make good money. But it’s really about perseverance, dedication, and honesty.” FOR MANY ADA MEMBERS, RETAIL STOREFRONTS ARE A PART OF THEIR BUSINESS, WITH 26 PERCENT (OR OVER $55.9 MILLION) OF TOTAL ADA MEMBER SALES COMING FROM RETAIL. ARE THERE ANY RECENT TRENDS OR DEVELOPMENTS FOR TEAM DEALERS WITH A RETAIL FRONT?
Hauff: “The thing that happens today in retailing - and it’s why some team dealers don’t want a retail front - is that the fashion volatility of product makes things difficult. Whether it’s shoes, or whether it’s Under Armour, Adidas, New Era Caps or NFL-licensed products, fashion preferences are volatile today that we have to be really careful what we order so that we’re not heavy on inventory, and that we can turn that inventory around and make money. Whatever you have left over at the end of the season is no good for profit. The thing that’s difficult today is determining what you stock. We go to our spring show in July, and in South Dakota we don’t start planning anything until April, so we’re talking nine months minimum where we have to plan for the next spring. The fall show that we go to in November is pretty solid because you know what the
helmets and shoulder pads – those kinds of products - are going to be. That isn’t so volatile. But when it comes to ‘What’s the baseball glove?’ and ‘What’s the hot bat?’ that’s much more difficult. The College World Series helps, but that doesn’t determine what’s going to happen next spring. Overall, I think the retail side of things is important from a cash flow perspective. But it’s very difficult when it comes to purchasing products that are fashion-oriented or trendy.” Karsh: “Shoppers are very, very aware of pricing. Team dealers with a retail front must adapt to matching an Internet price to keep business. Foot traffic is down, and has slowly been declining. We have to offer the popular items, and be aware of trends. That helps bring people into the door. Custom socks are very trendy right now. Offering them in different patterns and colors is important, and even offering them in colors that you may not normally carry. Another trend includes mouthpieces, and different brands offering different patterns on those mouthpieces, whether it is a metallic gold finish, or a picture of a flag. Those have been strong sellers for us. Neons and floursecents are still popular, whether it is shoes or clothing. Customizing individual t-shirts is still a strong trend. Athletes expressing their individuality and personality have been strong for us. They want to stand out a little bit more, whether it’s a flashy pair of shoes, an Under Armour garment, or a mouth guard with a different color.” WHAT ARE THE KEY PERIODS FOR A TEAM DEALER’S RETAIL FRONT?
Hauff: “Any time you have a cycle change is key. Our biggest one is back-to-school. That includes, in our case, football, volleyball, cross country, and soccer. For the retail person, those are very critical to be prepared for. We also come back with fall fashion. Your Nike, your Under Armour, your Adidas. What do they have for fall? Is it the new hoodie look? Is it the color of the hoodie? Most of those products you have to place orders for six months out. Sometimes it’s a crapshoot. For basketball season, we need to be ready specifically in October, but what’s happening in many states today is that summer basketball camps require you to have all these products available year-round.” WITH THE ECONOMIC AND TECHNOLOGICAL LANDSCAPE CHANGING SO MUCH OVER THE PAST SEVERAL YEARS, HOW HAVE ADA AND ITS TEAM DEALERS MOVED FORWARD AND MODERNIZED?
Schneider: “The ADA’s task is to provide services and benefits for our members to help them not only survive in a very competitive marketplace, but to also maintain profitability. The average ADA dealer has been in business for 42 years and they have not survived in business that long by not adapting to a changing environment. It is the ADA’s job to help them in every way we can. In the 70’s, it was catalogues. Many of these catalog houses are now gone. In the 80’s came the big box retail operations. Some of them are still here, many are gone. In the 90’s, the Internet started to impact the market to a small degree. Now, in the 2000’s, e-commerce has become a more important sales avenue. The younger coaches are more Internet savvy and do their research - and in some cases their purchasing - on the Internet. In order to succeed in this marketplace, the ADA has to continue to give our dealers the tools that allow them to be competitive with the large range of competition that exists today and into the future.” ■
TEAMBUSINESSDIGITAL.COM
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For full year calendar go to sportsonesource.com/events
SEPTEMBER
4-6 FFANY New York, NY
5
Surf Expo Board Demo Day Orlando, FL
6-8
Surf Expo Orlando, FL
8-10
NBS Fall Semi-Annual Market Fort Worth, TX
16-19
Worldwide Spring Show Reno, NV
JANUARY
18-19
Health & Fitness Business Expo Las Vegas, NV
6-8
ATA Show Nashville, TN
18-20
Interbike International Trade Expo Las Vegas, NV
7-9
MWSRA January Show Madison, WI
25-26
Sports & Fitness Industry Assoc. Industry Leaders Summit Baltimore, MD
7-9
WWSRA Rocky Mtn Preview Denver, CO
26-28 30-2
Imprinted Sportswear Show (ISS) Ft Worth, TX
7-9
WWSRA Northwest Preview Portland, OR
9-11
Surf Expo Orlando, FL
OCTOBER
13-14
WWSRA Intermountain Preview Salt Lake City, UT
10-11
The Retailing Summit Dallas, TX
13-15
WWSRA NorCal Early Preview Reno, NV
29-31
Sport Source Asia Hong Kong
14-17
SHOT Show Las Vegas, NV
29-1
NASGW Expo Grapevine, TX
15-18
NBS Winter-Specialty Market Fort Worth, TX
16-18
Sports Licensing & Tailgate Show Las Vegas, NV
17-19
Imprinted Sportswear Show (ISS) Long Beach, CA
OIA Rendezvous San Diego, CA
NOVEMBER 1-3
NBS Fall Athletic Market Austin, TX
5-7
TAG Fall/Winter Show St. Louis, MO
15-17
A.D.A. Fall Show San Antonio, TX
24-26
Sports Inc. Athletic Show Las Vegas, NV
DECEMBER 2-4
EORA SE Winter Market Asheville, NC
3-4
WWSRA NW Early Preview Seattle, WA
3-5
MRA December Market Lansing, MI
14
AUGUST 2013 I TEAM BUSINESS DIGITAL
10-11
EORA FLA Winter Market Punta Gorda, FL
10-11 WWSRA NorCal Early Preview TBA 11-12
Atlanta Shoe Market Atlanta, GA
21 ORWM Demo Day TBA 22-25
Outdoor Retailer Winter Market Salt Lake City, UT
30-2
SIA Snow Show Denver, CO
FEBRUARY 3-4
SIA On-Snow Demo Copper Mountain, CO
3-4
SIA Nordic Demo Copper Mountain, CO
5-7
FFANY New York, NY
TRADE ASSOCIATIONS | BUYING GROUPS
CALENDAR Athletic Dealers of America 1395 Highland Avenue Melbourne, FL 32935 t 321.254.0091 f 321.242.7419 athleticdealersofamerica.com National Shooting Sports Foundation Flintlock Ridge Office Center 11 Mile Hill Road Newtown, CT 06470 t 203.426.1320 f. 203.426.1087 nssf.org National Sporting Goods Association 1601 Feehanville Drive / Suite 300 Mount Prospect, IL 60056 t 847.296.6742 f 847.391.9827 nsga.org Nation’s Best Sports 4216 Hahn Blvd. Ft. Worth, TX 76117 t 817.788.0034 f 817.788.8542 nbs.com Outdoor Industry Association 4909 Pearl East Circle / Suite 300 Boulder, CO 80301 t 303.444.3353 f 303.444.3284 outdoorindustry.org Sports & Fitness Industry Association 8505 Fenton St., Suite 211 Silver Spring, MD 20910 t 301.495.6321 f 301.495.6322 sfia.org Snow Sports Industries America 8377-B Greensboro Drive McLean, VA 22102 t 703.556.9020 f 703.821.8276 snowsports.org Sports, Inc. 333 2nd Avenue North Lewistown, MT 59457 t 406.538.3496 f 406.538.2801 sportsinc.com Sports Specialists Ltd. 590 Fishers Station Drive / Suite 110 Victor, NY 14564 t 585.742.1010 f 585.742.2645 sportsspecialistsltd.com Team Athletic Goods 629 Cepi Drive Chesterfield, MO 63005 t 636.530.3710 f 636.530.3711 tag1.com Worldwide 8211 South 194th Kent, WA 98032 t 253.872.8746 f 253.872.7603 wdi-wdi.com
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