Showing posts with label outdoor retailer. Show all posts
Showing posts with label outdoor retailer. Show all posts

Saturday, May 23, 2009

A Pro Deal for All Americans

In the outdoor and fitness industries, a "pro deal" is a discount given to employees of outdoor and fitness industry companies. This discount is usually at least 20% off retail, and the best discount I know about is 30% off the wholesale price. The only consumer equivalent would be a warehouse sale, but pro deals are usually in effect all year long. There are even websites set up exclusively to sell discounted merch to industry pros.

The rationale behind the pro deal system has several points. The first reason is promotional, and this is where the pro deal system got its start. Manufacturers want influential people to wear their brands. Who is more influential than those whose job it is to introduce consumers to a new activity? For example, a ski instructor might teach lessons to hundreds of skiers each year. If his eager pupils are impressed with him and his sexy $500 Spyder jacket, they might very well pony up full retail for apparel from Spyder in the future, though the instructor paid far less. This pro deal offers the manufacturer a powerful branding opportunity.

The second reason is charitable. In some industries, the average employee doesn't earn enough to be a customer of that industry. The cycling industry is a great example. Since the average bike shop's profit margin might be as low as 35%, the typical shop rat can't possibly be paid enough to afford a $5,000 bike. Bike shops usually offer an employee purchase program, but many manufacturers of high margin items graciously extend pro deals to their own kind.

The third reasoning is simple gear lust and stinginess. Most people who participate in a gear-intensive activity love them some sexy gear. Most people like paying less than full price. So employees in an industry will offer reciprocal pro deals to other companies just so they don't have to pay full price. In this way, the outdoor and fitness industries are a complicated network of pro deals.

Pro deals have rules. You can only order for yourself. No purchasing for friends or family. Some pro deals have an annual dollar maximum. Most pro deals will only ship to your work address. The most stringent deals require proof of your employment in the industry, like a pay stub, business card, and current catalog. Some pro deals are on a limited selection of products. Most pro deals expire at the end of each calendar year, which causes a flurry of pro deal paperwork early each spring. Industry tradeshows like Interbike and Outdoor Retailer are a flurry of pro deal trading; some companies actually send reps to each booth with the next year's pro deal form or unique login.

There is a certain sense of backalley shame in the pro deal system; people tend to lower their voices when discussing the pro deals available to them. "Pro forms", the special order forms that employees use to fax in or email pro deals, are secured in the back of filing cabinets and passed around surreptitiously. No one wants to risk losing their special pro deal by sharing it with someone who might blow it for them by abusing the deal or ordering too much. If you have a sweet pro deal, you only offer access to those you trust.

But what if everyone had a pro deal?

The Personal Health Investment Today Act of 2009 promises just that. The Sporting Goods Manufacturers Association offers a breakdown of what the "PHIT Bill" might mean. Basically, the PHIT Act would extend the Flexible Spending Account tax break to include some purchases of equipment used in physical activity.

Depending on your tax bracket, that could mean 20-40% off your next TREK bicycle, gym membership, Gregory backpack, gym class or ski lesson, or Garmin GPS-enabled fitness watch. That, my friends, is a pro deal every American should support (though I certainly wouldn't want to have the job of approving or denying purchases or, for that matter, making up the tax revenue shortfall).

The bill's sponsors offer these justifications:

  • 20% of Americans aged 2-19 are overweight or obese.
  • 8 of the 9 most expensive illnesses are more common in overweight people.
  • Between 1981 and 2001, per capita healthcare costs rose 27% because of the increase in the number of overweight Americans.
  • The WHO estimates that, in the U.S., a $1 investment in physical activity would reduce medical expenses by $3.20.
So score yourself a pro deal: ask your representative in the House to sponsor the PHIT bill.

Saturday, February 28, 2009

Outdoor Retailer Will Not Use the Energy Solutions Arena Again in 2009

Kenji Haroutunian, the Show Director for the Outdoor Retailer tradeshow, commented on a prior and incorrect version of this blog post. Kenji says that OR will not use the Energy Solutions Arena for the 2009 Outdoor Retailer show or any future show. I misread an email from an OR account rep.

2009 exhibitors should be pleased that Kenji and the OR staff have been responsive to feedback about Outdoor Retailer. Placing all exhibitors in the same building is an improvement over last year's show, both for exhibitors and retailers, and shows that OR runs its show in good faith and with respect for all attendees.

Monday, August 11, 2008

Outdoor Retailer 2008: "eet's okay, you vill have ze music"

Today is our fifth day in the ESA, where show organizers are attempting to liven up the scene with non-stop music. Unfortunately, the ESA playlist is quite short, and we've been listening to U2, The Who, and Goo-Goo Dolls all day, every day.

An OR booth staffer at our hotel was saying goodbye to two of her coworkers who were catching a flight back to Germany. She said, "I'm going to be lonely in the booth without you!". A coworker replied, "Eet's okay -- you vill have ze music."

In other news, we have our first tradeshow-related injury: Jen has a blister.

Sunday, August 10, 2008

Outdoor Retailer 2008: Sunday night schwag tally

Four days. It takes four days for me to become thoroughly tired of eating restaurant food.

Today's schwag haul is likely to be the most valuable booty-load of OR:

  • Osprey Talon 5.5 backpack - $20
  • 16 oz. stainless steel bottle with carabiner
  • National Parks Conservatio Association "fanny" pack
  • sweet EK USA lanyard
  • carton of Sharkies
  • sample pack of Sportwash

I've also amassed a 10 inch stack of magazines, including some outdoor industry mags I've never heard of before.

I'm now getting concerned about luggage space.

Saturday, August 9, 2008

Outdoor Retailer 2008: Saturday night schwag tally

Jen: Falcon Pocket Guide to OR, DeFeet "police" cycling socks, eVent keychain, USA Triathlon cycling socks, Camerons Smoker Bag for oven/grill/campfire

Dave: Falcon Pocket Guide to OR, DeFeet "police" cycling socks, eVent keychain, USA Triathlon cycling socks, Camerons Smoker Bag for oven/grill/campfire, Spira t-shirt, Primus foldable fork and spoon





Outdoor Retailer vs. Interbike

OR # attendees (2008): 6,300 buyers + 12,560 exhibitors + "other" = 22,000
Ibike # attendees: 11,368 buyers + 11,606 exhibitors = 22,974

OR # exhibiting companies: 1,020
Ibike # exhibiting companies: 735

Subjectively, there's a noticeable difference in the personality of the shows. Interbike has always had a slightly sinister undercurrent to me, as if most attendees are trying to take advantage of you or get away with something. Perhaps this is due to the show's location in Sin City?

Outdoor Retailer is all smiles and tans and people dressed like normal people. The conversations with attendees are longer, more relaxed.

Interbike is more contrived, with tattoos, cycling "fashion", hair dye and chains. Conversations are shorter, more confrontational, more competitive. Perhaps this is due to male dominance of the show?

At Outdoor Retailer, all the beer is free and free-flowing. Then again, it's all nearly alcohol-free! At Interbike, your goal is to scam free booze.

At Outdoor Retailer, the industry party was open invitation and featured a badminton tournament, a drum circle, and a set from Rusted Root.

Interbike's unofficial industry party, the Sinclair party, is invite only and you nearly have to beg to get an invite. Last year's Sinclair party featured impossibly loud club music and six scantily-clad pole dancers.

Outdoor Retailer 2008: result of yesterday's Energy Solutions Arena uprising

We ESA exhibitors passed around a petition yesterday asking Nielsen Business Media to post more signage leading buyers from the back exit of the main show floor...

...across this street and around these, umm, buyer barriers...

...into the ESA, through the concourse, and down the stairs to the arena floor. The signage today is much improved. Except for the print job on this one below. What's wrong with this picture?

Outdoor Retailer 2008: booth review (priciest, best attended, most inviting)

I do believe that Life is Good wins the award for spending the most on promotion at OR. Check out this exhibit:


Life is Good also sponsored the industry party and produced a "goodminton" tournament.

The booth with the highest body per square foot ratio, though, was Smith Optics:


I found this booth to be the most inviting, and yet the worst-branded. I think it was Merrell (a Columbia brand), but I'm not sure...

Friday, August 8, 2008

Outdoor Retailer 2008: Friday night schwag tally

Dave: tasmanian merino wool hiking socks, smartwool arm warmers, collapsible cup
Jen: tasmanian merino wool hiking socks, smartwool arm warmers, collapsible cup

Outdoor Retailer 2008: Industry Party (plus a goodminton tournament!)

We exhibitors in the ESA closed our first OR show day disappointed and, in some cases, with some anger. A petition circulated urging Nielsen Business Media to add more signage to encourage floor traffic from the main show. The squeaky exhibitor gets the worm, and we were told that Nielsen would make hourly P.A. announcements on the show floor to spur buyers to the ESA, add signage from the main show to the ESA including sandwich boards every 30 feet from exit to entrance.

The evening ended on a high and hopeful note, though. The OR Industry Party was just outside the ESA, which should show buyers how to get to our show floor tomorrow. Free beer from Wasatch Brewery flowed like wine:


And there were a heckuva lot of people:


The Life is Good t-shirt company sponsored a "Goodminton" tournament, with 64 teams competing!






Outdoor Retailer 2008: schwag tally (friday noon)

Current schwag tally:

Jen: 2 pairs smartwool socks, 2 notebooks, notepad, 1 Flair Hair (blonde)
Dave: 1 pair smartwool socks, 1 notebook, 1 notepad, 1 headache, 1 Flair Hair (brunette)


Outdoor Retailer 2008: the Energy Solutions Arena is bad for exhibitors

Nielsen Business Media produces the Outdoor Retailer show. OR has been in Salt Lake City for 12+ years, and the only convention center of any size here is the Salt Palace, which is no longer big enough to contain the outdoor industry's many exhibitors. Nielsen's policy is to place exhibitors based on seniority - the longer you've been exhibiting with OR, the better your placement. Since the show is now too big for its britches, Nielsen's remedy has been to expand across a city street to the Energy Solutions Arena, home of the Utah Jazz basketball team, and place the newest exhibitors there. This is a bad idea, executed poorly.

Here's the main hall:


  1. The floorplan provided to exhibitors before the show and now posted in the main hall makes it appear as if the ESA is an offshoot room of the main hall, when it's a 1-4 block walk, depending on where you leave the main hall.
  2. The signage is infrequent and poor. There's no signage in the main hall directing you how to best exit the hall to get to the ESA. There's no signage on sidewalks. The ESA is not visible from 75% of the main hall exit doors. The ESA has a bunch of gates and construction barriers that are confusing.
  3. If you make it to the ESA building, there's only one set of doors to get in. When you enter the ESA, you are one floor above the show floor. There are only two (poorly signed) access points to the show floor from the entrance and you have to walk by some exhibitors. Some might not realize there's a show floor off the concourse.
Worst yet, we've paid the same amount for booth space as exhibitors in the main hall. We definitely feel like second-class exhibitors.

Visitors can take stairs or an elevator from the concourse to the show floor. Should you take the stairs, you'd have this view on the way done:

Here's the extremely inviting and well-signed hallway from the elevator.


There is good news, though. As its a pro sports arena, the lighting is bright!

Since all the exhibitors in the ESA are new, we've got kind of a hodge podge of neighbors. Like these fine folks immediately to our left:

And this endurance sports fridge-freezer maker:

Outdoor Retailer 2008: Industry Breakfast - getting kids outside

This morning we attended the Outdoor Industry Association industry breakfast. This is one vibrant community! Check out the attendance, at 7 a.m. no less.

This year's OR theme is about engaging young people with the outdoors. Both speeches related personal anecdotes about children and outdoors adventures, and I found it pretty inspiring. We listened to speeches from Frank Hugelmeyer, OIA president, and from Larry Selzer, director of the Conservation Fund. Both speeches focused, with alarm, on the youngest generations lack of engagement with the outdoors, citing childhood obesity, shocking focus group surveys about fear of the outside, lack of cell reception, etc. Hugelmeyer related hopeful anecdotes about his 12-year old son's recent experiences with backpacking and flyfishing. Selzer used storytelling to describe how the outdoor industry needs a compelling story, like 1962's Silent Spring, to inspire our culture to get outside.

Thursday, August 7, 2008

Outdoor Retailer 2008: International Buyer's Reception - it's a trap!

Have you ever been to one of those high pressure time-share sales pitches? I went on a trip to Florida with some high school buddies, and we all marveled at how low the hotel rate was until the trip planner said one morning, "Okay, this morning we've all got to go to breakfast with this guy. It's no big deal. We'll be back before Typhoon Lagoon even opens." Three hours later, we were all fried from the glaring light of an extended high pressure sales pitch from a rotating team of three interrogators.

Well, chalk one on the board for those wily Utahans. Contrary to our belief, there was not a single international buyer at the International Buyer's Reception. Instead, we enjoyed some speeches by the glad-handing Executive Director of the Salt Lake City Chamber of Commerce, a representative from the Utah Governor's office, and some sales people from the Utah World Trade Center. It was a sales pitch. "Use our services to export your schtuff."

They all looked like this:


And we, the duped, looked more like unshaven guys in shorts, t-shirts, and sandals.

However, there were hors d'oeuvres and free beverages.


So who really got duped, Utah?!

Outdoor Retailer 2008: pre-show setup

This begins a series of posts about the Outdoor Retailer tradeshow at the Salt Palace Convention Center in Salt Lake City, UT. The show is Aug 8-11, and we're exhibiting for the first time. OR is the biggest outdoor industry tradeshow on the planet, and I've been hoping that I'd someday make it. Share in the outdoors-related capitalism!

A brief how-to for aspiring OR goers and exhibitors...

First, figure out how to get your stuff to the show floor. If you've got some nice 4' x 6' signage, that might mean some creative jamming of signage into a rental car.


Second, realize that your booth is located outside the main hall, across a 6-lane street, and, depending on how you exit the main hall, either a half-block or a three-block walk from the big exhibitors.

We knew that our booth location, "ESA318", was in the Energy Solutions Arena. It turns out that "Energy Solutions Arena" means "like the Pepsi Center". Energy Solutions is a company and the arena is an arena. I was thinking that ESA was some Outdoor Retailer "green initiative". Also, note that the building isn't any prettier on the inside. The entire thing is basically a giant block of hollowed out concrete.

Next, check out the crates. There were stacks of crates this high and higher along two entire city blocks, each emblazoned with its own outdoor industry company logo. Eep! I even got to see the Patagonia crates!

Scope out the competition. Okay, we're not competing with hardly anyone at OR, and certainly not Life is Good. However, check out this astounding booth! This thing must have been 80 feet by 80 feet! I couldn't possibly get the whole booth into less than three frames. It's two stories and beautiful - check out all those wood timbers. This thing is bigger than the Pearl Street Life is Good store--on just one floor!

Finally, set up your own booth. Everything arrived safe and sound and we were done with setup and off the show floor in under two hours.

Next up:
>the international buyer reception 5-6:30 pm tonight in the ESA
>show opens 9am tomorrow, stay tuned for tomorrow's hilarious documentation of our booth neighbor to the left...