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.
