BallReviews
Equipment Boards => Brunswick => Topic started by: 3835 on December 16, 2024, 08:58:49 PM
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Classic Products! Buying a distributor with multiple locations will set up an interesting dynamic. You are now responsible for pricing competitor products that are in direct competition with you. Will they increase Storm and Motiv stuff?
11th Frame indicates this rumor has been confirmed by 3 individuals in the industry.
Stay tuned!!
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It's not a rumor at all, it's official, Brunswick sent an email out on it.
Be very interesting if SPI and Motiv continue to use Classic or not, the press release says Brunswick will only sell through Classic, and they are going to continue to carry the other brands, making it sound like it'll be up to them if they want continue or not.
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Wow….so Ace, Island, DiLaura, and all other distributors are out on Brunswick??? Very interesting choice. Here in Ohio Ace is 10 minutes from me. I can run and get anything I need same day. Now Classic (Ft Wayne) is at least 1 day delivery plus you need to order enough for free shipping.
Very interesting…
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Just saw the release. April 30 is the final day other distributors can purchase Brunswick products to sell. They can continue to sell after that date - just cannot purchase any additional inventory.
I think some distributors may go out of business losing significant revenue streams.
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I don’t see a whole lot of good coming from this: In my opinion this is going to result in price increases because there will be no price competition for the Brunswick brands so they can charge what they want. The smaller distributors will really be hurt as they will be losing the revenue from the Brunswick brands::: and the smaller pro shops could potentially be hurt as well if there are price increases and they get stuck with higher priced products that they can’t sell….
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Dont forget this part too. If someone wants a Brunswick brands ball a shop is going to order from Classic. If the shop normally uses a different distributor for whatever reason, the shop is going to incur a shipping charge from Classic (shipping is usually waived once you order X amount in one order). Is the shop going to pass on the shipping cost? Is the shop going to eat the shipping cost? How about extra delivery time from Classic when compared to another distributor. My shop will go to Ace during the day and pick up items. Starting in May thats not possible if you want a Brunswick item.
We shall see how this all works out. I think some of the smaller distributors will go under or just close.
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Dont forget this part too. If someone wants a Brunswick brands ball a shop is going to order from Classic. If the shop normally uses a different distributor for whatever reason, the shop is going to incur a shipping charge from Classic (shipping is usually waived once you order X amount in one order). Is the shop going to pass on the shipping cost? Is the shop going to eat the shipping cost? How about extra delivery time from Classic when compared to another distributor. My shop will go to Ace during the day and pick up items. Starting in May thats not possible if you want a Brunswick item.
We shall see how this all works out. I think some of the smaller distributors will go under or just close.
To your last part, it will be interesting to see how shops handle it, if they decide to say no to stocking or ordering Brunswick products because their distributor doesn’t carry them? I know a few of the small shops in my area are big volume with B7, but don’t use Classic, so they have to make a decision there, and I know other shops there are largely SPI and will take this as a chance to say sorry, we aren’t going to stock or even order B7 stuff.
It will take a bit for dust to settle, but definitely will be interesting.
With bowling dot com being the online arm of Classic, makes me wonder how that will evolve over time with this as well.
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Bowling.com is its own business (and owner of this website), that uses Classic as their main supplier and drop shipper.
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There were other manufacturers almost ready to pull the trigger on doing their own distribution almost 20 years ago. Brunswick did a deal like this because the logistics are already in place. This is going to change the model drastically. Better for manufacturers and worse for pro shops. Probably going to kill all but a few distributors.
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Agreed its bad for pro shops and is going to kill all but a few distributors.
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Bowling.com is its own business (and owner of this website), that uses Classic as their main supplier and drop shipper.
Cheapbowlingballs.com also uses Classic. Interesting to see what those sites look like after the takeover.
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Interesting one band that spends large amounts of money on staff vs another buying out brands and distributors.
I assume most pro shops use more then one distributor. One distributor may get the bulk of the orders while the other is for various deals and closeouts.
Going forward Brunswick cutout the middle man meaning they technically are making more per ball then any other brand. No reason to raise the prices higher then normal cost.
In terms of the other brands Classic carries there is no reason to change any of those prices because you are still a distributor making money selling those brands at the same tier structure or there about of the other distributors. So you are still treating Classic as a normal distributor who also has exclusive product.
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I wouldn't be surprised after this gets going smoothly for these warehouses to be fulfillment centers for direct to consumer sales. Brunswick's plan has got to be something like that, otherwise they just got into the collections business. The number of pro shops that owe distributors money is astonishing.
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Interesting one band that spends large amounts of money on staff vs another buying out brands and distributors.
I assume most pro shops use more then one distributor. One distributor may get the bulk of the orders while the other is for various deals and closeouts.
Going forward Brunswick cutout the middle man meaning they technically are making more per ball then any other brand. No reason to raise the prices higher then normal cost.
In terms of the other brands Classic carries there is no reason to change any of those prices because you are still a distributor making money selling those brands at the same tier structure or there about of the other distributors. So you are still treating Classic as a normal distributor who also has exclusive product.
Don't forget the current threat that their equipment might get hit with a 20% tariff as early as January 21st. They might have made this move to cut out the middleman in order to hold the line on pricing. Now if the tariff on products from Mexico becomes a reality, they don't have to pass along a 20% price increase to distributors. If there are no tariffs, then they stand to make a little extra money.
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A year from now I want to look back to see how the first 6 months of this went. May not know everything by then, but we will know much more than the guessing game we are playing right now.
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And before it officially closed sounds like the deal is off