Id like to take a second to chime in on this topic...
Seeing that I see both sides of it (online sales vs retail sales) I can
understand both viewpoints. A big advantage that alot of the larger
e-tailers on the net have is in puchasing in volume obviously. I feel
this advantage shouldnt be eliminated because investing that type of
captial should entitle you to buy in a better price. In our situation
by buying at a better price it allows us to operate our retail business
at a lower price to the consumer and yet retain our profit margin.
From the proshop point of view the four BIG problems that need to be addressed
and would flatten the field out somewhat for everyone is:
o A uniform Internet sales tax
This is a huge break that causes people to buy on the net. Why not try
and save a few bucks if you can. States are losing a TON of revenue due
to this.
o Basement-dwelling drillers and pro shops
This is my biggest pet peeve in the industry. Im sure everyone of
pro shop owners here have heard "Hey so and so has a press and is drilling
in his basement/gargage. We can save a few bucks!!". Not only does
this lose you a ball sale, it loses you a customer for drilling as well, as
well as accessories, etc, as this mentality extends to this.
o Ball and Bag Margin
This is one of the biggest blows to the proshop industry as a whole. For
even medium sized shops it makes no sense to have a stock of any of this as
because the sales have just shrunk to the point of not making economic sense
in placing that kind of capital into a item that doesnt move. Roller bags
and high end shoes are especially prone to this problem. It doesnt make
much sense to stock a pair of shoes that might cost the shop $115.00 and have
them be forced to sell them at 129-135 plus tax to have any chance of
catching these sales that the customer perceives as having "no value added"
compared to buying online.
o Society in general fostering the mentality of "Give it to me as cheap as
possible".
Sadly this isnt limited to the bowling industry. The rise of what I like
to call the Wal Mart mentality is making it next to impossible to make
a decent living for alot people anymore, including the small businessman
who takes the chance and lays money on the line to follow a dream of his.
There is nothing wrong with shopping smartly, but when it simply comes down
to the last cent and nothing more and not service and knowledge, what can
you say?
Many may ask why I would like to see the above situations addressed since
we sell online as well as having 5 retail shops? Simply because I believe
the online model of doing sales is flawed and broken and cannot continue to
survive on 5-8 points profit. Its easy to exist with that when it is only
a one person operation. Start adding overhead, warehousing, etc and soon
enough you see that economically in the long run it is not viable. Plus the
customer relationships that are developed on the retail side cannot be
understated. Being just a number and another screen for me personally is
a bit bland but yet it is indicative of how society has become.
----
Retail Wise, Approx 1 Week Into New Pricing Structure
Our experience so far is that across all Ebonite brands sales and interest
have been way off as the customer is seeing a higher price for these balls
(roughly 10 or 15 higher depending) and ask why there is a price difference.
Most seem to be gravitating more towards Brunswick and Storm at this point.
Unforunately with the way the economy is right now, at least in the Cleveland
area, price DOES come into play , even at 10 to 15 dollars. The only real
Ebonite stuff that is moving at this point are Black Widows/Pearls/Bites.
----
Thanks,
Joe
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