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CCM going direct to consumer?


ZeroGravitas

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10 hours ago, coopaloop1234 said:

That's interesting, though what benefit does that bring to the consumer?

They're charging the same prices that you get at retail. So it puts more money in their pockets and cuts out the local distributors.

 

No benefit to us, only if they drop the prices. Stores out there charge up 50% to 60% mark up to the actual value. Which they pay ccm. Prices are still ridiculous. 

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The simple reason why they will have limited colour choices, etc. in this style of direct to consumer is the fact that now they have to do what everyone else who carries their gear has to do: have enough stock on hand to satisfy demand, but not so much that they have to take huge losses. When you add in the direct sales model, now you have to add in a place to store the item, shipping and receiving for the store part, staff to run the site, staff to answer questions, handling returns, and all of that stuff. Selling adds a whole new layer.  Many manufacturers go the route of having distributors and whole sale operations so all they have to do is make stuff. Make bunches of widgets and sell them to a middleman or to the stores. Add in that element of selling it yourself and you’ve taken on an entirely new risk. That 100% mark up pays for all of the costs associated with selling an item. If CCM sold their wares at 50% off, most of the dealers would bail. Stores place orders to the manufacturers for gear colourways, etc. In essence, when you see “Diluted Ape Goalie exclusive”, it was a mass custom order. CCM doesn’t want to be hanging onto pink senior pad sets. Now, if they are finding success with this model, then they could possibly expand, but I doubt that they want to do like many retailers: lots of stock gear, sell everything possible, then have massive sales at the end of the model cycle. Since you wouldn’t be able to negotiate like you sometimes can with a small retailer (i.e. “any way you could throw in some tape or a dangler since I just bought $3K worth of stuff today?”), I would only see custom being cut out from the retailer, POSSIBLY. Even there, a store would possibly allow wiggle room in pricing or extras in a head to toe custom order, something I doubt CCM would do. Limited direct to consumer with full prices isn’t about greed, even though it may seem like it. 

Edited by bunnyman666
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