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the buzz on the flyfishing biz
®
TRADE
Inside
LET’S GET REAL
Proprietary Products Heating Up Market/
Burke on Hair and Hackle/Is Groupon for You?/
Icon Closes its Doors/Undercover Fly Shop Guy/
Costco and the Trust Factor/Travel Tips, and More
June 2011 AnglingTrade.com
the buzz on the flyfishing biz
CONTENTS
Features
20 It’s a “Proprietary” Deal
Who’s really the middle
man? We’ve seen
manufacturers sell direct for
ages... now we’re seeing
fly shops decide that the
manufacturer might be expendable... that
is, for those who have the guts, marketing
moxie, and contacts to produce their own
goods... and then sell them, en masse.
By Jay Cassell
28 A Hairy Situation So, the
ladies like to wear hackle feathers in their
hair. Depending on who you are, that’s
either mannah from Heaven, or the Devil’s
work. What are fly shop guys gonna do?
Resent fashionistas? Horde tampons for
retribution? Or just roll with it, deal with
it, cash in (as possible), and wait for the
proverbial worm to turn? By Monte Burke
®
Departments
36 Adventures in Fly Fishing
Costco concerns, direct sales, and
the tenuous retailer-manufacturer
relationship... Do you really have to
wonder which companies are behind the
fly shop? After all, actions speak louder
than words? By Kirk Deeter
Tim Romano
[email protected]
8 Currents
The latest people, product and issues
news from the North American fly fishing
industry, including forecasts for ICAST,
Outdoor Retailer, and a preview of IFTD...
where AT will, for the first time, host the
“New Product Showcase.”
Art Director
Tara Brouwer
[email protected]
shovelcreative.com
Copy Editors
Mabon Childs, Sarah Warner
Contributing Editors
Tom Bie
Geoff Mueller
Ben Romans
Andrew Steketee
Greg Thomas
Contributors
Monte Burke, Jay Cassell, Michael Gracie,
Bill Marts, Will Rice, Steve Schweitzer
Photos unless noted by Tim Romano
18 Travel
Be a client advocate. After all, the
traveling angler might be looking at you
to help them make the “trip of a lifetime”
happen, without any hitches. Who better
than you, to offer fair, honest planning
advice? By Bill Marts
30 Recommended Reading
A hot threesome
of relevant and
worthy printed
works... on Rocky
Mountain National
Park, small stream
fly fishing, legends
of the Florida
flats scene.
savvy, business consultant out of the whitecollar board room world, and slapped him
smack-dab into fly shop retail. Here’s what
an ideal target customer-turned fly shop guy
has to say about working the other side of
the register. By Michael Gracie
Reviewed by
Kirk Deeter
40 Six Ways Groupon Can
46 Backcast
A post-mortem look at a former retail
icon-- Kaufmann’s Stream Born. What
happened? Are there lessons to be
learned? By Tom Bie
Angling Trade is published four times a
year by Angling Trade, LLC. Author and
photographic submissions should be
sent electronically to
[email protected].
Angling Trade is not responsible
for unsolicited manuscripts and/
or photo submissions. We ask that
contributors send formal queries in
advance of submissions. For editorial
guidelines and calendar, please
contact the editor via E-mail.
Printed in the U.S.A.
Advertising Contact: Tim Romano
Telephone: 303-495-3967
Fax: 303-495-2454
[email protected]
Mail Address:
PO Box 17487
Boulder, CO 80308
Street Address:
3055 24th Street
Boulder, CO 80304
AnglingTrade.com
3
AnglingTrade.com / June 2011
in Internet marketing (at least for now...
that changes every day). Some fly shops
are cashing in big on the opportunity. But
will others be left holding orders they can’t
honestly fill? By Steve Schweitzer
Kirk Deeter
[email protected]
Managing Editor
Retail We took a highly decorated, tech-
Stoke (or Wreck) Your Shop
Business Groupon is the hottest thing
Editor
6 Editor’s Column
32 Do (Fish), on the Magic Bus
Our writer delves
into a niche
marketing concept
for fly shops that’s
somewhere between
“high-end destination travel” and guiding on
the home river. But does this “in-between”
destination fishing idea really have
“wheels?” By Will Rice
TRADE
a picture should say
a thousand words.
“ummm, where’s the fish?”
adds up to only four.
if Your photo album onlY mumbles things like “the scener
Y was fabulous,”
then You’re clearlY not fishing rio leaders and tippets.
In order to get a proper, look-at-this-thing, trophy-shot, grin-’n-grab, braggin
g-rights, fish-photo –
you have to actually land the darn thing. Whether it’s a small spring creek,
a skinny bonefish flat or
a swift steelhead run, the true advantage is where the fly line ends. RIO’s
constant drive to
perfect everything from the reel forward results in over 16 leader types
for any fish species or
strategy. All featuring perfection loops for easy rigging, so you’ll spend
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from silky and supple to rugged and abrasion resistant—
you’ll have the confidence of not only fooling that fish, but landing it too.
©RPI, Inc. All rights reserved • 5050 S. Yellowstone Hwy • Idaho Falls, Idaho 83402 USA • 800-553-0838 • RIOproducts.com • Made in USA
4
CONTRIBUTORS
Monte Burke
Monte Burke is a staff writer for Forbes. His
personal passion for fly fishing has been welldisplayed in articles for Field & Stream, The Drake,
Garden & Gun, and elsewhere. He is a frequent
contributor to Angling Trade.
Jay Cassell
Because
It’s NEVER
Too Early
To Think
About
Accessories!
Jay Cassell earned a lifetime “Excellence in Craft”
award from the Outdoor Writers Association of
America. Even the most novice fly angler has
experienced Jay’s expertise in the countless articles
and books he has written, edited, and produced.
Michael Gracie
Michael Gracie has a “day job,” consulting for a
number of high-tech, Fortune 500 clients on various
matters. Fortunately, he lets us see his “fish bum”
persona through the popular blog michaelgracie.com.
This is his first foray in Angling Trade.
Bill Marts
Bill Marts is a fly fishing and travel expert who works
for The Fly Shop, based in Redding, California.
In this issue, Bill offers a “been-there-done that”
perspective (his second AT piece) on the keys to
making traveling anglers satisfied.
15353 E. Hinsdale Cir.
Unit F
Centennial, CO 80112
ph 303-690-0477
fax 303-690-0472
[email protected]
www.anglersaccessories.com
WADING STAFF
Safe and Stealth!
Will Rice
Will Rice (the Colorado Will Rice) holds a highly
respectable position in the corporate world, yet,
for some reason, he still publically admits that he’s
a contributing editor for The Drake, and a frequent
writer for Angling Trade.
Wood design provides for quiet, stealth wading
Sound travels 5 times faster in water than air
Unique handle design promotes stability
Retrieves flies from overhead branches
Field tested on the rugged Pit River
Beautiful white ash staff floats
Steve Schweitzer
Steve Schweitzer is a fly industry insider, business
maven, and author of the new Fly Fisher’s Guide
to Rocky Mountain National Park. He’s Angling
Trade’s best source for “hot scoops” on issues that
affect shops. All we can say about Schweitzer is,
“Read… and learn.”
942 Quarry Street, Petaluma, CA 94954
707.763.7575
[email protected]
w w w. p i t r i ve r c o m p a n y.c o m
Dealer/distributor inquiries welcome
EDITOR’S COLUMN
Let’s Get Real… Really
showing up in Costco locations…
about Pro Plan Direct, and all of that,
is that all of this is really a deeper
reflection of the tenuous manufacturer-to-retailer relationship. It’s about
direct sales… more to the point, it’s
about if certain manufacturers are
willing to sell out the specialty retailer
for the sake of profit.
That’s really the gorilla in the room.
So let’s talk about it.
photo by Conway Bowman
We’re pumped up at Angling Trade now
because we’ve recently launched a
revamped website (www.anglingtrade.
com), where we are reporting on issues that affect the fly fishing industry
as they happen, when they happen.
You should check out the website if
you haven’t already. That’s where we
first ran stories on the thefts affecting
fly shops, where we originally hit the
“hair hackle” craze (you’ll see more
on that in this magazine), and we also
broke the whole “Costco” deal there.
I think it’s great to have a vehicle that
allows us to do some investigative
work and run stories in “real time.”
Based on what I’ve seen by way of
feedback, you want that substance.
You got it. We’re on it. We’ll keep
the throttle down.
But there’s also something to be
said for the print forum, where AT
can delve deeper into those topics
(and others), and write features that
serve the interests of the specialty fly
retailer in detail. We have the best
writers in the business bringing that to
you also.
You know… the one thing that strikes
me about the stories we ran on hair
extensions and hackle feathers…
about Sage rods and Simms waders
6
As for the Costco situation… yeah…
Simms waders and Sage rods showed
up at Costco locations (16, by my last
count) for substantially lower prices
than a fly shop offers those products.
And, after they figured out what was
going on, Simms and Sage went out
and repurchased the products, at
retail prices, to protect the sanctity
of the manufacturer-dealer relationships they had cultivated over the
years. By any account, that’s bold
action, and a tough stance in favor
of the independent dealer. I admire
that level of commitment.
What I don’t admire is how other
companies have been allowed to slide,
for years, with no tangible explanation to the retailer for the doubledealing, or the false promises.
Here’s an example: A couple years
ago, an unnamed rod company had
the audacity to ask me to a meeting at
the FFR trade show (back when it was
the AFFTA-sponsored FFR, before
IFTD), and the “schtick” was: “Well,
we don’t have any new products to
show, but what we’re all about now
is our revamped relationship/system
for working with dealers.” And in the
months since, there hasn’t been an
ad in this magazine (targeting dealers), nor a scant press release, talking
about exactly what that company is
doing for dealers. Oh, we’ve received
press releases from them since, about
new product, and film award programs. But what’s in it for you, really?
How many times do I have to stop in
a gas station in Alabama, see the sunglasses sold there, and then get a press
release about how “Company X” is
committed to the specialty fly dealer,
before I feel like calling “bull?”
Actually, that’s not my job...it’s yours.
Say what you want about AFFTA and
IFTD. I’ve seen more good things
from AFFTA and more positive mojo
about IFTD than I have seen from
our trade organization and about the
trade show, than I have in years.
Many of us are angry at the “establishment.” But the establishment isn’t the
enemy. The enemy is all those hangers-on, the self-anointed… all those
blood-sucking leeches who, when all is
said and done, don’t do much for the
industry as a whole. The companies
that are clearly in it for themselves, and
make the dealer a pawn in the process.
Maybe we should all wake up and
smell the coffee. It isn’t about hair salons, or Costco, or even big box stores
and direct sales over the Internet.
It’s about who really cares about fly
shops, and who backs words with action. Any action. Think on that, and
you already know who has your back,
and who doesn’t.
Sell the products from companies
that do the most good for fly fishing
as a whole. Don’t sell the rest. It’s
that simple. at
Kirk Deeter
Editor
SCIENTIFIC ANGLERS OFFERS A FLY LINE FOR
ANY FISH, ANY TIME, ANY PLACE
SA SPEY, MASTERY SERIES, MASTERY TEXTURED SERIES, & SHARKSKIN
www.scientificanglers.com
CURRENTS
Pro Guide Direct
Some say the sun rises and sets on the fly
industry where guides say it does. Now
guides have a way to cash in on their
product expertise and client connections.
Pro Guide direct (proguidedirect.com),
an online retailer of fly fishing and other
gear, offers 15% of a transaction to the
guide who refers it. But not all in the fly
shop world (understandably) are jazzed
up about that. Read the message boards
on Angling Trade and elsewhere, and you’ll
see Pro Guide Direct accused of everything from poaching guides and sales to
being a “virtual big box.” As such, some
manufacturers have shied away from
involvement, while others (namely Orvis)
are firmly behind the concept. To get to
the bottom of things, we spoke with Pro
Guide Direct CEO Fletcher White (a
former guide) and here’s some of what
he had to say:
On the rationale: “We created Pro
Guide Direct as a platform for guides,
outfitters, destination travel companies
and destination shops to compete against
the big box stores. Specifically, we help
manage an inventory, because it’s difficult to tell what demands will be at any
given time.”
On guides as product ambassadors: “We
believe the relationship between the
guide and customer should stay solid.”
On perceptions in the market: “We
started on the East Coast, and as we
expanded, the wave of information got
ahead of us. We’re not an online discount retailer looking to undercut
fly shops.”
On future plans: “We started in fly, and
we’re going (into) conventional gear next.
Then hunting, then snow sports. Any
sport where a guide/expert is important,
we see mutual opportunity.”
Nation’s Best Sports Creates
Specialty Independent Fly
Shop Group
Nation’s Best Sports (NBS), a retail
buying group organization located in
Ft. Worth, Texas, has started forming a
free-standing buying group comprised
of independent retail fly shops in the
United States and Canada.
8
According to NBS, the purpose of this
group will be to organize the independent fly shops into a professionally managed buying cooperative, and to use the
knowledge and strength of the dealers to
create collective buyingpower. This Fly
Shop Group (FSG) will also investigate
creating its own private label brand(s) by
manufacturing product in Asia, Europe,
and Central America, and importing for
distribution through the collective. The
group says it has identified existing vendors for this purpose. (Editor’s note: also
see the AT story on private label branding, written by Jay Cassell, which appears
on page 20 of this magazine.)
Interested parties in search of additional information are encouraged
to contact FSG coordinator John
Pinto at 586-218-4433 or by e-mail at
[email protected].
NBS is a not-for-profit cooperative
dedicated to strengthening the independent retailer in all categories of
sporting goods. For more information
on NBS membership, please contact
Stuart Snow at 800-379-0155 or by
e-mail at [email protected]
Simms Wading into the
Conventional Market
Simms Fishing Products brings
forward a slate of products to consumers in 2012 that are designed for
conventional
anglers.
The “crown
jewels” of
Simms’ conventional line
are the Pro
Dry GORETEX Parka and
the Pro Dry
GORE-TEX
Bib, which,
until now, have been available only to
members of Simms’ pro staff.
These two GORE-TEX products
were worn by a number of anglers
at the 2011 Bassmaster
Classic and were tested
on the tournament trail.
They are the result of
years of on-the-water
testing and product refinement with Simms’
partners at W.L. Gore
& Associates. The two
companies have been
partners on rain wear
and waders for years,
and are excited about
the opportunity
to put the Simms brand in front of
more anglers.
The Simms conventional collection
will also include sportswear, footwear
and layering items. For 2012, the Pro
Dry items are available to consumers
in either red/black or blue/black color
schemes. MSRP for the bibs is $399.95
and for the parka it’s $499.95.
Also from Simms: More on the
Boot Regulations
“Anglers across the country are gearing up for the start of a spring fishing
season that will likely be different
than past seasons – at least where
gear is involved.
From Maine to Alaska, anglers wading into waters in 2011 will have to
contend with regulations and advisories concerning the use of feltbottomed wading boots. Maryland
and Vermont have banned the use of
felt-soled waders and wading boots
starting this year and Alaska is set
to follow suit in 2012. At least three
other states – Oregon, Montana and
Maine – are considering bans on feltsoled boots that have been implicated
in the spread of aquatic nuisance species like Didymo (or “rock snot”).
Simms Fishing Products took the
initiative on this issue in 2009 – volcontinued on next page...
THE
Photo © 2010 Bonnie Harrop
FEATURING A COMPLETELY NEW FRAME AND SPOOL DESIGN
The reels are protected with a Type II grey nickel anodize finish with
silver accents. Each reel is sequentially numbered and engraved with
Rene’s signature, the TroutHunter osprey, and the House of Harrop
icon logo. They come packaged in an embossed leather pouch and
rich cedar box.
THE FINAL BATCH OF 49 REELS ARE AVAILABLE NOW.
CONTACT US TODAY TO SECURE YOURS! WE CAN BE REACHED AT
(877) 634-4343 OR EMAIL US AT [email protected].
Visit hatchoutdoors.com to learn more about the history of the project
and see additional photos. Retail price: $1000
CURRENTS
untarily removing felt-bottomed wading boots from their product line. As an
industry leader in Vibram-soled wading
boots, Simms offers these tips and tactics
for anglers figuring out how best to go
felt-free this year as the ‘rubber meets
the rowed.’”
* ALL RUBBER IS NOT CREATED
EQUAL: Manufacturers have been
making rubber-soled boots for years, but
recent advancements in rubber-making
technology have produced new rubber
compounds designed for maximum grip
in aquatic environments. Simms was the
first fly fishing manufacturer to partner
with Vibram to produce a rubber compound that provides ultimate traction.
* PICK A PATTERN: The lug pattern on the sole of a rubber boot can
greatly affect how much traction a
boot affords an angler. Look for aggressive tread patterns that provide
grip in multiple directions.
* STUD AND CLEAT OPTIONS:
Felt soles provided maximum grip when
they were studded. The same holds
true for rubber boots. Many of today’s
rubber-soled boots are equipped to
handle screw-in studs and cleats. Simms
offers HardBite Studs and Star Cleats, as
well as molded AlumiBite Cleats that are
easily inserted into the sole of the boots.
* WHAT TO DO WITH OLD
BOOTS: Some cobblers are equipped
to resole old wading boots with new
rubber soles. Check www.simmsfishing.
com/site/streamtread.html for a list of
cobblers authorized to resole boots with
Vibram soles. Additionally, old boots
loaded with a few flowers make for nice
centerpieces on tables at Trout Unlimited banquets or in fishing lodges.
* KEEP IT CLEAN: While felt soles
have been implicated in the spread of
aquatic nuisance species, simply switching to rubber-soled boots does not make
the problem go away. Now, more than
ever, anglers are urged to “Inspect, Clean
10
and Dry” all fishing gear – not just wading boots – after each use. Anglers are
encouraged to log on to cleananglingpledge.org for more information, as well
as cleaning and drying tips.
* KNOW THE LAWS: Maryland’s
felt ban goes into effect March 21 of this
year. Vermont’s felt ban begins April 1.
Alaska goes felt-free across the state on
January 1, 2012. New Zealand has been
felt-free for several years. Other states
and provinces are expected to follow.” -Written by Matt Crawford
Fishhound Spreads its Reach
Through Guides
In April, California-based Fishhound
relaunched its website featuring fishing reports from guides, shops and
real-time fishing reports
lodges around the United States. It is
intentionally heavy on fly fishing, with
more than 600 contributors providing
information.
Fishhound has also recently introduced
smart phone apps for its fly fishing reports and this summer - using feedback
from professional bass anglers - is beginning to post bass fishing reports as well.
The bass reporting platform was built
in part using feedback from bass pros,
including Scott Martin and Dion Hibdon. The company says it is beefing up
saltwater reports also.
While much of Fishhound is free, it is
the premium membership portion of
the website that helps generate revenue
for shops and guides. In that respect,
guide participants at the Simms “Ice
Out” event were offered incentives to
provide fishing reports.
Guides who agreed to provide two fishing reports per week through a 90-day
period were given $300.
“We want to ensure when people log
on to Fishhound they get real-time,
on-the-water reports from people who
know their stuff,” said Rick Patri, vice
president of operations for Fishhound.
“These guides at Ice-Out know their
stuff. There’s a huge value in having
them contribute to our site. We recognize that and we’re going to pay them
for that.”
Anglers can log in to Fishhound and
obtain important information they need
on where and when to go, what flies
to use and even get weather and water
conditions. And they have the ability to
customize it to specific waters and spots
they’re interested in.
A Fishhound report gives anglers
information on water flows, temperature and water clarity, plus updated
trip reports on the size and number of
fish caught and what was used to catch
them. Additionally, Fishhound visitors
can access the site’s database of lures,
flies and fish species.
Premium memberships at Fishhound
($9.99 a month) provide much deeper
fishing information including specially
designed apps for phones, exhaustive search capability of fishing spots,
detailed section reports, hatch and fish
migration reports and discounts on
selected gear. See fishound.com for
more information.
Angling Trade is very interested to hear
impressions from guides and shops working with
Fishhound. Is it helping your business? Please
e-mail your feedback to [email protected].
FishExplorer.com has expanded
to include Texas and Florida
(freshwater).
FishExplorer.com, an interactive
website featuring news, reports, audio,
maps, blogs, and photos on various fishing topics (including
fly fishing), has expanded its regional
footprint from
Colorado to now
include Texas and
Florida (freshwater).
Books & DVDs
Affordable impulse items for
anglers of all types & budgets
Do check out fishexplorer.com if you
are in those states, and stay tuned for
updates from Angling Trade as FishExplorer expands further.
Products Worth
Checking Out
Howler Brothers Clothing
Howler founders Chase Heard and
Andy Stepanian spent their adolescent
summers haunting the waters and fish
of Florida and Virginia and riding the
ripples those states call waves. Both
Heard and Stepanian now live in Texas
ANGLER’S BOOK SUPPLY 800.260.3869
Featuring the very best books, dvds,
calendars & gifts that fly-fishing has to offer.
www.anglersbooksupply.com
where they raise families, work hard,
make music together, chase fish with fly
rods and make runs to the nearest coast
or river when the opportunity arises.
Their vision for Howler – and the
name Howler Brothers – was inspired
by a sound they each heard on surf
trips to Costa Rica: the call of the
loudest animal in North America, the
Howler Monkey.
With this emotional connection as a
base line, Heard and Stepanian formed
AT Managing Editor
Tim Romano’s take:
“Unpretentious, super-high-quality
clothing that doesn’t automatically
scream “angler.” Their clothing could
be worn right off the flats boat or river
straight to dinner. The Aransas is one
of the better looking and innovative
button-down shirts I’ve thrown on in a
while. There’s a built-in sunglass microfiber pocket, retro stitching and the
poly-cotton blend is perfect for fast drying. The 100% Polyester Loggerhead
Longsleeve is a bit more technical with
thumb holes at the cuffs, a side stash
pocket with built-in microfiber glass
cleaner, and UPF 45 for all-day sun
protection.” Check out more information at www.howlerbros.com
Did You Know… That Angling Trade
has beefed up its website to include more fieldtested product skinny, as well as breaking news
that impacts the fly industry? So, while we love
the fact that you’re reading our print edition, you
don’t have to wait every three months to get news
that’s relevant and useful for your work…
Revo Fixes Its Gaze on the
Fishing Market
Revo, a prominent name in the sunglasses business, recently announced
the launch of its “Water” lens. The
company claims that the lens offers
industry-unique high-contrast polarized lens technology that’s optimized
for the color profiles of open water.
continued on next page...
11
“If you’ve heard it, you know how
loud and startling the sound can be.
But, after hearing it a few times, the
sound becomes a part of the collective
feeling of being in Central America
and serves as a constant reminder that
you’re in a good place, doing something you love,” said Heard.
Howler Brothers to craft limited-run,
high-quality clothing and goods that
draw inspiration from the style and
tradition of surfing and coastal sports.
They set out to make gear that works in
the water, on the boat, and around the
fire pit when the stories are told. Clothes
you might wear when you’re hearing
Howler Monkeys from your hut after a
day well spent. Or clothes to wear when
you’re wishing you were.
CURRENTS
The ambient lighting conditions in
ocean-water environments have an
overabundance of blue and green light
due to the light reflected off water.
While
some
lenses address this
problem
by blocking this entire color range
(resulting in color distortion and the inability to accurately recognize colors),
the Revo Water lens filters only specific
wavelengths, resulting in accurate color
that eliminates the blue haze without
color distortion. The result is clarity,
accuracy and overall visual enhancement – perfect for applications including fishing, boating, travel, or spending
time in water environments.
We have field tested the Revo
“Guide” model glasses (MSRP
$179) in both freshwater and saltwater environments, in cloudy and
bright conditions, and were impressed by their lightness, and fit, as
well as optical clarity that is in line
with the company’s claims.
Writing, Editing, Consulting
Ever wonder why your carefully typed
press releases don’t make it into print?
Try turning your press release into a
News Release by using a professional
public relations person with 50+ years
of fly-fishing savvy, an understanding of angling products and the catch
words that make people buy them;
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knowledge of what publications are
looking for.
All inquiries in strict confidence.
Bennett J. Mintz PR/Adv.
818.718.8566 phone
818.648.6168 mobile
[email protected]
12
Korkers Files for Patent Update
Korkers Products has filed a patent
application with the United States
Patent and Trademark Office for
an updated version of the outdoor
footwear company’s Interchangeable
Outsole System.
Korkers has designed a new version
of its unique OmniTraxInterchangeable Outsole System. This new
technology dramatically improves the
use of the system, which provides a
variety of traction options for shoes,
so no outdoors spot is out of reach,
while allowing the product to become
lighter weight and lower profile.
“This new, updated technology allows
Korkers to expand into markets beyond those that we are currently serving in fly fishing and winter boots,”
said Sean Beers, CEO of Korkers.
“Adaptable traction technology is in
its infancy and opportunities abound.
This latest version of the OmniTrax
Interchangeable Outsole System will
help Korkers establish itself in the
broader footwear market as a leader
in innovation and technology.”
PEAK Fishing Reports
Record Quarter
Fly Tying product manufacturer
PEAK Fishing announced that its first
quarter 2011 sales were the top quarter in the company’s history. This is
a continuation of a steady increase in
sales PEAK has experienced since the
beginning of 2009. Following record
sales in 2009 and then again in 2010,
PEAK is positioned for a third consecutive successful year after the completion of the first quarter of 2011.
“We feel very fortunate to have seen
the increase in success we’ve experienced over the past 27 months”
said PEAK owner and President
Allen Schultz. “At the same time we
don’t confuse good fortune with luck.
We’ve worked very hard to bring a
reliable and well-thought-out product
to the market at what we feel is a very
fair price, making PEAK the best
value in the fly tying market. A great
deal of our success can be traced back
to the support and knowledge of our
professional dealer network as well.
We’ve come out with several very
convenient and affordable fly tying
packages, a top quality non-rotary
vise and this year we’re very excited
about the reception our LED tying
light has received. Besides our fly
tying vises and accessories we’re also
seeing great interest in our bamboo
rod planing forms. Rod making is a
market we will be exploring further
as we work on new introductions for
later in 2011.”
For more information about PEAK
Fishing, PEAK’s contract fabrication
and manufacturing capabilities, or
becoming a dealer visit the company’s
website at peakfishing.com, contact
them by phone at 970-622-9601, or
e-mail them at [email protected].
PEOPLE NEWS
Greg Thomas Named Editor of
Fly Rod & Reel
Angling Trade contributing editor Greg
Thomas has assumed the full-time
editor’s role at Fly Rod & Reel. He
has been that magazine’s managing
editor since 2009.
CURRENTS
Thomas assumes his new position
after the departure of former associate publisher Joe Healy in December.
Since that time, Thomas and former editor-in-chief Jim Butler have
co-produced Fly Rod & Reel’s Spring
issue and a contemporary newsstand
annual publication, titled Angling
Adventures.
They will
continue as
a team, with
Butler handling specifics from the
magazine’s
headquarters, in
Camden, Maine, and Thomas overseeing day-to-day editorial issues from
Missoula, Montana.
Prior to joining Fly Rod & Reel,
Thomas was the managing editor of
Big Sky Journal. In addition, he was the
founder and publisher of Tight Lines,
an annual publication he sold in 2007.
Thomas also operates Angler’s Tonic,
an edgy fly fishing-specific website. He
plans to enhance Fly Rod & Reel’s digital efforts, adding additional subjectspecific digizines to the media mix,
along with e-books and timely reports
from the field.
Miscellaneous
Midcurrent Launches
Redesigned Site
If you haven’t checked out the newly
revamped and redesigned
Midcurrent.com, do so. The project
was many months in development,
and the end results are impressive.
For one, the sheer girth of the site
is more than formidable. More
than 700 articles, 150 art and photo
galleries, and 6,500 news stories
14
(all related to fly fishing) now live at
Midcurrent.com. Publisher Marshall
Cutchin also added: “What’s new on
the site? Much larger art and photography galleries, expanded video
collections, more features, excerpts
and interviews, and a brand new
design that we hope will make your
visit more worthwhile.”
Angling Trade editor Kirk Deeter (also
an editor-at-large with Field & Stream)
is penning a weekly “Fly Fishing
Jazz” column on improvizing fly fishing approaches... one of many edgy
columns on the site. Do please sit in
when you can.
Redington Selling in
Yellowstone Stores
Far Bank Enterprises entity Redington
recently announced a partnership with
a selection of Yellowstone National
Park retail stores. Four stores throughout Yellowstone National Park will sell
Redington’s active outdoor apparel to
park visitors. They are: Yellowstone
Adventures, Grant Village General,
Old Faithful General, and Fishing
Bridge. Each of these four stores will
have a mix of men’s and women’s apparel throughout the summer season.
“We are very excited to have such a valued retail partner in a place that fits perfectly with what Redington is all about,”
explained Jennifer Gish, Redington Marketing Manager. “Redington is a brand
that loves every part of the outdoors and
Yellowstone offers just that. Campers,
hikers, and fisherman alike will appreciate what we have to offer. It’s a wonderful
opportunity to get our brand in front of
new customers, especially those with an
active outdoor lifestyle.”
“Our partnership with Redington is
another exciting example of our commitment to offering high quality, brand
name products to our guests,” said Karen Tryman, Assistant General Manager
of Yellowstone General Stores. “We
appreciate Redington’s commitment to
outdoor gear and their support of the
Yellowstone Park Foundation through
the Ranger Jacket program.”
Yellowstone Adventures is the first
store to open in the park for the season and the remainder of the stores
will open once the snow melts.
Reminder: Angling Trade to
Manage New Product Showcase
at IFTD
Angling Trade and the American Fly
Fishing Trade Association, organizer of the International Fly Tackle
Dealer trade show planned for New
Orleans August 18-20, 2011, recently announced award categories
for the “New Product Showcase”
section of IFTD.
They are:
• Overall Best of Show
• Best Wading Gear
• Best Eyewear
• Best Chest Pack/Vest
• Best Outerwear
• Best Youth-Specific Product
• Best Women’s-Specific Product
• Best Eco-Friendly Product
• Best Rods – Freshwater & Saltwater
• Best Reels – Freshwater & Saltwater
• Best Personal Watercraft
•B
est Fly Lines – Freshwater
& Saltwater
• Best Fly Boxes/Storage System
•B
est Fly Tying/
Materials/Equipment
•B
est New Fly Pattern – Freshwater
& Saltwater
•B
est Accessory
(Dressings, Tools, etc.)
• Best General Apparel
That makes 20 categories, plus a
“Best of Show Award.” We are considering other categories (books, gifts)
and will announce how we intend to
handle those on anglingtrade.com in
the near future.
The New Product Showcase will
occupy a prominent position on the
exhibit floor at IFTD. Awards will be
voted on by attending retailers and
media. Only products from ITFD exhibitors are eligible for consideration.
Awards will be presented on Friday
evening, before the final day of the
show (so that attendees can see winners on the exhibit floor on Saturday).
“Sportsmen conservationists were
mad about some of the provisions
included in HR 1, the first draft of
proposed spending cuts,” Moyer
said. “Even though it’s spring and the
outdoors are calling, we put down our
rods and firearms and took up our
phones and computer keyboards to
talk to our members of Congress, and
our voices were heard.”
Angling Trade is also planning a full array of New Product Showcase reporting at anglingtrade.com, including
webcast videos, and written reports.
HR 1 would have devastated stalwart
programs such as the Land and Water
Conservation Fund, the North American Wetlands Conservation Act, State
Wildlife Grants, and Farm Bill conservation programs. Its ill-conceived
policy riders would have undercut the
protections of the Clean Water Act,
overturned landmark salmon restoration programs on the San Joaquin and
Klamath Rivers, and curtailed OHV
management on federal lands.
Do stay tuned to anglingtrade.com in
the coming weeks for more guidelines
and information. Manufacturers can
submit any inquiries and information to
[email protected], starting now.
Environment News
Congress Drops the Ax, But Federal Bill Less Damaging Than It
Could Have Been
Sportsmen’s voices heard in Congress;
cutting conservation programs would
have been bad policy
Congress apparently heard the outcry
over deep proposed
cuts to vital conservation programs
from Trout Unlimited and other
sportsmen’s conservation groups, as the fiscal year 2011
spending bill approved this spring
included much-needed funding for
important conservation work.
Sportsmen depend on these programs to help sustain the fish and
wildlife bounty that yields huge
economic benefits to the nation each
year. According to the U.S. Fish and
Wildlife Service, sportsmen generate
$22 billion in hunting expenditures
and $42 billion in fishing expenditures annually.
“We appreciate deeply the tremendous efforts invested by many members of Congress and the Obama
Administration to soften the blows
administered by HR 1’s conservation
provisions,” said Moyer. “And we
Final FY2011 spending for some priority conservation programs:
• Land and Water Conservation Fund
– $301 million, a 33 percent reduction
from 2010, but an increase of $244
million from what was proposed in
H.R. 1.
• North American Wetlands Conservation Fund – $37.5 million, down
21 percent from 2010 but slated for
elimination in HR 1.
• State and Tribal Wildlife Grants
program – $62 million, a reduction of
31 percent from 2010, but was set to
be zeroed out by HR 1.
• Farm Bill Wetlands Reserve Program – down $119 million.
• Farm Bill Environmental Quality
Incentives Program – down $80 million from 2010.
• Riders proposed to undercut the
Clean Water Act, salmon restoration
programs, and OHV management on
federal lands, were removed.
Cheeky Fly Fishing Debuts Reels
In May, Cheeky Fly Fishing, a Bostonbased fly reel manufacturer, launched a
new line of fly fishing reels. Machined
in the U.S.A. and incorporating in-
novative proprietary technology, the
company says its reels are “designed
specifically for progressive fly fishermen
pushing the limits of the sport.”
15
That said, the spending bill does, indeed, scale back conservation funding
from previous levels, and these cuts
will be felt on the ground, said Steve
Moyer, vice president of government
affairs for Trout Unlimited.
While fiscal year 2011 appropriations
levels are superior to those of HR
1, they still represent levels that are
far below last year’s levels for some
programs, such as the State Wildlife
Grants program (see the brief summary below). Thankfully, Moyer said,
most of the riders, including all of the
Clean Water Act and salmon restoration program riders, were removed in
the bill approved by Congress.
salute all sportsmen and women who
responded to HR 1. But our work is
not yet done. Upcoming Congressional debates on raising the debt
ceiling and FY 2012 appropriations
bills will have more threats to our
hunting and fishing heritage, and we
will be ready.”
CURRENTS
Cheeky comments: “Progressive fly
fishermen are chasing bigger, faster,
more obscure species around the
world and in their backyards alike.
Cheeky Fly Fishing has identified
and brought to market exactly what
progressive fly fishermen demand: fly
(AFFTA). The collaborative efforts
of AFFTA and IF4 will see the
festival included as one of the many
exciting features at the International
Fly Tackle Dealer show, scheduled
to run from the 18th – 20th of August this year.
IF4 is a co-production of Fly Max
Films and Bird Marketing Group. Its
purpose is to act as a catalyst in efforts
to promote the sport of fly-fishing
to new audiences as well as generate
excitement among the sports core
consumer base.
“We can’t wait to introduce IF4 to
our industry friends down in New
Orleans,” says Bird Marketing Group
President Chris Bird, “We arrived at
For more information about the International Fly Tackle Dealer show please
visit: www.theflyfishingexpo.com.
Check This Out…
reels for every situation, from bluegill
to shark, that are incredibly strong,
lightweight and durable, feature a
super-large arbor design, hold a ton
of line and are maintenance free. To
ensure the highest quality craftsmanship, all Cheeky Fly Reels are made in
the U.S.A.
Fully machined from 6061-T6 aerospace-grade aluminum and titanium
and anodized to endure the gnarliest
elements fly fishermen face, Cheeky
Fly Reels are built to last a lifetime –
guaranteed. The reels incorporate
proprietary features such as Cheeky
Fly Fishing’s KarbonEVO sealed
synthetic disc drag system, TiLock
Mating technology, B2 Channel and
MAX arbor. The reel’s industry leading strength-to-weight ratio and revolutionary features make it the ultimate
weapon for progressive fly fishermen.”
For more information on Cheeky Fly
Reels, please visit www.cheekyflyfishing.com/reels.
Fly Fishing Film Festival Screening Planned for IFTD
The International Fly Fishing Film
Festival (IF4) recently announced a
special trade screening in New Orleans in association with the American Fly Fishing Trade Association
16
last year’s IFTD show in Denver with
a three-date festival concept and after
several meetings left with a multimarket product. Without the platform
AFFTA provides through IFTD the
festival would be nothing more than
small market brand extension for Fly
Fusion magazine and Fly Max Films.
Because of the opportunities provided
at last year’s show in Denver IF4 is
now the largest event of its kind in
Canada with independent screening
expansion programs in place for both
the United States and Europe. IF4 is
a very small example of why IFTD is
so important and we look forward to
attending for years to come.”
“We are honored to have the IF4 film
tour represented at the 2011 International Fly Tackle Dealer show in
New Orleans,” says AFFTA President
Randi Swisher, “During the ‘Party on
the Pond’ event on Friday night, the
IF4 film crew will be highlighting some
action packed fly-fishing scenes from
their film tour. In addition, AFFTA
will be announcing the new show location for 2012 and will also be providing live music and beer at the party. It
is great to have industry support from
IF4 at the fly fishing trade show and
also be able to promote the sport of fly
fishing at our fun evening event.”
From Kirk Werner, author of the Olive
the Woolly Bugger children’s book
series and Sarah Lonigro, Executive Assistant
at the Wild Salmon Center:
We’ve recently launched a new website project,
Take Kids Fly Fishing. At this point it is
simply a service we felt was terribly necessary
-- a hub of information to help parents to
get their kids
outfitted and
started off in
fly fishing. We
just launched
officially yesterday, and feel that it’s going to grow quickly
with support from everyone -- the industry
and participants.
http://www.takekidsflyfishing.com/
Croakies Intros Cochran Belts
Croakies recently announced the
addition of the Vaughn Cochran
Belt Collection to its line of belts.
Croakies has teamed up with noted
artist and fly fisherman Vaughn
Cochran
to create
the Vaughn
Cochran
Collection
as a new
addition to the wide array of Croakies
belt offerings. The new Black Fly Belt
with the composite Travel Buckle is
sure to be a hit as it can be used in
water, is completely adjustable and
can be worn through security lines at
the airport.
For many years Vaughn was a well
known and well respected fly-fishing
guide in the Florida Keys. He found
his artistic inspiration observing
nature while guiding his clients to
meet the challenges of saltwater
fly-fishing. This is where the iconic
“’Black Fly” was born. Cochran has
been an integral part of the Tropical
fly fishing world since the 1970’s. He
has worked as a guide, fishing lodge
manager, a travel consultant, and a
retailer. He currently owns, manages
or endorses Blackfly Outfitter, Blackfly
Bonefish Club, Bonefish Bimini at the
Bimini Big Game Club, and Vaughn
Cochran’s Fine Art Gallery. Cochran
is a proud member of the Croakies
team and lives in Jacksonville, Florida
where he works with his wife Jean,
fishes and paints.
be able to cast a sight fly 50 feet with
a 7.5’ leader. Leaders and sight flies
will be provided.
This contest was created by Hardy
USA and CFFCM to celebrate the
100th Anniversary of the introduction of the Hardy C.C. de France
Fly Rod by Hardy Bros. Ltd. The
overall point champion will receive
a Commemorative 100th anniversary C.C. de France hand-crafted by
Hardy master rod makers, Tom Moran and Callum Gladstone. Second
and third place finishers will receive
a Hardy classic fly reel. The winning
caster’s name will be engraved on
the Tiffany-designed “Hardy Bros.
Cup” that will remain on display in
the Catskill Fly Fishing Museum.
An award ceremony will take place
at 6:30PM on Saturday, August 6, at
a complimentary barbeque hosted
by Hardy at the Catskill Fly Fishing
Center and Museum.
This annual event has been designed
to share in the pleasures of casting
bamboo fly rods. No fee or advanced
registration required.
A casting field will be laid out at upcoming CFFCM events:
May 21 & 22, Woodstick- a field show
devoted to the classic fly fishing tackle
and accessories by today’s traditional
craftsmen.
May 28 & 29 for the CFFCM Annual
Dinner Weekend.
For complete details on scoring and
handicaps, please visit www.cffcm.net. at
Hardy Creates Bamboo Casting
Competition
17
On August 6, 2011 Hardy USA and
The Catskill Fly Fishing Center and
Museum (CFFCM) will hold the
first annual Hardy Bros. Cup casting competition, at the 29th Summerfest and Anglers Market at the
CFFCM. This
annual casting
event will be open
to all individuals and the only
requirement is to
use a bamboo fly
rod 9’ in length or
smaller. This casting contest will
be based on two distance casts and
one accuracy cast. Handicaps will be
applicable to rods under 8’ in length
and a tie breaker will be determined
by the age of the rod. Casters should
CURRENTS
Travel
Be Your Client’s Best Advocate...
Written by Bill Marts, The Fly Shop, Travel Department
This can only be done (to positive mutual effect) by asking key
questions and listening to the answers. Typically, a client will
first make contact and ask questions through a phone call or
E-mail. Listen or read closely to get as much out of this initial
contact as possible, then start asking questions. Try to get the
name of the person as soon as possible, and use it a couple of
times during your conversation.
Then an agent needs to know:
1. How many people are planning to go with the caller
(inquirer), and how many are anglers vs. non-anglers. If
non-anglers are involved, an agent needs to know what their
expectations are of the trip. Do they need activities every day,
like horseback riding, hiking, birding, kayaking, touring Mayan ruins, etc.? Once that is known, the number of possibilities for the angler has been automatically fine-tuned.
It is imperative that a fishing-travel business be its client’s best
advocate in finding the ideal destination at which they spend
their hard-earned vacation time and money. A fly shop in
the travel business has to do its best (110% effort) to find that
perfect place. Yes, a shop is being paid a commission by the
lodges for sending guests to them, but its fiduciary responsibilities truly are, or should be, dedicated to its clients. Lodges
depend upon repeat business to keep their doors open each
season - if they are sent “unqualified” guests, they will not be
happy. Worse, the guest will not be happy, and will most likely
bad-mouth the lodge (and probably the booking agent, as
well) to others, resulting in a disaster for all concerned. So, it
is always in the best interest of the agent to know what his/
her client is looking for. What is the simplest way to do this?
Ask questions, and listen to the answers. Make sure your conversation is as black and white as it can be. No gray areas.
A booking agent must:
1. Narrow down destination possibilities.
2. Understand exactly what it is the client is looking for.
3. Peg down the desired price range.
4. Suggest an appropriate outfitter/lodge.
5. Remember that every time an agent makes a reservation,
his or her reputation is on the line with both the client and
the lodge. This is a reputation built upon mutual trust that
keeps the long-time agents around and thriving, especially in
economic times such as we currently find ourselves.
18
2. For anglers, there are several considerations that must be
addressed: What kind of fish are they after, their level of
fishing experience (if beginners, they may need guides with
teaching experience and patience), are they fly fishers or gear
fishers (just because you are a fly shop doesn’t mean that every
call you receive will be from fly fishermen), and when are they
available to travel? This final bit of information is critical if
specific fish species are targeted. You get the idea. The more
an agent can find out about his client and what he/she wants
out of a fishing trip, the better he will be able to pinpoint the
best time and place for them.
3. What price range are they considering? Knowledge of
price specials and constant communication with destinations helps greatly with this part of the equation. When
checking lodge availability for a client, always ask about any
special pricing going on. This never used to be a factor, but
in this economy it is, and lodges are constantly trying to find
the perfect “special” to entice anglers to their place. This is
important these days.
4. Find what a client is looking for, specifically, in a lodge.
Some may tell you that gourmet meals are just as important
as the fishing, while others will eat corn dogs from a wading
staff as long as they can fish long and hard, and have shots at
lots of fish. To some, a freshwater swimming pool is mandatory, for others a rinse with a hose is satisfactory. An agent
needs to know who is asking for what, and what the real
expectations are.
I think it should be clear what I’m getting at here. Every reservation is not just a sale for the successful agent/fly shop; it is,
more importantly, the client’s vacation/free time. If it is done
right, and the client gets what they ask for and experiences
meet or exceed the special plan they have in mind... then the
client will go out of their way to call the same agent back in
the future, because he/she trusts them. The key word is trust.
And the key “agent” for trust is the fly shop. at
No inner tubes
No crowds
Just you, the trout, and a Parachute Adams
Make sure you have a Superfine Touch rod,
the only fly rod optimized for short, precise casts.
orvis.com/superfine
Download a free small stream trout podcast at orvis.com/podcast (June 9, 2009 episode)
Scan. Explore.
Find your
Superfine rod.
feature
The Private Label Factor...
As a way to increase profits, some fly shops
are now selling their own proprietary gear.
Others are dwelling on service. Still others
are branching out into areas such as guide
services and fly fishing schools. The question
is, what will work for you?
Written by Jay Cassell
20
It’s no secret that times have been
tough for fly fishing shops. In fact, a
seminar conducted by Patagonia four
years ago predicted that almost 20
percent of the nation’s shops would
go out of business within five years.
Their prediction hit the mark almost
exactly. Of the 600 that remain,
some are in trouble; others, however,
are thriving. How do they do it?
21
feature
I recently spoke with Mike
Michalak, owner of The Fly Shop
in Redding, California. The Fly
Shop is one of the largest privately
owned shops in the country,
regularly shipping out 335,000
catalogs per year. Michalak
estimates he has an active client
base of 90,000 customers.
“The playing field has changed
dramatically in the past few years,”
Michalak told me. “Nowadays,
I’m seeing competition not just
from big box stores and catalog
companies, but from online gear
sellers as well.
And it’s tough;
everything else
being equal, are
you going to buy a
$400 reel from me
and pay sales tax,
or are you going
to buy a $400 reel
online and pay no
sales tax? I think
we all know the
answer to that
question!”
To compete,
Michalak not
only stresses personalized service
at his shop, but has branched out
into a number of different areas,
one of which is selling his own
“Signature” brands of rods, reels,
waders, lines, hooks, and clothing.
“Nationwide, I believe there are
only two other shops that are doing
what I’m doing,” said Michalak.
One is Leland in San Francisco, the
other is Dan Bailey’s in Livingston,
Montana. (Bailey’s sells wholesale
as well as retail, different from what
Michalak is doing. And, for the
record, Leland Outfitters refused to
be interviewed for this story, asking
this writer to check back in a year,
22
once they had their program
fully underway.)
Michalak explained that all of
his gear is produced in Asia.
“They build everything to our
specifications,” he said, stating
his gear has to meet his standards
or he won’t sell it. “The research
that goes into these things is huge,
because the consequences are even
greater. It takes a long time to
develop a reputation; it doesn’t take
very long to destroy one.”
Having used some of The Fly
Shops’s gear, including their
Signature Series breathable
stocking-foot chest waders, 9-foot
four-piece weight-6 graphite fly
rod (comes with an extra tip and
case) and L2a fly reel, I can attest
to their good quality. Frankly,
it’s difficult to tell the difference
between the action of a Fly Shop
rod and a similar, pricier rod made
by a name-brand competitor. The
difference, of course, is in the
price, with a Fly Shop Signature
rod and reel combo retailing for a
reasonable $329.
Michalak explained that, by
eliminating the “middle-man” (in
this case, the manufacturer… as
opposed to certain manufacturers
who are doing similar by selling
direct via the Internet, minus the
fly shop) he’s able to pass savings
on to his customers. “I wouldn’t
recommend this to most fly shops,
however,” he cautioned. “Unless
there is enough volume to justify
it, it doesn’t work. The fly shops
that are having to close their doors,
part of their problem is that they’re
just overwhelmed with inventory,
inventory that hasn’t been paid for.
“This was a commitment that I just
felt was necessary,” he concluded.
“To get into
the hook
business, for
example, I had
to buy in the
neighborhood
of 14 million
hooks.
“You have
to buy huge
amounts just
to make it cost
effective,” he
said. “I mean,
I have a huge
inventory right
now, but I’ve invested in staple
items, things that are not going to
get outdated quickly.
“Take waders… there is no new
breathable technology on the
horizon that’s going to happen
before my inventory of breathable
waders is exhausted. And our fly
rods. You know, we have really,
really great fly rods, and they’re
every bit as good as rods with known
brand names that cost several times
what’s on my price tag.”
And once a brand is established, the
volume continues to grow. “Okay,
so we got the rods established.
Customers knew what they were
getting, Then we came out with
reels. We sold 1,200 of them in
the first year. That’s huge!”
their sales staff to push them
obviously takes away from the
traditional brands.
Michalak was quick to point out
that he doesn’t consider himself
to be competing against the name
brands; all he is doing is creating
a niche for his own gear. “We
certainly don’t sell down,” he said.
‘Well, here, look, you’re going to
buy a $400 rod, and why don’t
you buy this $125 rod instead?’
We’re not about that. If I did
things like that, I wouldn’t have
been in business for 33 years.”
“Our strategy has always been
to source the finest components,
develop the highest performance
materials we can get, and cut no
corners to build the best rods we
know how to build. The price
is developed based on market
penetration, competitors’ prices
and comparable products for
target prices. The bottom line
is providing the angler with
a product he can depend on,
succeed with, and still come back
with the rod in the same number
of pieces he started with.
On the surface, however, one
might construe proprietary labels
as infringing on name brand
territory. I asked Bruce Holt,
director of communications for
G.Loomis, what his take on the
matter was.
“We have wonderful
relationships with hundreds of
dealers across the country and
around the world, but they need
to make a living too. In the end
it’s the consumer who makes the
choice, and the dealer who can
affect their opinion. Proving a
product that does everything you
say it will is what truly makes the
difference. That’s what has made
G.Loomis so successful.”
Holt went on to say that every rod
with the G.Loomis logo on it is
made in Woodland, Washington,
“something we are all very proud
of and something our customers
appreciate, right along with the
incredible performance and
edge of the envelope product
development on which we’ve built
our reputation.”
“This is a curious situation,” he
said. “With the access to Chinese
manufacturing, there are a lot
of shops sourcing private label
products now. Not just shops,
actually, but individuals as well.
Anyone who has the financial
wherewithal to source these
products can do so.
23
“It’s a difficult balance for a
number of companies (such as
G.Loomis),” he continued. “Do
you lower prices, source your
own imported product, or cut
corners on components and
accessories for these products?
It has to affect their sales. It has
an impact on ours. One problem
that is often overlooked is the
relationships between these
shops importing their branded
product, because they certainly
need to recover their investment
and I’m sure intend to make a
profit, so putting them in key
store locations and instructing
feature
K.C. Walsh, president of
Simms Fishing Products, also
acknowledged that fly shops
need to make a living. But, when
some shops are selling gear that
competes with his company’s
products, it does change the
relationship somewhat.
“Cabela’s did a long time ago
what Mike (Michalak) and others
are doing now,” Walsh said. “It’s
vertical merchandising of product
direct from the manufacturer to the
retail consumer. And, obviously,
it allows them to knock out the
wholesale margin, and they also
knock out the sales and distribution
commissions required to distribute
product. They knock that out, so
for sure it changes the nature of
our relationship with those retailers
who are now competing with us.
At this point, that’s Cabela’s, Bass
Pro, LL Bean, and The Fly Shop.
We would categorize The Fly Shop
with those other retailers who
are either in the big box category
or are direct-consumer retailers.
Is there going to be retribution?
Certainly not. I greatly value
my relationships with all those
retailers, but the relationship
is different than it is with an
independent specialty shop that’s
supporting our brand.
“I think the most important thing
is that the market environment
right now is very dynamic,”
Walsh continued. “Most of our
competitors are selling direct to
consumers and I kind of get the
logic on why a larger retailer would
want to sell manufacturer direct
for fly rods or waders or fleece
garments, because the minimums
on many of these products
coming out of Asia have dropped
significantly over the last five years.
It’s now possible to buy very low
24
quantities of particular fly rods
and hard goods coming out of
Asia. However, with that said, from
our experience in the last year
and a half, the better factories are
actually increasing their minimums
and extending their lead times
and becoming much more difficult
for small customers to work with.
So I would say that the jacket
factory that we work with on
GORE-TEX garments would be
completely out of reach of any of
our independent fly shops. Most
of them are willing to work with
the large direct-retail customers
that we have, including Cabela’s
and Bass Pro. On the other hand,
what we see is lower quality
factories in Asia dropping their
minimums, offering terms, doing a
lot to become flexible to work with
smaller customers. From Simms’
standpoint, we don’t see a viable
threat when it comes to quality and
the performance of the garments
that we make.
“The thing that I guess is most
challenging for us – the thing we
watch with all of our competition
– is that we really spend a lot of
money on design and development.
The challenge is when people copy
our products and try to make their
products look like our products.
And that’s something that’s not
acceptable.”
To Walsh, Simms has always
been a market leader in terms of
quality and innovation. That’s
what has helped build Simms’ solid
reputation, and that’s what will
enable it to remain strong.
“We’re known for high quality and
innovative products, and that’s
what we’ll continue to do,” he
concluded. “We think that there’s
a strong market out there among
fly anglers for top-quality, durable
products. And we know for sure
that we make the most durable,
most breathable wader on the
market. And we’re going to keep
doing that, whether it’s boots or
wading jackets or wind-stopper
garments or fleece or Merino base
layers. Our job is to create the best
possible products in each category,
and then to support our specialty
accounts as much as possible to
help them sell through.”
Michalak acknowledged that
marketing has a lot to do with how
brands sell. And that is an area
where it’s difficult to compete with
the big names in the field. “If I can
get customers that think about The
Fly Shop quality, and say ‘Hey, if
they’re putting their name on it, it’s
got to be pretty good,’ then that’s
great. The problem is that because
I don’t advertise in magazines and
because we don’t spend a jillion
dollars on all of the blog sites, the
(Fly Fishing) Underground and all
that, the only promotion that we
get on our product is internal.”
It’s also about giving the consumer
a good deal. “We sell a lot of Fly
Shop leaders,” he went on. “And
this is a situation where, yes, it has
impacted the sales of some of the
competitive name-brand products.
But the fact is that our margins
are better, and our customers get a
much better deal.”
Glenn Blackwood, owner of the
Great Lakes Fly Fishing Company
near the Grand and Muskegon
Rivers in Rockford, Michigan,
admitted that his shop doesn’t do
a volume that’s large enough for
him to go the proprietary route.
Blackwood’s 2,500-square-foot
store is packed with name-brand
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gear, including Sage, Thomas &
Thomas, Scott, R.L. Winston,
Redington, and Temple Fork
Outfitters rods, and Abel, Bauer,
Hardy, Scientific Anglers, Gavlan,
and Ross reels.
“If a smaller shop like mine could
band together in a buying group to
do some of this and gain economy
of scale, it could be viable, but
without that I would say it will
be the larger shops that can take
advantage of the numbers and have
the capability to invest not only
the dollars but the time to make an
opportunity like this work,” he said.
Blackwood’s store is in a part of
the country that’s been particularly
hard hit by the recession. “Business
has been down the last few years,”
he stated. “It’s a combination of
many factors. First is the Michigan
economy. We still have a sluggish
manufacturing base here in
Michigan. In our county alone, we
have lost not only blue-collar jobs
but white collar as well. One office
furniture manufacturer at one time
employed over 12,000 workers. They
are now down to less than 2,000.
“We have lost a large number of
customers that have relocated to
find work. When Delphi closed a
factory here in western Michigan,
I know of 50-plus customers that
relocated. Place an annual dollar
spent value on these customers at
$300 per customer, and gross sales
fall $15,000 annually.”
Blackwood also felt that we’ve lost
a generation of anglers, people
between 35 and 55. People older
than that generally have all the gear
they need. “The generation below
that is my age group – I’m 48 –
and they are just upside down on
26
homes, credit cards, lost their jobs,
or are afraid to leave the office and
take time off. They’re fishing less.”
And that, of course, translates into
fewer sales.
So how does Blackwood keep
in business? “Service, service,
service,” he said. “Plus, knowledge
and education. I know they are
all buzzwords, but they do mean
something in the long run. I handwrite thank-you cards. I personally
call clients with new products.
Personal relationship selling is what
seems to work best for us. We have
also diversified into sporting books,
new and used, as well as used
equipment. Finding these niches
has really helped.”
David Leinweber, owner and
president of the Angler’s Covey in
Colorado Springs, Colorado, also
stressed the importance of service.
“Customer loyalty is key,” he said.
“If customers do not find value
in doing business with us, then we
need to close our doors and go sell
burritos. We are constantly looking
for ways to provide value to our
customers. This is in every aspect
of how we do business. The better
we know what our customers are
looking for, the more profitable we
will become.”
Leinweber admitted, though, that
“Just offering better service is not
enough these days.
“Fly shops need to find more ways
to compete in the marketplace,”
he continued. With big boxes and
the Internet crowding us out, we
have to find value items or risk
losing our customers.” One thing
Leinweber is trying is selling his
own branded rod. “We partnered
with another fly shop and sell just
one rod, one size, that we can
promote for $100. We’ve sold it for
over six years now.
“The advantages of doing this are
clearly margin. Making 60 to 70
points on anything is awesome.
The disadvantages are the large
minimum orders required, plus
warranty issues.
“The minimums are usually around
250 rods per style. If you can justify
that quantity, then you can buy your
own private label from China.”
Michalak, of course, has found a
solid niche with his proprietary
gear. But that’s not all he’s doing,
either. His guide service handles
“in excess of 2,200 guided days a
year on our local rivers. And that’s
two people at a time.”
Michalak is also expanding a travel
business, in conjunction with a
number of other fly shops. Among
them, they have exclusive access to
top-rate lodges in prime fly fishing
locales, from Alaska to Argentina.
Then there is the Bollibokka
Club, a private fishing club in the
Shasta National Forest, just 36
miles from Redding. Membership
is limited; the cost of fishing for
a week is $7,000 (which can be
divided between up to 10 guests).
The Fly Shop also has access to
private waters throughout the area.
Then there is the fly fishing school,
FishCamp for kids, plus Signature
Properties, the real estate arm
which sells vacation and retirement
homes, usually near good fishing,
throughout the area.
It’s all about making opportunities
for yourself, whether it means
private label gear, good service, or
branching out into different areas.
It’s a balancing act… but that’s how
the good shops are thriving. at
Photo by: Brian O’Keefe
The EPA is conducting a scientific assessment of the
Bristol Bay watershed, and starting a public process
about how mining would have an impact on Bristol Bay’s
world-class fish and game habitats. How can you help?
Go to: www.SaveBristolBay.org
Join other sportsmen and women in the fight to protect Bristol Bay.
Trout Unlimited • Sportsman’s Alliance for Alaska • Federation of Fly Fishers • Dallas Safari Club
American Fly Fishing Trade Association • American Sportfishing Association • Izaak Walton League of America
Wildlife Forever • Delta Waterfowl • Theodore Roosevelt Conservation Partnership
Bull Moose Sportsmen’s Alliance • Backcountry Hunters & Anglers • North American Fishing Club
North American Hunting Club • Campfire Club of America
feature
On a Hairy Situation in the
Fly Fishing World...
Written by Monte Burke
There was a rumor flying around the Internet that The Fly Shop—that
venerable Redding, California, retailer—had recently taken a $20,000
order from a fashion industry buyer for the store’s entire stock of fly-tying
feathers. I had to find out if this was true. I called the shop and a man
named Cory Williams answered the phone. He sounded out of breath.
Turns out there was no $20,000 order (damn Internet).
“But I literally did just get off the
phone with a woman who bought
$2,000 worth of hackle,” Williams
said. “She wanted to return it all.
Apparently it wasn’t exactly the right
kind for hair extensions.”
This kind of return had to be a pain
in the (rear) for a shop like his, I
offered. Not really, Williams said. Not
now in this crazy time in the world
of fly shops. “As I sit here talking to
you—I kid you not—there is a lady
standing at the register who is buying
half of that return.” Williams expelled
one of those half-laugh sounds we
28
humans make when faced with the
incomprehensible. “This has all been
kind of goofy,” he concluded.
Goofy indeed.
You’ve heard about this by now, right?
Surely you have. (If you haven’t, may
I share whatever you’ve been smoking
to get into your purple haze?)
THEY ARE TAKING OUR
SADDLE HACKLE!
They—these attractive, well put-together,
good-smelling, young females—are
buying all of our fly-tying feathers to use
as adornments in their hair.
Williams told me that I had to talk
to his colleague, John Dietz, another
store worker at The Fly Shop. Dietz
picked up the phone. “I’m bald,
but I have good stories,” he said, by
way of introduction. Apparently a
woman had recently called from San
Francisco to ask if the store had any
saddle hackle in stock. She wanted to
go to Asia to capitalize on the hackle
trend, which was zooming its way
east. A day later, she drove the four
hours from San Fran to Redding,
spent three hours meticulously going
through every feather in the place,
then bought $1,2000 worth of them.
She then drove four hours back to
the Fog City and hopped on a redeye,
enroute to Asia. “This is funnier than
hell,” said Dietz.
This fad which has terrorized our
industry started in the fashion hotspot
of Boulder, Colorado. There, a salon
owner started selling what she called
“Feather extensions,” which are,
essentially, feathers bonded to hair
by carotene wax. It gives the wearer
sort of a quasi-Native American look.
Supposedly Lady Gaga horned in on
the trend. (She has also worn a meat
dress…carnivores beware!)
Then, a few months ago, came the
dagger: Steven Tyler, frontman for
Aerosmith, wore a Feather extension
on American Idol, the uber-popular
TV show where he now acts as a
judge. All hell broke loose. (Side
note on Tyler: So, this is a man who
spent the first years of his adult life
trying to look like Mick Jagger, with
his saucer-sized mouth. And now
he’s trying to look like a teenage girl?
Really? Come to think of it, Rod
Stewart attempted the same sort of
transformation, but he ended up
looking like a 65 year-old woman.)
So now flyshops, fly tiers and the
general fly fishing public are all in
a tizzy. It’s the biggest crisis since
“the movie.” There is no hackle left
in stores. Salon owners are buying
packets of feathers for $40, then
turning around and putting in singlefeather extensions for $40 (at least
in New York City). Tom Whiting of
hackle supplier Whiting Farms has
raised his prices (well, of course he
has. Wouldn’t you?).
And all of this is because of these
girls who are waltzing right into
our flyshops—those last refuges of
guydom—and buying all of our
hackle. Want outrage? Check the
Internet. Folks are talking about
spreading the rumor that these
feathers carry the bird flu. They
talk about going to bars to pick up
women with feathers in their hair, not
to score, mind you, but to get back
their tying material. It’s even been
suggested that flytiers raid Walgreens
and CVS’ stores and buy up all
the scrunchies and, um, tampons.
Who would have thought a bunch
of teenage girls could have made a
bunch of crusty flyfishermen act like,
well, teenage girls?
feathers. It’s the closest contact he’s
had with pretty young women in a
decade. Maybe forever.”
I called Paul Weamer, who manages
the TCO Fly Shop in State College,
Pennsylvania. He told me about a
phone conversation he had with
one salon owner. “She sounded like
Sally Struthers,” said Weamer. “She
didn’t want to pay full retail, she said,
because she was doing this for kids.”
Weamer didn’t bite (cold-hearted,
dude). But overall, Weamer says the
fad has been great. “Anytime you
get an actual human being to walk
into a flyshop in this economy, it’s a
win. We’ve had triple the amount of
female customers this year.”
Weamer paused. “You know, I kind of
hope this trend catches on with men,”
he said. “I’m going bald. I could use
a little Zap-a-Gap and glue a cape
to the top of my head. I’d have that
Eddie Munster peak thing going. It
would be cool.”
He’s on to something here. Instead
of viewing this as a siege on our
way of life, maybe we should view
these hackle-buying beauties as an
opportunity (not in that way, you
dirty-minded bastard). Shop owners
can upsell. Fisher says some of the
women who’ve come in for hackle
have bought other items, and two of
them signed up for tying lessons. Shop
owners can encourage new fads. That
Swiss straw that’s been sitting in that
dusty corner for decades? Tell these
young ladies about the material’s
jewelry and embroidery possibilities.
And that mucilin? You’ve been
waiting for that dude who still uses
silk line to walk in the door for a long
while, haven’t you? Guess what? He
ain’t coming. So sell these ladies on
how this natural animal fat product is
the new Botox.
And you fly tiers? Sure, you’re getting
hit hardest. But you can make it. Why
not sell your extra hackle on eBay and
make some cash to help out with rent,
buy a new moped or upgrade your
brand of beer?
Fads come and go. This one will
soon subside, and Steven Tyler will
be dyeing his hair red to look like
Carrot Top, and the dye industry will
be up in arms. Offer these women
free casting lessons. Be nice to them.
Don’t buy all their tampons. Take
advantage of this stream of potential
new converts while you can. at
29
But Williams and Dietz at The Fly
Shop seemed bemused by the whole
thing. I needed to see if that was the
case elsewhere. I called Jon Fisher at
Urban Angler in New York City, a
fashion hotbed like Boulder. Here’s
what he said: “It’s been cool. I have
the most fun watching Edwin, my
store guy. The young ladies walk in
and Edwin just appears by their side
from out of nowhere. He ushers them
carefully over to the flytying section
and walks them through the different
RECOMMENDED READING
Recommended
Reading (And Selling)
Good books, by subject, seem to ebb
and flow throughout the years. In
this editor’s humble opinion, 2011 is
definitely seeing a “high tide” in terms
of the quality of printed product… especially in the niche realm of fly fishing.
Here are three new titles worth checking
out yourselves, and selling to your most
literate customers:
tions of fishing in RMNP… season
by season, hatch by hatch, stream by
stream. It really is a marvel, by way of
technical acumen, and certainly worth
stocking for any shop near RMNP, and
for those who send traveling customers to
the purest, most protected regions of the
Colorado high country.
The Orvis Guide to Small
Stream Fly Fishing
By Tom Rosenbauer
(Universe, $35)
A Fly Fishing Guide
to Rocky Mountain
National Park
By Steven B. Schweitzer
(Pixachrome, $29.95)
There have
been volumes
written about
some of our
National
Parks—Yellowstone,
Yosemite, and
Everglades
included. And
while some
authors have
dabbled with
Rocky Mountain National Park, nobody
has nailed that locale—perhaps the least
understood and most under-appreciated
fly fishing mecca in the National Parks
system—as insightfully and thoroughly
as Steve Schweitzer has with A Fly Fishing
Guide to Rocky Mountain National Park.
Schweitzer, a regular AT contributor,
spent 10-plus years hiking and fishing the
terrain and waters in RMNP to complete
this project. Anyone who has read his
work in this magazine knows what we
already do… Schweitzer is the consummate “details” guy. True to form, he
leaves no stone unturned in his descrip30
Let’s
be honest, Tom
Rosenbauer
has done
more to
impart
practical
wisdom
on fly
fishing to the masses than anyone,
this side of Lefty Kreh. In his latest tome, Tom gets honest about
what AT thinks is the “real deal”
of this fly fishing age… reconnecting with, and re-appreciating what
happens on small streams. Most of
us started on intimate waters… and
the future of this sport relies, by and
large, with our collective ability to
show other anglers the wonders that
can be had on the “home stream.”
Thing is, some of the most important fly fishing lessons of all are
best learned in the tighter confines
of a babbling brook. Whether the
passion leads the angler to the flats,
or the classic tailwater… the lessons
to be transposed from the creek are
permanent and practical.
In this book, Rosenbauer shares
plain-spoken insights in a very
readable, enjoyable, informative
voice (as usual). If you care about
growing the sport and increasing
opportunity and interest, you’ll be
an advocate for small stream opportunity. And this smartly produced,
visually appealing book does more
to maximize that opportunity than
anything else out there.
Florida’s Fishing Legends
and Pioneers
By Doug Kelly
(University Press of Florida,
$26.95)
Those who
truly appreciate the
culture of
fly fishing,
and share a
fascination
with the
personalities
who established the
“roots” of
the sport… especially in the legendary salt waters around Florida…
will be enthralled to read Doug Kelly’s poignant homage to the personalities (and places) that defined the
golden age of salt water fly fishing.
The baseball fanatic longs to read
the “inside scoop” about Babe Ruth,
Jackie Robinson, and Ted Williams.
Oh… Ted Williams is in this book
also, as are Curt Gowdy, Billy Pate,
Stu Apte, Joan Salvato Wulff, Ernest
Hemingway, and Jimmie Albright,
among many others.
My favorite chapter in the book is
focused on Bill Curtis. I had the
NEW FOR
2011
chance to fish with Bill a decade
ago… and it was the most eye-opening fly fishing experience I’ve ever
had. Kelly nailed his Bill Curtis
chapter, capturing the essence of the
man and the experience of fishing
with him, in spades.
BONE FLATS COLLECTION
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The forward-looking future of fly
fishing, no matter how you slice it,
depends on proper respect and appreciation for those who cleared the
path for all of us now. And the best
stories, and characters, inevitably
revert to the waters of Florida.
MAX
I
SUN
P
M VENTIL
MU
ION
AT
Books reviewed by Kirk Deeter
0+
PF3
This is a beautifully written, interesting and captivating work, most
worthy of the attention of dabblers
and aficionados alike. at
extreme ventilation
TECTION U
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1 - 8 0 0 - 4 3 7 - 3 7 9 4 · W W W. R A I L R I D E R S . C O M
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11/9/10 2:56 PM
feature
Do Fish, On the Magic Bus
Written by Will Rice
“Innovation is the ability to see
change as an opportunity –
not a threat.”
—Origin Unknown
Q: What do you get when you
combine six guys from Denver,
nine fly rods, a 33-foot Coachmen
recreational vehicle, the Big Horn
river and a brown trout?
A: Innovation.
In today’s ever changing economic
and business environment, innovation
is not only important, it can mean
the difference between survival or
extinction. Coming up with new
32
By no means is this a new or
revolutionary thought in business.
Harvey Firestone, founder of
Firestone Tire and Rubber
company, said it best back at the
turn of the last century:
“Capital isn’t so important in
business. Experience isn’t so
important. You can get both these
things. What is important is ideas.
If you have ideas, you have the
main asset you need, and there
isn’t any limit to what you can do
with your business and your life.”
Innovation is exactly what
brought the Fish Bus to market
in central Colorado. Minturn
Anglers is a full-service fly shop
and guide service located just
west of Vail, and less than 2
hours from Denver. The shop
runs a fleet of three luxury
motor-homes and takes groups
of four to eight anglers to a
number of world-class fishing
destinations in the West. Road
trips range from two to nine
hours from Denver. Fish Bus
combines a multi-day guided
fishing experience with shortto mid-range distance travel
opportunities.
The longer-range destinations in the
2011 line up include trips to the
San Juan River in New Mexico,
the Big Horn in Montana, and the
North Platte in Wyoming. Shorter
range trips to rivers like the Yampa,
Blue, Eagle and the Roaring Fork
are also available for those who are
looking to spend more time in the
water than on the road.
Florida’s Fishing Legends
and Pioneers
Doug Kelly
“The famous characters of Florida fishing live again
in these pages. Kelly’s is the best kind of writing
about angling—the kind that you want to take
your time to enjoy, that at the same time compels
you to go out fishing immediately.”
—David Conway, managing editor,
Florida Sportsman
Hardcover $26.95
randy Wayne White’s
Ultimate tarpon Book
The Birth of Big Game Fishing
Edited by Randy Wayne White
and Carlene Fredericka Brennen
“Full of rich historical stories of great fish and even
greater fishermen. Masterfully edited, a joy to
read, Randy Wayne White’s Ultimate Tarpon Book
is a must have for every angler’s library!”—Hilary
Hemingway, author of Hemingway in Cuba
Hardcover $34.95
secrets from Florida’s
master anglers
Ron Presley
“Unique in that it includes a variety of approaches
to inshore saltwater fishing, provided by a broad
selection of some of Florida’s finest fishing guides.
There is something for almost everyone who fishes
the Florida coast.”—Richard A. Davidson
“There isn’t one of our readers that doesn’t have
something to learn from this book.”
—TheOnlineFisherman.com
Paperback $24.95
University Press of Florida | 800-226-3822 | www.upf.com
Gainesville, Tallahassee, Tampa, Boca Raton, Pensacola, Orlando, Miami, Jacksonville, Fort Myers, Sarasota
33
Each four-day excursion is
all-inclusive and ranges in price
between $1085 and $1985.
Included in every Fish Bus
adventure is an experienced guide
on the water, transportation and
lodging, equipment if needed, flies
and terminal gear, beer/beverages,
and three meals per day.
catch some great stories ( and some great secrets! )
ideas and doing things differently
shouldn’t be reserved for idle
downtime. On the contrary,
innovation should be in the
forefront of the minds of everyone
who owns or manages a business.
feature
with local outfitters at their targeted
destinations.
“Each of our senior guides
and owners have their favorite
rivers and they will represent two
of the four guides on a Fish Bus
trip,” explains Sprecher. “The
other two guides are local guides
depending on where we are going.”
So how has all this panned out
from a business perspective?
At this point, it is too early
to tell but the shop is bullish on
the program.
“We knew when we got into the fly
fishing business that we would never
be millionaires. But making our mark
in fly fishing and bringing new and
The inspiration for the service was
fairly simple.
“My partner and I are avid fly
fisherman and travel frequently to
destinations in search of world-class
fishing. We have never had a lot of
money so we often take road trips to
fish as opposed to flying,” said Matt
Sprecher, one of the owners of the
Minturn Angler. “Offering new and
innovative guided trips is a way to keep
our shop fresh. Our customers know
that we are always working to provide
them with the best fishing opportunities
and new adventures.”
But what about the issue of
“bootlegger” guides bussing in on
other operators’ waters?
As part of their business plan,
the Fish Bus decided to partner
34
“We all work well together
and have a great time and
it is infectious to our clients,”
said Sprecher. ”All the guides
and Fish Bus clients ride
together, have dinner together,
tie flies, talk about their day
and share stories.”
innovative ideas to the industry is
worth more than money to us” said
Sprecher. “Part of the allure of the
Fish Bus is that we can’t wait to see
what the future holds. The money will
come, we are just happy to be where
we are today.” at
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BIMINI BAY OUTFITTERS
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SMITH OPTICS
EXOFFICIO
OUTSIDE MAGAZINE
SPORTSMAN’S ALLIANCE FOR ALASKA
ALASKA WILDERNESS LODGES
ELKO FLY SHOP
NORTH COVE OUTFITTERS
BACKCOUNTRY.COM
FIN & FEATHER
ORVIS
BACKWOODS
GREAT OUTDOOR PROVISION CO
ROBINSON’S OUTDOOR STORE
BASS PRO SHOPS
GOLDEN RIVER SPORTS
SILVER CREEK OUTFITTERS
BILL JACKSON
JACK DENNIS
SPORTSMAN’S WAREHOUSE
BUD LILLY’S TROUT SHOP
JOE’S SPORTING GOODS
WESTERN RIVERS FLYFISHER
L.L.BEAN
WHOLE EARTH PROVISION CO
SAMPLING OF RETAILERS }}}
CABELA’S
For more information check out
OUTDOORRETAILER.COM
OPEN AIR DEMO • AUGUST 3, 2011 Jordanelle Reservoir, UT
TRADE SHOW • AUGUST 4-7, 2011 Salt Lake City, UT
feature
Adventures in Fly
Fishing Retail
Written By Michael Gracie
My nemesis the
fly shop...
In 1999, I received an invite
to chase golden trout in the
Desolation Wilderness above
Lake Tahoe. I had never seen a
picture of one until that point,
let alone touched one, so I dove
into research hoping to get a
leg up. There was a dearth of
information on the Internet, but
I did also identify a local fly shop
– as such, I put a visit to that
shop high on the “to-do” list.
Photo by Michael Gracie
36
Upon arrival, I went straight to
that establishment. While my
fishing buddy scurried over to the
liquor store, I perused the walls
for some tippet, and then moved
to the counter to inquire about
fly patterns. The first question
out of my mouth was, “Do you
guys carry a cheap float tube?”
The clerk stared back blankly,
and then pointed to a pile of
half-opened boxes in the far
back corner of the shop. Before
I made my move to the area, I
made the mistake of mentioning
where I was headed, and then
inquiring, “What are those fish
eating right now?”
The answer from the shop hand…
“Bugs.”
I kid you not. Needless to say, I
immediately tucked my wallet back
into my shorts, engineered an abrupt
about-face, and walked right out
the door. I caught a few fish that
weekend, even without Joe-Brilliant’s
help. And it wouldn’t surprise me
if that shop is no longer in business,
and Joe is now lounging in his
parents’ basement.
There is a fine line, drawn across
the front-door threshold, between
angler and shop employee. The
fly fisher rolls in, often attempting
immediately post-greeting to
display his or her expertise through
the ensuing discussion. Meanwhile,
the “help” must endure the stories,
sometimes bordering on arrogance,
in order to make the sale. It’s a
constant trade-off between ego
and economics.
I’m as guilty as anyone of showing
my plumes, but that incident in
Tahoe left me jaded.
Enter stage left...
While my conclusions are
somewhat preliminary –– I believe
shop success comes down to two
elements: Being extremely wellorganized, and having people that
understand and are driven to help
other people. I don’t think one
point, individually, can hold the fort
either... they must coexist.
Passion should be job…1,422,685.
Many have heard the story: A
fanatical fly fisher is given the
opportunity to buy their home shop,
and subsequently mortgages the
farm to do so. A few years down
the road, the establishment is in
disarray and creditors are calling
daily. Customers slowly move
down the street, and pretty soon
a permanent “Gone Fishing” sign
shows up on the front door. The
presumption is that fly fishing retail
is just a bad business to be in.
“Trout’s” owner, Tucker Ladd, has
been fly fishing since he was in his
teens. General manager Jim Kanda
first picked up a rod at age 10.
While the duo is as “fishy” as they
come, they also have college degrees
in Natural Resources Recreation
from Colorado State University.
Add a combined 15+ years guiding,
working in, and managing fly shops
(Tucker at Gorsuch Outfitters and
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15
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37
Last November, I was invited to
try my hand at the fly fishing retail
trade, and subsequently became a
[very] part-time employee of Trout’s
Fly-Fishing on 6th and Marion in
Denver. Initially a winter weekend
gig, now morphing into more of an
“on call” arrangement, everyone
I talked to about it was quick to
mention the employee discounts I
was going to get! Frankly, discounts
were the last thing on my mind
– I’ve got more gear than I know
what to do with, as it is. I was more
interested in understanding the
business itself – what makes a shop
economically viable, as well as how
one competes successfully with the
big boxes, Internet marketers, and
direct sales. And most importantly,
what keeps patrons coming back (or
keeps them from just walking out)?
feature
a client/server enterprise resource planning (ERP)
system stealthily runs the show. Inventory comes
in the door, is immediately recorded down to the
hook, and a point-of-sale terminal lets it go when
the customer decides it’s a “must have.” GM Kanda
reconciles everything to daily reports, and an annual
inventory count supplements those controls. Trout’s
knows what’s selling and what’s not, and to whom and
when. It gives the business unique insight as to what
is happening within this shop, as well as the broader
industry, and allows them to make more informed
decisions, faster.
Trout’s recently announced they’re launching a new
website, one significantly more timely and informative.
It will also place additional emphasis on E-commerce.
With orders from across the country (and world)
growing in frequency – I know, as I’m often asked to
fill them – they are already moving to the inevitable
next stage in the business’s competitive development.
That job hasn’t been easy, but it’s destined to pay off
because the shop was prepared to begin with.
As for that whole “passion” bit, well it needn’t be
lost. Trout’s hosts a now annual trip to New Orleans
for its crew. Despite the shop’s name, the search
is for redfish. Par for the course, they bring back
good stories, plus additional knowledge on gear and
techniques that are outside their namesake realm.
Jim at Gore Creek Fly Fisherman) and you have a
recipe for understanding anything and everything that
can go right and wrong in the business.
The Trout’s formula begins with that experience, but
it certainly doesn’t end there. After purchasing the
shop in 2005, Tucker moved it to the present location
less than two years later. The location is prime – a
significant base of career professionals live in the area,
and the 6th Avenue position makes it a prominent
weekday afternoon drive-by reminder for any local
angler who might be fishing on a given weekend.
Management leverages that curbside appeal through
consistent updates to their website blog, as well as social
media venues such as Facebook and Twitter. It’s an
investment of time, but one that is paying off – Trout’s
is thriving in the face of difficult economic times.
Marketing is great, but if you don’t have a solid back
office, the situation can quickly spin out of control. Mr.
Ladd was quick to realize that, and early on, made the
investment in sophisticated information technology 38
It’s the people, silly...
Rick Mikesell exemplifies the new breed of fly shop
employee – dedicated to the sport, and willing to go
the extra mile to make sure clients are well served.
“Being knowledgeable means better serving our
customers, which has the added benefit of
helping me as angler,” he said. “I get first-hand
knowledge on successful tactics, and I also
get to learn from other fly fishers’ mistakes
as we attempt to overcome new angling
challenges together.
As the de-facto assistant manager at Trout’s, Rick
has committed to memory all the brands the shop
carries, and what’s coming down the pike in terms of
new products. He’s put in the time to understand the
shop’s inventory system from the ground up, checking
in what’s been received, resolving discrepancies, and
pricing SKUs prior to display. He often knows what
is in stock without pulling up to a keyboard. But
developing a loyal client base isn’t always just
about the sale.
Rick caught his first redfish in February, and is
willing and able to talk about it with everyone
who stops by.
Rick rises early even when he isn’t headed fishing.
After large doses of caffeine, he begins perusing the
web-based stream flow reports to see what’s trending
up and down, then hitting the local chat boards for
clues into what might be “hot” on any given day.
Then he heads to work, where the information he has
collected is disseminated to each and every Trout’s
guest who inquires. Since joining the shop staff, Rick
has also taken an interest in saltwater rigging, technical
European nymphing techniques, and two-handed
TFS_AnglingTradeMag_HalfPageAd 5/13/11 11:39 AM Page 1
casting. The extra effort, as he puts it, pays off:
Paradise
Trout’s hasn’t sacked me (yet)...
As mentioned earlier, I thought this adventure in
fly-fishing retail would be a short-term opportunity,
ending with the start of spring. Now I am sticking
around (if only to cover for the occasional late night).
I won’t be making a career out of it, but I have
seen that with the right ideas and the right people,
it is possible.
Like with any other well-run business.
at
I S T H E P E R F E C T WA Y T O B E G I N P O S I T I O N I N G Y O U R S H O P
I N T H E L U C R AT I V E W O R L D O F S A LT WAT E R F I S H I N G T R AV E L !
Join The Fly Shop’s new Angling Travel Network and gain instant access to a cross-section
of some of the most famous and sought after fly fishing lodges and camps in the world.
Most successful fly shop owners host a few trips each year, wading into travel
in their off-season, generating a few commission dollars for the business while, at the
same time, realizing a dream trip that otherwise might not be affordable. Having fun
and getting paid for it is what our customers think we’re all about.
But the fact is, a well-planned and well-executed strategy dovetailing angling travel in
any shop requires experience, and time that can pull you away from focusing on your
core, bread-and-butter profit centers. More than that, many in the fly fishing business
have learned that venturing beyond our comfort zone to endorse or promote products
(or places) we aren’t familiar with can be catastrophic without help.
If you’ll give us a chance, we’ll help you integrate travel into your shop
and show you how to build and maximize the ancillary tackle sales and the customer
loyalty a travel business can generate. We’ll make it easy and profitable for you.
Paradise Lodge on the southern Mexican Yucatan, just above the Belize
border, is a perfect example of what our new Angling Travel Network is all about:
Paradise is easy-to get-to, in the safe, rural coastline below Cancun.
There are dozens of nearby, tarpon-filled lagoons and Paradise is within easy
striking distance of the isolated flats of Chetumal Bay, and Bahia Espiritu
Santo, both great places to fly fish for bonefish, permit, tarpon and snook.
Paradise is modestly priced in 2011 at only $1,995 per week.
It’s a point that resonates in this economy and makes sales easier.
It’s the ideal-sized operation for small, easy-to-fill hosted groups.
Five paying anglers qualifies a shop for a host and a healthy commission
of $300 per guest.You do the math, it’s a no-brainer.
e-mail: [email protected]
800-669-3474
39
Get in touch with us today!
www.theflyshop.com
feature
Six Ways Groupon Can Help
(or Hurt) A Fly Shop
Written by Steven B. Schweitzer
The previous decade was the decade of the
i-device and Google. The current decade is
already coined as the decade of social media.
Early entrants such as Facebook and Twitter
are well known and established players. Recent
entrant Groupon went from $0 valuation to
a purported offer from Google of $6 billion in
just over two years – the offer was declined, by
the way. Google was interested in Groupon’s
core model, which depends upon small
businesses. Question is, is Groupon good for a
small business like a fly shop? Let’s explore.
The Groupon Model
Groupon is credited with creating “social commerce,” a blend of e-commerce, collective buying
power, and social media/marketing. By recent
accounts, Groupon has 37 million plus subscribers
and is growing. Groupon delivers over 700 “groupons” world-wide daily, taking in 50% of the purchase of each groupon sold. (A groupon is nothing
more than an online coupon delivered to subscriber
e-mail inboxes.)
Subscribers sign up for the daily e-mail in hopes of
getting a killer deal in their area for a product or
service. If the minimum amount of groupons are
purchased, the deal is on. Groupon encourages businesses to offer at least 50% off the standard retail
price and honor the offer for at least six months.
So, for example, if a round of golf at a local golf
course costs $80 for 18 holes, a groupon might offer the same round of golf for $40 and throw in
a free electric cart. Groupon rakes in 50% of the
sales price, taking in $20 for each groupon sold. If
500 groupons are sold, that adds up to some serious scratch (now you can see Google’s interest). Of
course, there can be fine print to the offer as well,
40
What Groupon Offers
making groupons somewhat less of a deal and more
of a hindrance to cashing them in. So, if groupons
are profitable for Groupon and a crap shoot for the
customer, is there value to the small business, particularly the fly shop?
Six Ways Groupon Can Help (or Hurt)
Your Business
To a small business, Groupon delivers a compelling value
proposition, namely:
1. A platform to generate new customer leads
2. A platform to deliver geographic-centric deals
3. A “pay-for-performance” model. A small business pays
41
feature
nothing if the minimum amount of groupons aren’t sold.
4. A pure e-mail marketing/advertising medium
5. A way to generate buzz and leverage
word-of-mouth marketing
6. A
way to create a “purchasing sense of urgency”
with the customer
8. Generating buzz and new clientele for new or relocated
businesses.
This all sounds like the perfect companion to a small business,
right? Well, maybe not.
9. Promoting commoditized services or products.
What Groupon Tells You
Groupon delivers a compelling case about bringing a small
business the most important asset: a new customer. And it
touts the immediate cash infusion that can help a small business
(although you may not see all the cash until 90 days after the
coupon runs). But how can a business model be effective when
you get only 25% of the normal retail value (Retail value –
50% discount coupon – half of the remainder goes to Groupon, the other half goes to you). Groupon does offer several
benefits to a small business as seen in Table 1 (below).
Groupon appears to be very transparent with a set of decent
demographics as well, providing age, education, marital status,
gender, employment status and income levels.
The Grouponer is young – between 18 and 34, a prime
demographic for a fly shop. They tend to be educated, with
80% having a bachelor’s degree or higher. Half are single
and a third married. Three-quarters are employed full-time
and 70% make $50K or more annually. But here’s the most
telling statistic: 77% are women. For fly shops then, crafting
Groupon deals should appeal to women to create the most
bang-for-the-coupon.
Table 1. - When Groupon is Good for Business
1. G
etting rid of excess or discontinued inventory that wouldn’t
otherwise sell
2. Generating repeat customers (with a caveat, however)
3. When add-on or complimentary sales occur
4. Getting rid of excess capacity (think hotel rooms or services)
the demographic the coupon is being delivered to…a paradigm shift in the way traditional marketing is done – where
you create an offer and then pick your demographic. With
Groupon, you don’t get to pick the demographic, you have to
create an offer around it.
5. W
hen traffic is more important than profit (such as an event,
film tour, etc)
6. Generates cash flow and keeps the lights on
7. A
ttracts a new younger demographic (68% are 18 to 34,
77% are female). Key takeaway: be sure your offer reaches
42
10. If your deal cost is fixed and you can calculate a clear ROI.
11. C
o-Marketing products and services together, even across
small businesses (eg – A hotel/guided fly fishing package).
12. Acts as a good gift purchase.
What Groupon Doesn’t Tell You
Groupon, however, does not go beyond the top line in exploring
if a Groupon deal is good for your business. Yes, cash flow is
good, but in many cases, a Groupon coupon can tank a business as fast as it boosts it. Table 3 summarizes how a Groupon
deal could hurt your business.
With Groupon, it pays knowing what to expect beforehand.
Groupon pays in installments up to 90 days after your deal goes
live, so don’t expect immediate cash inflow. Groupon charges
a small fee for any credit card transaction. Groupon’s agreement prevents you from using a similar deal-of-the-day service
for 12 months. Groupon takes a minimum of 50% of the sales,
sometimes higher. Current Groupon demographics don’t favor
the fly shop. You may not have control over the copy points in
the offer – for better or worse, Groupon prides themselves in
preparing the online advert. You must consider whether that’s
good for your brand or not. And finally, plan ahead. In some
markets, there’s a several month waiting list to get your coupon
distributed online.
A Coupon or a Gift Card?
Is a Groupon coupon considered a coupon or a pre-paid gift
card? A coupon can have an expiry, but in most states, a gift
card cannot. (Check with your local and state level regulations.) Giving somewhat ambiguous guidance and in defense
of their growing list of lawsuits against them, Groupon issued
this statement:
“Law doesn’t really specify if Groupon is a gift card or a coupon. Gift card law is more stringent, so that’s what we adhere
to. A Groupon is good until its expiration date; at that time, the
merchant will still have to honor what you PAID (NOT face
value), for five years or in accordance with state law. It’s five
years in Illinois, and that’s the strictest in the country, so that’s
what we ask merchants to abide by.”
Groupon essentially tells retailers to consider the purchase as a
gift card. Knowing gift card law in your state becomes essential.
Gift card processing watchdog, ScriptSmart, summarizes gift
card law by state: http://scripsmart.com/states.
Is Groupon Good for You?
The most obvious way to calculate a Groupon deal impact on
your business is by doing a simple ROI analysis. But calculating
ROI can take many forms, be confusing and can be daunting,
to say the least. Fortunately, we have created the Angling Trade
Groupon Decision Maker spreadsheet, a tool that calculates
ROI and provides key decision metrics to consider before entering a Groupon deal. Download it at www.anglingtrade.com,
under Categories - click “Downloads”.
Download Bonus: download a 1-page summary of Groupon’s 6-point value proposition including what advocates and
contrarians say about each.
Examples Using the Angling Trade Groupon Decision
Maker Tool
Using the Decision Maker tool, we’ve modeled some common examples and analyzed two real-life Groupon deals, one
insanely large and one modestly in control (Figure 1).
Figure 1. – Two Groupon Deal Examples: Sky Diving
and Outdoor Gear & Apparel
Table 2. – Groupon Deal Comparison Summary
What did the model tell us? Table 2 (above) summarizes the output of the Decision Maker tool. The message
becomes clear when unemotional figures and math are
framed around the deal. Running the numbers delivers
five clear themes:
1. Big value deals carry high risk and can tank a business’s
bottom line in a hurry.
2. To the retailer, service offerings are less appealing than
product offerings. Delivering service offerings requires
expensive and limited human capital, and of course a
finite amount of time to perform the service.
3. Product offerings are easier to manage and are less labor
costly. Smaller dollar items generate the same foot traffic as large ticket items; limit your ROI risk by offering
smaller dollar items.
4. High value items are often high margin items are often
1x-3x lifetime sales = bad for Groupon deals. Does it
make sense to discount your high-margin product (rods,
reels, waders) away in order to generate new foot traffic
that has no other choice than to buy commodity lowmargin items?
Of course, there are situations where Groupon is not good
for business – particularly when you can’t deliver on what
you’ve promised. Table 3 (next page) summarizes when
it’s not advised to use Groupon.
43
5. High value deals + high volume coupon sales = recipe
for disaster. Age-old adage: You can’t make up margin by
selling more volume.
feature
Table 3. - When Groupon is Not Good for Business
1. G
roupon’s agreement is not a win-win: the online agreement
locks in a business for 12 months, preventing them from
using another daily deal website, and Groupon starts the
negotiations at their take being 100% of the sales price.
2. G
rouponing tends to cheapen a brand – be cautious you
don’t hurt your brand that took eons to build.
3. C
oupons train your customers to shop only when you offer
discounts. And they train your customers to shop around –
defeating customer loyalty.
4. B
eing unprepared or understaffed to deal with a potential
large take on the offer; phone calls, dealing with angry folks
who didn’t read the fine print, etc.
5. W
hen you never get repeat sales; you have sunk customer
acquisition costs; Groupon customers tend to only spend the
Groupon value. You are forced to make up the profit loss on
the backs of your loyal customers.
6. S
tudies have shown delivering products or services have very
little effect on add-on sales or generating repeat customers.
7. W
hen you have to back out of the offer because of a supply
issue (you’ve just acted as your competitors’ best marketer).
8. W
hen you want to promote exclusivity or a unique
product/service.
9. When promoting new products or hot selling items
(why discount?!)
10 When your deal costs are variable or unpredictable.
11. For most small businesses, Groupon’s deep discount model
is not a sustainable marketing practice.
12. A potential negative effect on loyal customers: How do you
handle the loyal customer who feels like a chump for missing out on your special email deal?
13. You still have to convert the new Groupon customers
into long-term loyal customers. This is easier said than
done (coupon clippers don’t tend to be loyal customers
to begin with).
14. Discounting high margin items take away your only opportunity to boost the P&L. High margin items are often
1x-per-lifetime purchases. Don’t throw the baby out with
the bathwater.
Current Research is Thin. Early Results Mixed.
Research shows only 22% of customers come back to the
business for repeat sales. Uptal Dholakia of Rice University
conducted a survey – he found 42% of small businesses that
used Groupon would not do it again. “If things continue the
44
way they are, I would be very surprised if it’s sustainable,”
says Dholakia. He surveyed 150 businesses that ran promos in
2009-2010. About a third had not turned a profit as a result
of the deal. His study found that businesses that sold more
than 1,000 groupons were less likely to turn a profit (ahem…
our Decision Maker tool supports that data point). Being unprepared for the overwhelming volume was the culprit. The
study goes on to share that only 25% spent money beyond
the Groupon deal and less than 15% came back for repeat
business. Other think-tanks are chiming in as well - The Wall
Street Journal reported that 78% of Groupon customers don’t
return. An Accenture study showed that 78% of Groupon
customers want mobile coupons, not emails. Comparing the
independent research with what Groupon states on their website – the storylines don’t match. Groupon states 95% were
satisfied with the Groupon experience, 95% would use them
again, and 96% recommend Groupon to other businesses
(http://www.grouponworks.com/why-groupon).
Industry Early Adapters Share Experiences
For a new start-up, Groupon can be an overwhelmingly
good thing.
Rob Snowhite, the Fly Fishing Consultant, runs a one-man
start-up guide business servicing Metro D.C. and Northern
Virginia. He was struggling to fill his appointment book until
his wife tipped him off about Groupon. His first deal ($40 for
2 hours of guide service) netted 514 2-hour trips sold. He ran
it again and attracted another staggering count of 1,353 deals
sold. “I thought I’d sell like 40 to 50 coupons” Snowhite said,
“Groupon told me I had over 6,000 unique coupon views the
first day alone.” Now comes the hard part – filling the demand.
Snowhite says “I’m not taking lunches or bathroom breaks, I
am guiding from sunup to sundown, 7 days a week. Scheduling
is insane, it’s just me, I wish I had an assistant. I can’t schedule
while I am on the water.” Despite the long hours, Snowhite
says he would do a Groupon again, but this time, wait until all
the coupons expire. “I don’t have a storefront and I am a startup business, so attracting new customers is key,” says Snowhite.
He estimates 99% of the coupon buyers are new customers
and 10% will become repeat customers. There’s a high probability that many will not take advantage of the deal before it
expires. Snowhite projects upwards of 50% breakage, stating a
positive of the Groupon experience is he gets paid whether they
show up or not. Snowhite does fear the procrastinators will
wait to the last minute to cash in on the deal. How will Snowwhite handle this? “Most likely,” he said, “I’ll have to extend
the expiry date to fit everyone in.” If Groupon is considered a
gift card purchase, he will have to.
Small value Groupons do attract new customers, but
abuse too
David Leinweber of of the well-established Angler’s Covey in
Colorado Springs, CO, ran a Groupon in June of 2010 pro-
moting a $10 coupon for $25 worth of merchandise. He was
after what he terms the platinum prize for a retailer – a new
customer. “I was looking to attract new money walking the
aisles. There’s no other reason to do it [run a Groupon promotion],” said Leinweber. Three-hundred and forty three
takers grabbed his first Groupon deal. He decided to run
another six months later, attracting 535 grouponers. Much
to his surprise, they weren’t all new customers, however. If
fact, Leinweber estimates 70% of the deals were sold to existing customers. And of those existing customers an estimated
10% were abusers buying multiple deals for themselves, despite clear terms against it. “One guy signed up under every
email address in his house and used all the coupons himself.
So much abuse soured me on the experience,” stated Leinweber, “I probably won’t ever do it again [run another Groupon
promotion].” Leinweber estimates that 30% of the existing
customers would have purchased from him anyway; effectively giving away profit. Lesson Learned: Leinweber believes
his first Groupon campaign brought in all the new traffic and
the second go-round added little incremental value. As for
turning the 30% new customer base into repeat visits, Leinweber says it’s still too early to tell.
Tips For Using a Collective Purchasing Service
Even with the high probability of a negative ROI and current research giving the Groupon model a sour look, there still
might be reason to use Groupon for your business. From the
mouths of those who have done it come some sage advice on
using a service like Groupon:
• Consider offering a loyalty rewards program in place of or in
conjunction with a groupon discount.
• Sign-up for Groupon and follow it religiously for 30 days
before thinking of using it for your business.
• If you decide to use Groupon, introduce a small ticket item,
where you manage the price-point and potential loss. Limit the
deal scope and tenure. Make sure you can deliver on 100% of
what you offer.
• Train your staff ahead of time for the incoming rush of deal
seeking mongers.
• Since Groupon doesn’t dole out email addresses of those who
bought your groupon deal, be prepared to gather that info at
every chance possible. This is your only connection to bringing them back in your store for repeat sales.
• There’s no way around it, Groupon boils down to an advertising cost…consider it as such and nothing more.
• Don’t expect to make money on coupon breakage, that is, the
• Forget about expiry dates. Honor the coupon no matter
when it’s presented.
What’s Next for Collective Purchasing Services?
I’ve been lurking Groupon since late 2010, and social media coverage for a few years. As Groupon matures, it seems
Groupon “deals” appear to have less value and are becoming less attractive to the general consumer. Here are my four
predictions for the future of collective purchasing services,
namely Groupon:
• Prediction #1: Fraud and coupon/gift card theft will rise.
Obscure and off-the-wall entrants will use Groupon for pure
lead generation – which leads to more Groupon ad fraud and
more coupon/gift card theft. The new entrants will outsmart
and outpace the delivery of anti-fraud solutions for the foreseeable future.
• Prediction #2: Groupon’s 50% cut is not sustainable. Groupon will reduce their cut to attract new and more attractive
Groupon participants and deals, which in turn supports Prediction #1. That will essentially be the beginning of the end
for Groupon. Maybe they should have jumped on Google’s
purported offer.
• Prediction #3: Groupon (& Groupon-like services) will be reduced to just another online avenue to liquidate excess capacity
or overstock commodity items. Expect less attractive deals to
continue. Anyone for $0.50 spools of expired leader material?
This is not the business model for a specialty retailer.
• Prediction #4: Groupon will be sold to an established customer acquisition engine and the coupon model will shut down
or migrate into a new business model. Let’s face it, Groupon
excels at customer acquisition, not product sales. The value of
Groupon to a potential suitor is 50+ million subscribers which
are mostly affluent, educated 20-35 yr old females. It’s not farfetched to think of Groupon in three years as the best online
portal to shop women’s shoes, apparel, house wares, home care
and baby accessory deals.
The Acid Test
Not every marketing solution works for every business. Using
Groupon means you’ll take home no more than 25 cents on
the dollar of retail value to get new customers. Converting
those new customers to loyal repeat business is the key to using
Groupon. Ask yourself, “If I don’t get new repeat business,
have I made money with the deal?” If you answer ‘no’, then
run fast, there is such a thing as bad sales channels, and this just
might be one of them. at
45
• Send coupons direct to your customers’ phones instead.
number of coupons that go unused. Social coupon redemption rates hover around the 90% mark (10% breakage).
BACKCAST
“As with any venture that’s a great
success or a great failure, it’s never just
one thing,” says Oregon-based reel
manufacturer John Bauer, who was a
Kaufmann’s supplier for the past 14
years. “You could point to a crappy
economy, you could point to financing
their new store, you could point to a lot
of things.”
Exposed
What lessons can be learned
from the Kaufmann’s
Streamborn disaster?
Written by Tom Bie
I was maybe 12 years old the first time
I walked into Kaufmann’s Fly Shop,
just off 99W in Tigard, Oregon. Living
down the road in Newberg, I remember walking in, finding a Kaufmann’s
Stimulator in the fly bin, and thinking to
myself how cool it was that this guy had
a store and a fly named after him—the
very definition of success to a tweenager
just entering the sport.
As most people in the flyfishing industry
know, Kaufmann’s wasn’t “this guy”
but two guys—brothers Randall and
Lance Kaufmann. Together, the two
of them ran Kaufmann’s Streamborn
as one of the most successful fly shops
in the country for the better part of 40
years, until Lance bought out Randall four years ago and Kaufmann’s
shiny reputation began to fade. The
fall from grace—by one of the only
fly shops in the country with a truly
national “brand,” culminated with
the announcement in early May that
Kaufmann’s planned to file for Chapter
7 bankruptcy protection.
Regional message boards lit up with
rumor and innuendo about what had
caused Kaufmann’s demise, but the
truth is that the downfall didn’t happen
overnight, and it wasn’t caused by one
factor, but many.
46
But for Bauer, as with other
Kaufmann’s suppliers, many of
whom will likely go unpaid as a
result of the bankruptcy filing, the
closing magnifies some larger problems within the industry.
“Every time something like this happens, it has a tremendous impact on
the viability of the specialty fly shop
in this country—no matter where you
are,” says Bauer. “It’s just one more
event that’s going to cause customers
to go to a Bass Pro Shop or Cabela’s.
The immediate ugliness is the money
we’re owed, but even harder is that
Kaufmann’s was one of the few shops
in the country that could turn a lot of
product. And there is nobody to replace
that in the Portland market.”
A few will try. In October of 2010, after
a decade as a Kaufmann employee, Joel
La Follette opened Royal Treatment
Flyfishing in the Portland suburb of
West Linn. He says the Rose City has
always had the ability to support more
than one shop.
“The Portland market was underutilized by the industry,” LaFollette says.
“And if you wanted to open up a fly
shop, it was pretty much impossible.
Because they [Kaufmann’s] had all the
product lines, and they definitely kept
people from getting certain things.”
Like Bauer, LaFollette agrees that many
factors contributed to Kaufmann’s
closing and his decision to move on. “I
don’t know what the final tipping point
was, but as an employee, there’s only so
much you can do,” he says, “I had to
make a decision about what I was going
to do. And since other individuals had
to make the same decision, it should
have been pretty obvious that there
were some issues.”
Two of those “other individuals” are
Jerry Swanson and Randy Stetzer, each
of whom worked for Kaufmann’s for
30 years. Swanson left last year to form
his own travel agency, and Stetzer now
works for Vancouver, Washington-based
Rajeff Sports.
One of the biggest factors for
Kaufmann’s demise, mentioned by
both Stetzer and La Follette, is the decision to stop publishing the company’s
print catalog.
“That was their identity—no question,”
says Stetzer. “And as soon as that was
gone, they were no longer in the public
eye. I fought tooth and nail to keep it.
I know it’s expensive, but in the grand
scheme of things, it pays for itself manyfold. Once it was done, none of those
customers ever heard from Kaufmann’s
again. And you just can’t do that. You’re
sinking yourself.”
“That was the beginning of the end,”
adds LaFollette. “That catalog was one
of the things that helped establish them
as a large player in the industry. It would
be really hard to duplicate that now,
because print media and mailing costs
are so high, but if your customers come
to depend on that as their source of
information, then you’ve got to keep it
going—that’s your lifeblood.”
Still, despite the fall of Kaufmann’s being
bad news for the industry in general and
Portland in particular, Bauer, Stetzer and
LaFollette all say they have no ill will toward the Kaufmanns, and all still believe
in the future of the specialty fly shop.
“It took a long time for me to get up
enough guts to do this,” La Follette says,
in reference to opening his own shop.
“And I’ll be the first to admit: Without
the experience I gained at Kaufmann’s,
this wouldn’t have been possible. I
started off at a little Orvis shop before I
went to work for Kaufmann’s, and I got
to see good decisions and bad decisions
made at both places. I’ve received a 13year business education. And for me to
commit to doing this, I have to believe
that this is not a stupid thing to do, this
a smart thing to do. This is a good business decision.” at
ASA ICAST Ad AT_Layout 1 5/4/11 3:45 PM Page 1
At some point in your life someone stuck a fly rod in your hand, changing the very trajectory of
your existence. Certainly they had the best of intentions, and perhaps even a pretty good inkling
of where all this would lead. Either way, here you are jumping around this planet trying to cram as
much saltwater spray and moss-covered solitude into your life as any fly fisher could ever hope for.
Some don’t understand your addiction. Maybe you should stick a fly rod in their hands.
www.sageflyfish.com

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