Costco & Sage

Discussion in 'Fly Fishing Forum' started by Nathan B, Apr 20, 2013.

  1. Kent Lufkin

    Kent Lufkin Remember when you could remember everything?

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    Close Lugan, close. I actually started flyfishing in 1883!

    K
     
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  2. Derek Dahms

    Derek Dahms Member

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    Being new to fly fishing, I never wanted to deal with the people in fly shops, 90 % of them were jerks . That stopped me from getting into the sport for at least 20 years. As most of you know I have been mentored for the last two years from Mark Kraniger another member of this site. People like Mark should take the credit for getting people into this sport, not fly shops .I started out with low end rods , because that's all I could afford! I have 3 rods now all of them bought off E-Bay , last one being a nice Sage for $ 265 bucks. Am I supposed to feel bad that I didn't buy it from a authorized dealer? I don't think so ! If I can get a sweet deal on a high end rod , I'm doing it. And yeah it should have
    A warranty ! The amount of you spend on a rod doesn't make you a great fly fisherman ! All the fly shops I've been in don't give a rats ass about people ,so why am I obligated to buy from them ??? So , I have to go ! Headed to Costco !!
     
  3. tythetier

    tythetier Fish Slayer

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  4. tythetier

    tythetier Fish Slayer

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    no idea what I did with that ^^^
    Maybe some body from a small computer store could help me out.... Proly not, I am a cheap ass that bought a Asus laptop, and my work computer is an HP....
    Sorry... it is early...
     
  5. Kim McDonald

    Kim McDonald member

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    The environmentalist in me has to ask why it is Sage and Simms and or any other outdoor company for that matter (hello, Patagonia) is making so much inventory that they have excess. I get the "storing" a number of rods and waders for warranty issues, but the number of rods that clearly are excess and are being dumped on the market, either because of some "middleman" or directly through Costco....

    Do Sage and Simms not have a good sense on inventory?

    I remember in the early 1990s, Patagonia was rapidly expanding both retail outlets and it's clothing line (more colors of a Snap-T, what's not to like?). The economy crashed and they were in a world of financial hurt, with the added issue of litigation over a Black Diamond carabiner or a climbing harness that allegedly malfunctioned. Chouinard spun off Black Diamond and put it into bankruptcy, selling it back to the employees, and doubled down on Patagonia, reeling in the clothing line for awhile. They got much much better at inventory control.

    So, are these Sage rods a victim of the bad economy, with Sage thinking it was going to sell more?

    Kim
     
  6. The Dude

    The Dude Member

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    See Travis's comments below. FYI, Travis is the CEO of Farbank the parent company of Sage.
     
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  7. The Dude

    The Dude Member

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    I just got this back from Travis and he approved it to be released to yall.

    Hi Marc,

    Thanks for the note and the heads up that this discussion is taking place.
    I’m scrambling to get out the door for a board meeting but the short answer
    is that Costco is not an authorized retailer for Sage and this current
    situation is very similar to the scenario from a couple years ago where
    Costco acquired inventory on the grey market via one of our international
    distributors (I should say now former distributor). As we did last time,
    we’ve plugged the leak in our distribution but Costco appears to be very
    aggressive in trying to acquire our inventory through unauthorized
    channels. From what we can gather at the moment there is not that much
    inventory in Costco and it is concentrated in our Approach Outfits.

    For the record, we sell the overwhelming majority of Sage product to
    specialty fly shops because that is where we believe the sport of fly
    fishing best thrives and where consumers get the best service and support
    of our products.

    All the best,

    Travis
     
  8. Cruik

    Cruik Active Member

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    I always thought that big box stores didn't sell high end goods because they don't have the shelf space or the time to sit on that type of inventory, while boutiques do (at a higher profit margin, naturally). Now to hear it from some of you, that's not exactly the whole reason? Those high end goods don't make it into big box stores because boutiques put pressure on the manufacturer with whom those boutiques have some sort of a special or personal relationship and the manufacturer responds by keeping the MAP high (thereby ruining the profit margin that big box stores need to keep the inventory moving), selling to only authorized dealers, or outright buying the goods back from the big box store?

    Now, I know Sage doesn't just respond to the pressure from fly shops, it has its own reasons for wanting to keep the goods out of Costco: products being sold at Costco show the consumer that the products are mass produced and are not the work of an elite manufacturer. But seriously, doesn't some of this smell like anti-competition? Don't get me wrong, I'm all for visiting local fly shops where I can ask the guy working behind the counter who has casted every rod in the business.
     
  9. JesseC

    JesseC Active Member

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    I worked in retail for a couple months on a consulting project. It was AMAZING to see how many resellers are out there. Many of them buy massive quantities of product to import into other countries. Others buy in volume and then resell through local distribution channels.

    During one product release 50% of our inventory was gobbled up by resellers. They would have teams of 20 people coming in with credit cards to get the inventory they needed - blew my mind.
     
  10. GAT

    GAT Dumbfounded

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    I thought this happened once before and it was an international distributor who sold out to Costco. Guess I was correct.

    Costco must lust after certain products.
     
  11. The Dude

    The Dude Member

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    No doubt about it, they want name brand items on the floor to get people back in the store looking for deals. The more times they can get you in tota store to look, the better their odds are that you will buy something.
     

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