Sage One at costco...

Discussion in 'Fly Fishing Forum' started by WA-Fly, Jun 28, 2013.

  1. underachiever

    underachiever !

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    Not to mention that some people might value the idea that Sage is made in their backyard. I fish all kinds of rods (all purchased used) made all over the world primarily because of my budget (or lack of it). I recognize one of the key reasons foreign rods are so affordable is the labor is a fraction of US labor.

    Old Man, if you've got children or grandchildren I'm sure you'd hope they never have to compete with a foreign workforce that would do the same work for a fraction of the price. I know I hope I never do.
     
  2. DanielOcean

    DanielOcean Steelhead Virgin

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    The decision whether an expensive rod is worth it is clearly up the individual. Each person has there own idea of what they consider value. The problem is that people who are just fine with the lower cost rods like to shove there values down others that do not share the same value. For example, I have an old bamboo rod that sits in its case, in which I guarantee is more valuable than all of the forums rods combined. I say that because it was my fathers which has sentimental value. This is another form of value that often gets missed. So with that said a persons interpretation on value can be way different than the others. People seem to miss that. I am an amateur caster and I can tell you that I want to own a Sage one day just because of that second type of cool.
     
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  3. JesseC

    JesseC Active Member

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    I think we're on the same page... pretty close anyhow.

    I think it's bizzare that Sage hasn't nipped the problem in the ass. Like I mentioned, they ought to be able to identify the issue by tracking the serial numbers. I also think it's bizzare that this keeps happening to rods that are close to being discontinued. The ONE is more of a surprise to me.

    I also think it's bizzare that Costco continues to buy product from slimy distributors. They're a big company and I wouldn't think they'd be into this. But, they've been doing it for a long long time. I remember about 8 years ago they bought a couple hundred Cannondale mountain bikes and sold them for hundreds less than the specialty bike shops. Cannondale tracked down the problem and refused to honor warranties on any of the bikes.

    In summary, neither of us has enough information to come to a complete conclusion or really point a finger. Sage better get it's supply chain under control and Costco..... well.... they'll continue buying tiffany rings, fly rods, and I'm sure anything else they can churn a profit on. It's worked really well for them, they're a local company, and I can't say I blame them one bit.
     
  4. Porter

    Porter Active Member

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    Reminder.....

    For the fly shop owner, there are threats coming from all different angles at any given time. They come from increased prices from suppliers, new competition down the street, big boxes building the mega-complex across town, and now from (would you believe) wholesale discounters, namely Costco.
    Since March 26, 2011, sixteen Costco locations in the west have been identified as stocking and heavily discounting selected Simms and Sage products. The products appear to be limited to three varying models of popular Sage Z-Axis fly rod and Simms G4 Pro Stockingfoot waders. The knee-jerk reaction Is to wonder if Simms and Sage sold direct to Costco. But, in the words of ESPN College Game Day commentator Lee Corso, “Not so fast, my friends.” It turns out that neither company sold anything to Costco. In fact, they appear to have been victimized.
    In an exclusive phone interview for this article, Marc Bale, long-time director of sales for Sage/Farbank Enterprises, stated: “We are aware of the products impacted and the Costco stores participating in selling our goods. It is factual to say that we have pinpointed the issue with a freight-forwarder that transferred the goods to Costco. The freight-forwarder has since gone AWOL. We continue to investigate.” According to Mr. Bale, Sage did not sell direct to Costco, nor had any plans to do so. It appears the vigilante freight forwarder double-crossed Sage without their permission.
    Angling Trade also interviewed Diane Bristol, director of marketing and brand management for Simms Fishing Products, and she explained that Simms learned of the issue on March 24, sent an E-blast advisory to its dealers soon thereafter, and then bought the waders from the various Costco locations at full retail price. Ms. Bristol said that Simms had identified the source of distribution to Costco, and while she opted not to give a specific identity at this time, she assured us that Simms had shut down that account. “If you are not an authorized Simms dealer, you do not carry Simms products, no matter who you are. This is an issue we take very seriously,” she said.
    The two scenarios in which Costco procured Simms and Sage inventory for their stores appears as two distinct and separate events. The same players are probably not involved in both sets of transactions – in one case, an AWOL freight forwarder played dirty poker, and in the other, an industry insider acted as a Costco pawn. But behind the scenes is apparently a more crooked and sinister player – Costco. This situation does beg a closer look at Costco’s seemingly unethical purchasing methods.
    Costco has played this hand before. The pattern: they target hot ticket items and ask the manufacturer to buy direct (with a clear message they will deep discount the item). If the manufacturer denies selling to Costco, then Costco seeks and buys sizeable inventory from third parties – dealers or shipping agents at wholesale prices, legally. The practice is called “diversion purchasing.” Richard Galanti, Costco executive vice-president and chief financial officer estimates 4 percent of the goods in Costco are diverted. Manufacturers and retailers beg to differ – claiming up to 12 percent is more realistic. The under-handed purchasing tactic may be legal, but is certainly strays far from being ethical. Just ask the myriad of companies bit by the Costco bug over the past 10 years: Packasport Car-top Carriers, Camelbak, Crocs, Janzen, Hurley, Lucky, OshKosh, Rollerblade, NordicTrack, Cannondale, Columbia Sportswear, Oakley, Rossignol, Teva and Trek have complained about the practice in the past, with several unsuccessful lawsuits. The list goes on and on. There are too many accounts and complaints on the web to cite – just google “costco diversion” and read to your heart’s content.
    The bottom line is this purchasing practice is not new and it won’t go away until legal precedence deems diversion purchasing illegal. Don’t expect that to come anytime soon. It will take more than just the fly fishing industry to implement corrective action. In the meantime, awareness and unity are the best weapons to fight unethical purchasing practices. Simms and Sage are both correcting their value chain to build in stop-gap measures to fend-off and alert them of future guerrilla purchasing by the likes of Costco and others. The fly shop owner plays a critical part of that value chain alert system to industry VIPs like Sage and Simms of future diversion purchases. Be alert, be ethical and do your part in communicating suspicious activity.
    The industry has just been preyed upon and we’ve walked away with just a scratch or two… and maybe a whole new education on how to fight off retail gorillas like Costco.
     
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  5. Porter

    Porter Active Member

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    Now if Sage, Simms, G.Loomis and whoever else is scammed and has to invest money and time in to detective work, more money in to placing a security shipping system that prevents these type of actions, and/or buys back there items at full retail.... I want to know who pays? ;) Think! Is the Costco method actually raising the price of these goods? Hmm. :mad:
     
  6. _WW_

    _WW_ Fishes with Wolves

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    So...did you just "divert" someone's article?
    Where could one read it? Who wrote it?
     
  7. Old Man

    Old Man Just an Old Man

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    I worked at Boeing for over 38 years. You don't think that they outsourced their work to Foreign country's. You bet your sweet ass they did. The things that help keep the cargo's stay somewhat warm were outsourced to Mexico. They were made very cheaply. They were called Blankets.

    I also know that parts of the body were made in Japan and some things were made in Korea. The newest plane, lots of parts are made overseas.

    They might be good parts but they took manufacturing away from America. Boeing used to build the whole A/P now they just fit the parts together.
     
  8. Old Man

    Old Man Just an Old Man

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    You might be right.
     
  9. freestoneangler

    freestoneangler Not to be confused with Freestone

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    Well, you certainly won't be receiving an invitation to the "Occupy Costco" rally ;)
     
  10. Brady Burmeister

    Brady Burmeister Active Member

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    In the famous words of our former president - "There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again."

    Maybe I'm an idiot or simplifying things too much, but I wouldn't expect it to be too difficult for Sage to have a purchase contract that holds the buyer(wholesaler) accountable for distribution to, let's say, Costco.
     
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  11. PT

    PT Physhicist

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    Maybe, but probably not. Just trying my hardest to derail another thread. :)
     
  12. dflett68

    dflett68 Active Member

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    i think we are pretty close too. i believe strongly that the market should determine what something is worth - even if the market is composed of suckers (which i'm not saying it is in this case). i don't think a manufacturer who gets burned by a distributor should settle things by making the consumer pay by voiding their warranty, but i guess that's their way of making costco/distributor pay. probably effective. i will say this: if i want a good fly rod, i would look to sage rather than costco. but if i want business savvy, i would look to costco rather than sage. and i appreciate both. i also appreciate the local fly shop, but i expect them to man up and know the market they are in and compete accordingly and not blame their competition or their customer when the market place feels like thunderdome.
     
  13. Porter

    Porter Active Member

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  14. Steve Unwin

    Steve Unwin Active Member

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    I also think it seems unfair to void the warranty. Sage didn't sell these rods for anything less than what they are worth (to Sage) so they have already made their profit. What the consumer pays is irrelevant to the warranty, in my opinion. And while most people on here are sensitive to this issue, the broader population may have no idea that Sage is supposed to be sold only by "Authorized Dealers". By not honoring warranties on goods bought at Costco, Sage would certainly run the risk of alienating their customers who made no mistake other than not knowing the provenance of the goods.
     
  15. McNasty

    McNasty Canyon Lurker

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    i saw the sage approach outfits in the yakima costco as well. if i remember right, about $80 cheaper than normal. only 1 left when i went the other day.