Archery Business: Jul/Aug 2010
July/August 2010 archeryBUSINESS 25 uct selection, combined with "over the top" quality service, has proven to keep the "word of mouth" flowingand the local perception that the shop is a "can't-miss" stop. Griswold Archery is a prime example, especially with a large farm supply store right down the street that sports a hefty, though rather low-end, sporting goods section. "We carry some of the necessities like game calls, some clothing and all the archery acces- sories to out\037t a bow," Griswold says. "But with a large Farm and Fleet store located just min- utes away we have to worry more about service and doing the job right. If customers need spe-cialized items, we have those as wellwhereas they might not \037nd those in a large outlet." Black Hills Archery has a similar philosophy, but mimics some of the "super store" market- ing techniquessuch as providing bow pack- ages. Customer-service surveys completed in popular tourism resorts to major shopping malls reveal customers like the simplicity of packages. It's simply a less-intimidating pur -chase, and the price is right in front of them. There are no surprises. "Customers can be intimidated by looking at a blank bow without the accessories. They think, 'What's it all going to cost?'" relates Kraus. "Our packages include everything but the mechanical releaseand customers can shop for high-end and low-end packages. I ask them if they have a dollar amount in mind and then point them to several package deals for a test-run in our shooting lane." Although Kraus does offer low-end pack-ages, most of his accessory inventory centers on higher-quality products because that's the majority of his business. He leaves the bulk of the lower-priced products for the superstores to sell, keeping just enough in stock to help out bowhunters on a tight budget. MORE PURCHASING POWERYou'd probably think that small shops can't compete with the giant retail outlets on price. There's some truth in that statement, but every- thing doesn't have to be "apples to oranges" be- tween small and large stores. M any small shops use conglomerate purchasing power to keep their costs in line with the costs mega-retailers pay for inventory. One buying group Kraus has found especially helpful is the Archery R ange and R etailers Organization (A RR O). According to the organization, they are the nation's largest archery buying group. By purchasing inventory as a group of shops, most prices are competi- tive with larger chain stores. S ince Kraus also has a Cabela's and a S cheels within minutes of his store, he knows his customers are shopping prices, especially for many accessories and other hunting prod- ucts. Kraus has responded in kind; he routinely uses a Cabela's catalog for pricing. In many but not all cases, Black Hills can match the big box prices. However, when a customer questions a higher price, Kraus simply opens his retailer price guide and clearly shows the customer his cost and the mark-up. In many cases, this "open book" honesty results in a sale. Lee is also very conscious of pricing. And even though his near -est major competitor is nearly two hours away, Rocky Mountain still matches prices, especially on top-selling products. "We're a couple hours from our superstore competition, but customers still shop there, and so we have to be aware of the price they can get there and online," explains Lee. "On main items like Rage or G5 broadheads, we have to be com-petitive or we won't make any money." The economy has already begun to turn around, but bad or good, your shop needs to be a "can't-miss" destination to thriveor even survive. Include some of the forementioned ele- ments into your business plan and you may just wind up the talk of the town. CONTACT INFORMATIONArchery Range and Retailers Organization (ARRO) www.archeryretailers.com 018-025_AB10JUL-cantmiss.indd 25 6/8/10 10:13:39 AM
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