Here is a quick fact for you: Other than HockeyTron, no manufacturer in the Hockey Equipment industry sells
directly to the customer. In every other industry, manufacturers jump
at the opportunity to serve their consumers directly. Companies like
Nike, Reebok, and Proctor and Gamble sell many of the products they
produce directly to their consumers via their respective websites.
This
sales method is causing great concern amongst wholesale and retail
companies alike. Up until recently, manufacturers wouldn't compete with
their retail customers.
What
has completely changed the face of the game is the internet. The
retailers do very little work and spend so few dollars on buildings and
employees but reap all the benefits of selling products to customers
online all over the world.
Online
retailers also cause havoc in the retail marketplace by undercutting
traditional retail stores and by being able to show an impressive amount
of products than what would
traditionally be available. It is difficult to see the size of an
online retailer when all you're looking at is a computer screen. They
could potentially not have a single thing! They could just be
drop-shipping orders directly or be running an online business out of
their own home with virtually 0 expenses. The economy being what it is,
even manufacturers are starting to feel the pressure of reaching profitable margins. That is why they are starting to take aim at the online marketplace, effectively cutting out the internet business from online retailers.
Hockey
manufacturers are going to wake up and smell the coffee one day. They
will say to themselves "Why DON'T we just lower the retail prices
of our items and sell direct to the consumer?" The facts are simple:
Online retailers take the majority of the inventory away from the
manufacturer and tend to go out of business if they are not able to heavily discount and in turn destroy
the brands they are selling. In other industries, the manufacturers
are beginning to realize that they don't need a middle-man retail store
to validate their products: The products can speak for themselves now.
The internet has allowed manufacturers to sell directly to the consumer
without opening expensive stores and most importantly, without
suffering distribution markups. This is single-handedly the biggest difference maker from years past: Manufacturers are building direct relationships with
customers, offering them products at prices thought to be unimaginable
before this time. The manufacturer wins, but more importantly, the
customer wins. That's why HockeyTron is proud to be the first manufacturer to sell directly to consumers in the hockey industry, and why we have seen so much success in our first year and a half of business.
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