Bauer Experience store in Burlington, MA

[jonesy9020 77]

Don't want to get too far into antitrust and consumer protection law on a page about a Bauer retail store on a non-issue, but in short, I'm not talking about race-, gender-, etc. based discrimination. This is about selling to similarly situated buyers (retailers) with different terms on how they can advertise or sell the gear. MAP is a watered down version of resale price maintenance. You can sell below that price, but at a base level, it makes it so that retailers can't truly compete for business in Bauer skates based on prices published online or in circulars. It seems that if Bauer made other retailers only advertise a certain minimum price, but allowed its own stores to advertise below that price, that would be unfair competition, and therefore a potential antitrust problem.

I think it would a price discrimination issue (Robinson-Patman, Clayton Act Sec. 3) done through a resale price maintenance scheme unevenly applied between different retailers. It's kind of hybrid-ish, so that's why I said a potential violation, but not super clear cut. In any case, they're not going to do it because it'd be bad for business, but it's interesting to think about.

FTC has a pretty good overview of this stuff. http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman

[jonesy9020 77]

Kinda curious, what are "net never" terms?

[chippa13 1844]

I would guess it is a play on "2 -10, net 30" which is a standard invoicing example of a 2% discount if you pay in 10 days and no discount between 10 and 30 days.

[JR Boucicaut 3759]

Right, but the smaller stores are usually in that net 90-120 range.

No big hockey retailer (giant, monkey, pure, total) is paying within 90 days. It's probably more on one year.

[2minRoughin 0]

It is interesting to see how this topic has had many different point and opinions. It demonstrates the passion that we all share for hockey, hockey gear and the hockey business in general.

Personally, I think the idea of a Bauer retail experience is fresh and cool. Will I check it out once it is open? Absolutely without a doubt, will I be making a purchase at the Bauer Retail store? Most likely and almost certain I will not. I assume that most of us who are on this forum or any other gear forum, we are pretty informed about the gear and a bit OCD about it. I am blessed to be living in a city where I have over 20+ LHS and big box within a 2-20min city drive. I am also blessed to have 30+ indoor and outdoor rinks within that same driving distance. I have access to any brands and anything any company has to offer pretty much and I have the choice to decide who I can and will purchase from. Sometime this may be cost driven due to competitive pricing. Most hockey players stick with the same gear until they absolutely have to replace it. Only the ones with money to burn and /or gear heads like us, plus parents who have kids in rep AAA hockey thinking that their kid will be a first round draft pick are more likely to update to the latest and greatest year to year. Your average hockey guy are not going to pay full retail and drop $899 on the latest skates, that same guy will more likely be buying for example the X100 which was on sale for $359 on sale. One, they are getting a great deal on a top end skate and they get it @ a great price. (Providing that it fits)

Sure, this Bauer news may ruffle some feathers among your local LHS and Big box, in the end will this really affect their businesses? In my opinion NO, they all need each other. Your local LHS provides a level of personal service that the big box lacks, they can earn the customer’s trust and sell the brand and the big box guys will just alter their buying strategies and smu’s. Bauer if ever stuck with lots of over stock because sell thru at their retail experience stores are lower than expected, they will need the big box to help move their inventory @ closeout.

Bauer and Bauer stores is a single brand entity. Consumer needs options, hence your LHS and big box will have the advantage, plus big box can offer deeper discounts for consumers who are cost conscious. Hope Bauer will do it right when training their staff on product knowledge. My opinion is that this retail experience have 2 general types of customers, first is the bauer gear fanatic who wears nothing but Bauer, the other is someone who have never experienced Bauer, in the second scenario if they messes up, most likely that person will not shop in that store again, then the after thought of that individual sharing that experience everywhere. Have anyone of you ever walked into a retail store when a sales associate ask you if you needed help? In the back of your head you are thinking no because you pretty much know what you are looking for and you’ve done your research, but you said yes anyway and then you regret saying yes because this advisor have absolutely no idea what they are talking about and is full of you know what but you are too polite to correct him or her.

I think that Bauer wants to think that they are Apple and / or Nike, but in reality they are not. They are a premium product in a niche market

Now back to my original question of “ Why Boston” I do know where Bauer USA headquarter is, my question is not demographic. I love the city of Boston and have visited many times. I go to Boston for a Bruins game, a Patriots game, lobster rolls, quincy market, the aquarium and the original boston cream pie at the Omni parker house. I don’t think I will be buying the 1x stick in Boston and bringing it home. I’ve read articles on cbc.ca etc and knows that hockey registration in organized hockey in Canada in general have flatlined and or declined in recent years. Whether this is due to cost rising and / or the diverse ethnicity in major metropolis, In my opinion I believe that hockey is still and will be Canada’s sport. Numbers in registration in organized hockey have dipped before, then it went up again. Hockey is year round, unlike many cities in the US where football and baseball takes presidents in spring summer and fall. The amount of Tournaments we have here in Toronto where teams from all over North America come to play and what they all do if time permits, is visit the Hockey Hall of Fame, So why not the Bauer Retail Experience? Also I know that every company under the sun has had demo days with a trailer. Not one that I know of offered try and Buy on the spot. Retail store on wheels not tied to a lease. It is just my opinion and 2 cents, more like 2 dollars.

[JGraz15 53]

Consequently, if adidas shuts down CCM, if the deal doesn't get done, then Bauer's gamble in doing this will be even more justified.

Just noticed your comment...has there been actual discussion/speculation that adidas would shut down CCM if the sale to a PE firm does not go through?

[JR Boucicaut 3759]

Weak CAD?

[chippa13 1844]

2Min, the other answer for "Why Boston?", because there is an awful lot of hockey in a concentrated area here in New England. Couple that with the fact that it will be in the headquarters backyard and it is a no-brainer for one of the first locations.

[Oli1804 3]

Just noticed your comment...has there been actual discussion/speculation that adidas would shut down CCM if the sale to a PE firm does not go through?

From what I read, it's not true, but I could be wrong.

With Reebok Hockey being moved over to CCM, I think Adidas will sell the part that's more Crossfit and stuff like that, and they will keep CCM Hockey. It's their entry door in the NHL after all.

[Stewie 721]

From what I read, it's not true, but I could be wrong.

With Reebok Hockey being moved over to CCM, I think Adidas will sell the part that's more Crossfit and stuff like that, and they will keep CCM Hockey. It's their entry door in the NHL after all.

with how crossfit is booming, and the margins they can make in that field, it would be silly for adidas to sell reebok crossfit portion.

[chippa13 1844]

From what I've heard, Crossfit is the only part of Reebok that will survive all of the changes going on.

[JR Boucicaut 3759]

with how crossfit is booming, and the margins they can make in that field, it would be silly for adidas to sell reebok crossfit portion.

http://www.reuters.com/article/2014/10/20/adidas-reebok-jynwelcapital-idUSL2N0SF00120141020

From what I read, it's not true, but I could be wrong.

With Reebok Hockey being moved over to CCM, I think Adidas will sell the part that's more Crossfit and stuff like that, and they will keep CCM Hockey. It's their entry door in the NHL after all.

The post above contradicts your thought.

[Stewie 721]

It'd still be a bad move, but maybe this is driving it off topic. They would be creating a competitor too since adidas shoes are also popular in crossfit. Or course they would be approached, who wouldn't want to be in on the crossfit action, reebok name gets all kinds of promotion on crossfit and obstacle type mud runs both of which continue to grow in popularity and are making their way to TV.

[bthompson1286 5]

I know its not an apples to apples comparison, but Nike has a retail "Nike Store" in downtown Toronto. It doesn't seem to have had any tangible effect on the Sportcheks of the market. I still see tons of Nike merch sold elsewhere. Food for thought.

nike stores have been around for years, nothing new

[boo10 323]

nike stores have been around for years, nothing new

My point exactly. They haven't put anyone out of business.

[Chadd 916]

Weak CAD?

It is down to 83 cents on the US dollar. While it isn't weak for those of us that recall it being 60 cents on the dollar, it is a significant retraction from when it was on par not all that long ago. The NHL is also concerned with the relative strength of the US dollar versus the Canadian dollar.

[IPv6Freely 2083]

On the bright side my student loans are being paid off 17% quicker :P

[Jordan 13]

Sony is closing all of their Canadian stores as is Target....you just never know how things will turn out.

[mcne0101 16]

I wonder if the Bauer experience store will match the lower stick prices in the Minneapolis market. If not, I wonder what they will do about all of the retailers around them selling their sticks for $40-50 less than MAP.

[JR Boucicaut 3759]

I wonder if the Bauer experience store will match the lower stick prices in the Minneapolis market. If not, I wonder what they will do about all of the retailers around them selling their sticks for $40-50 less than MAP.

You stop the one retailer, then the rest will follow suit.

[mcne0101 16]

They're isn't a problem in selling below MAP, or even $1 over cost. You just can't advertise it.

I know, one retailer has driven the prices down in the Minneapolis market to about $30-50 below MAP. I'm curious how Bauer's experience center will react if at all. It would be strange if Bauer was selling all of their sticks for $50 more than the surrounding retail shops.

If i was a retailer i would want marginally lower prices on Bauer sticks at my stores, it would be the only advantage I had.

[JR Boucicaut 3759]

They're isn't a problem in selling below MAP, or even $1 over cost. You just can't advertise it.

Right. They aren't breaking any rules as it's not advertised. I always have to make sure to check the price tag whenever I get a stick transferred in from MSP.

[chippa13 1844]

Location has something to do with it. If people want a Bauer stick and there is a store 5 minutes down the road selling Bauer sticks at the same price as the Bauer store 30 miles down the road then they aren't going to drive the extra 25 miles for nothing.

[Chadd 916]

Location has something to do with it. If people want a Bauer stick and there is a store 5 minutes down the road selling Bauer sticks at the same price as the Bauer store 30 miles down the road then they aren't going to drive the extra 25 miles for nothing.

Some people will likely do it, and much of it is a generational thing.

[IPv6Freely 2083]

Location has something to do with it. If people want a Bauer stick and there is a store 5 minutes down the road selling Bauer sticks at the same price as the Bauer store 30 miles down the road then they aren't going to drive the extra 25 miles for nothing.

Definitely agree, and I guess that's once nice advantage to MAP (and similar things in other industries where prices are fixed), the price becomes an irrelevant part of the equation. At that point its things like distance, selection (which obviously the Bauer store won't ever be able to match on), and service.

The only people I can see being really into a Bauer-only store are those who are head to toe in Bauer because "that's what all the cool kids wear" or "dopesick cellyflow" or whatever it is the kids are saying these days.