vhhockey

Hi All, I thought that I would post on here to see if I could clear up some questions/information. We generally do not post, but every now and again I look through the forums - it gives me some perspective on what is going on in the industry, and what some passionate skaters think about our products, and the good products offered by many other companies. Here is some perspective on our company. We are small (7 people right now). We are manufacturing in North America. We have customers all over the world - including skaters in the very best leagues in the world. We like to think that our product is unique, and that it is a product that has helped many hundreds of skaters. At the premium price point that we value the product at, we will not be for everyone. We are continuing to strive to do things better - all while meeting demand - and trying to do so in a way that will allow the company to grow, thrive, and be around for the long haul. We are not in "big company territory" yet Having said that, we are not in the position to be currency "hedgers". For the majority of VH Hockey lifespan over the past 2 1/2 years or so, the Canadian dollar and the US dollar have pretty much been at par. Since the New Year, we have seen a spread in the currencies. This has significantly impacted our business model and fundamentals, as all of our material costs are in US Dollars. A relatively simple way for us to conduct business is to invoice customers in the currency to where the items are being shipped. Because we are located in Canada, for Canadian customers we are obligated to charge PST and GST (generally 13-15%), plus a shipping and handling charge. For customers that we are shipping to in the US, we do not charge a sales tax, and currently because we are making a better margin on US orders - we are not charging for shipping and handling. International orders are done in US dollars. Because we cannot take advantage of currency hedging or volume materials purchasing - this is a relatively simple way for us to operate without having to have a complex understanding or model for currency fluctuation. Any of our US Authorized Dealers that carry any type of stock or place orders do so in US currency. Many folks feel a need to post their business dealings and correspondence with us verbatim in this forum, and for sure, that is your prerogative. I offer this post only to clarify. We will make some mistakes during our business tenure, and we will do some great things. I am sorry that some of you feel that this is an extremely negative development. However, we have never produced more skates than we are now, and we are grateful for all feedback - positive or negative - as we believe that we continue to make an extremely high end skating product for both speedskating and hockey. As for pros that are wearing the skates, I admit that we often find out about who is wearing them from you before we actually know There are many players that are trying the skates, and we fully expect some players to go on or off of the product. To my knowledge, we are the only company that does not pay anyone to wear the product. Thanks for contributing, I enjoy reading when I get the chance. Garth Smith Vice President, Sales & Marketing VH Footwear Inc. (Hockey Division)