Hockey Shop Business

[awall 0]

I just getting into hockey by working my way thorugh the local rink's skate school and have been in the process of picking up my pads here and there at my local shop. Well the time has come and I am just about ready to pick up my last piece of equipment and I got to thinking. I have spent close to $700 on hockey equipment and lessons and after I finish my big investment in pads I don't expect to be spending quite as much at my local shop any more. I know most shops aren't actually rolling in dough but they have to be making some profit or they couldn't remain in business. So my big quesiton is what keeps a shop in business in the long run? I was jocking around with the owner of my local shop and he was saying, "Don't worry you'll still be spending money here once you start breaking sticks." Are sticks really such a high profit item for stores?

Now I don't want any details I'm just farming about in generalizaiton land but I must admit I'm kinda curious. If anyone in the know would be interesting in either posting here or e-mailing me I would appreciate it. I don't mean to be asking personal questions and such and don't want to know trade secrets and stuff, I'm just curious as to what life is like as an owner of a hockey shop.

[Chadd 916]

Sharpenings, wax, mouthguards and tape are probably the best for me.

[awall 0]

Interesting I never thought of the small ticket items adding up that much, but now that you mention it if you sell enough of them to many players...

[Eazy_b97 1]

Everyone basically needs those. With the sharpening there's isn't as much of a cost factor really, you pay for the equipment and training and the rest is profit. All you have to buy are stones and new wheels from then on in.

[Tricky4L 0]

I learned this the first day I got a job at my LHS... the price they buy at and the price that an item is sold at is pretty damn wide. But I won't be a total jerk and say the percentage.

[Chadd 916]

I learned this the first day I got a job at my LHS... the price they buy at and the price that an item is sold at is pretty damn wide. But I won't be a total jerk and say the percentage.

You're kidding right? The margins in hockey are worse than any other retail business I've ever seen. The more expensive something is, the lower the percentage of profit.

[blues_91 0]

My local rink shop doesn't seem to be doing to good :( . Almost all their sticks now are pro-stock, they pick up older models of gloves (they still have a few eagles left), and half their blade rack are also pro stocks. My dad was talking to the guy and he admitted that bussiness(sp?) wasn't going that good. I really hope they don't have to close they're really nice guys working over there(give out free butt ends for shafts and free sharpenings if it's an emergency or if they just don't feel like charging you).

[JR Boucicaut 3805]

Tricky...it must be your shop. Unfortunately some shops try to get as much as they can. You have to factor in shipping as well, especially on sticks and such. Sticks and skates have the lowest margin.

The items that do well are the small things - sharpenings, knit skating gloves, mouthguards, stuff like that. With high-volume online stores, stores have to keep prices respectable, hence, don't make as much.

[Tricky4L 0]

To be fair in this argument, I can't say that our shop has the most competitive prices around and I can't compare with other sports as I lack the experience but our margin is just around a perponderance.

[Tricky4L 0]

Tricky...it must be your shop.  Unfortunately some shops try to get as much as they can.  You have to factor in shipping as well, especially on sticks and such.  Sticks and skates have the lowest margin.

The items that do well are the small things - sharpenings, knit skating gloves, mouthguards, stuff like that.  With high-volume online stores, stores have to keep prices respectable, hence, don't make as much.

To also add, we are the best stocked shop within the three states our local hockey association plays in so in many cases, kids can convince their parents to buy something because it's the first time they've seen it rather than worry about the price.

I should say thats it's not as though we price gouge... and I have no say in the priceing of any item.

[JR Boucicaut 3805]

In your defense, some stores don't have a choice. They don't buy much so their buying levels are really low. Unfortunately there are some that just want to get as much as they can.

[Tricky4L 0]

In your defense, some stores don't have a choice. They don't buy much so their buying levels are really low. Unfortunately there are some that just want to get as much as they can.

This is also why many shops in the area have gone down as skid marks within the last 4 years.

[Chadd 916]

When you posted, I started running a report on sales in my shop. This is my top three based on items sold, not profit.

Sharpening 26%

Clear Tape 9%

Black tape 8.4%

Add up all the tape and sharpenings and it's about 60-65% of the total sales volume.

[awall 0]

When you posted, I started running a report on sales in my shop. This is my top three based on items sold, not profit.

Sharpening 26%

Clear Tape 9%

Black tape 8.4%

Add up all the tape and sharpenings and it's about 60-65% of the total sales volume.

Thanks for posting that, I didn't mean to put anyone through more work, but I really appreciate your willingness to do that. This thread has been highly educational and I can't begin to tell you how much I appreciate your willingness to share what things are like on the other side of the counter.

[JR Boucicaut 3805]

In your defense, some stores don't have a choice.  They don't buy much so their buying levels are really low.  Unfortunately there are some that just want to get as much as they can.

This is also why many shops in the area have gone down as skid marks within the last 4 years.

Agreed. There was a competitor in Orlando about 3 years ago. He couldn't keep up and had old stock that he was still trying to get MSRP for. As far as I know, he's been closed for two years and he still has his stock as he didn't want to budge on his prices.

[iceholes 0]

sharpenings: our LHS went from $5 - $6 this January.. I dont have a problem with that...is this in range with other shops??

Tape..well I buy it by the case to avoid the $3.50 a roll at the shop/...

My LHS has equipment a bit more than online shops, so tax vs shipping are generally a wash.

I alternate purchases from online and the LHS to make sure I am seen and heard with the $$$ and not just for sharpenings(I also go off hours for sharpenings to get a good one..lol). And My miracle stone stretches that out now as well...

BUt today I was there...Buddy with me wanted to try an Itech grille/shield combo.. sticker said $79, he said $66 would buy it. He hemmed and hawed, went online and found it for less...

not sure my point here, but its hard to be a LHS with all the online shops... Also, the sales and closeouts are lacking at the LHS ...synergy grips are still $160, yellows 150 for example...

but..a LHS in not something I could live without.

great thread

[Eazy_b97 1]

Just to chime in on Trickys comments. The store I work at is very small, primarily sharpening and accessories, but we do order anything a customer wants. We generally sell OPS at $20 above cost, and I'm not too sure on skates.

[jimmy 194]

This is a very good thread. I will say, if customers continue to ditch LHS's for internet sites, the LHS's will dry up and go away, as many do. As said, our margins are not very high. On accessories, yes, but on hockey equipment, absolutely not. Perhaps 20% on average After expenses; rent, utilities, advertising, taxes, insurance, shipping, etc, the final profit on equipment is even less than that, really not enough to sustain a store and make a profit. Everybody thinks that just because we buy an item for $50 and mark it up to $75, that we made $25. NOT even close. It cost a lot to run a retail business. Heck, I pay nearly $200 a month for phone lines alone. If it weren't for sharpening, services and accessories, we couldn't make it. Remember, we can't have too high prices, because the customer will go to ihaveahockeybusinessoutofmygarage.com to get their stuff.

We also get screwed by the equipment manufacturers. We commit and buy a large selection of equipment to have in stock, take loans, pay interest, just to have the company (cough, cough, Bauer) discontinue models after less than 1 year on the market. Now if we have any of this equipment in stock when they discontinue the model (or word leaks out the model is discontinued on a "better model (XXX) is coming out), everything left in stock becomes virtually worthless. To top it off, the companies dump all their remaining inventories to a few big internet sites for pennies on the dollar, and these guys sell it for much less than we bought it for. So, every piece we have in stock must be sold at a loss. So all the profit we made during the year on a particular model, is thenloffset by the losses on the models we have left in inventory. For example I have 60 pairs of discontinued Bauer skates in stock. I will make ZERO profit on these, and will likely take a big loss on each pair. The profit on my last 60 pairs sold is GONE! One quick swoop. I'm thinking this coming year to not keep in stock more than 1 of each Bauer product. I just can't trust them anymore. Easton is just as bad.

Skate sharpening is our biggest profit area. Still, I have to sharpen 1000+ skates per month JUST to pay my bills and break even. If I didn't love this job and work hard every day to make it work, I certainly could make more money scooping ice cream. I'm not exagerating

[sonplaysipay 0]

Jimmy, are you in the Dallas area? If so, where.

[Tricky4L 0]

With the exception of shrapenings and skate repairs, online retailers can fulfill the orders of a customer for a much lower price and still within a timely manner than any LHS I've ever been to.

I've heard the term "newbie ignorance" used now and again and I think that it works quite well as in getting the kids that are just starting up and buy everything at the LHS because of the lack of knowledge of online retailers and these "newbies" are a (dare I say it) revenue source to many LHS. So with this I rise another moral question... If a person comes up to you (assuming you work at a shop) and asks if there are any other places to buy equipment, do you say "well we can order anything you want for you" or do you tell them about the wide range of online shops and potentially lose a would-be consistant customer? IMO it's a lose lose situation but how bout it?

[JR Boucicaut 3805]

If you can order what they need, it's the same as them getting it online.

[Eazy_b97 1]

Being in Canada, on-line retailers aren't a threat, but we offer to order it and tell of other stores that may have what they are looking for. You're hoping your customers are loyal enough to wait for you, and also know that you'll be there when they need you for a quick skate repair, or helmet fix before a game when an on-line retailer is not.

[prenny207 1]

online stores and catalog ordering started for a great reason... to help out the consumer that had no LHS. it has since become a place for closeouts and the other situations like jimmy mentioned.

some have stated the most important fact, but i don't think it has been realized and supported... without your local hockey shop, where will you get your tape when you realize you are out, or your skates sharpened... or you break a both your sticks during a game...

i have said this before, and i will say it again "SUPPORT YOUR LHS, OR YOU WON'T HAVE A LHS TO GO TO IN A PINCH"

[Chadd 916]

It's getting harder to operate a shop that isn't located in a rink, at least in the US.

[Jbone 0]

I think it's just how much money they make on raiing the price of what the products are worth, a guy at my LHS said they buy T-blades for around $13 and sell them for $22.