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Increase Profits in Your Outfitting Business
Retail sales and Strategic Alliances

By Tim Warren

Do you ever notice that often your clients show up for their trip wearing a souvenir tee shirt from a previous adventure? Sometimes a competitors shirt? Or, how about all the little items the guest forget that was on your pre-departure list you sent? Let's look at how you can use a little of that extra space to sell items with low initial investment to increase profits.

With profit margins of 40% -100%, compared to 5% net profit from operations for many outfitters; retail products sales and rental is smart business. Your clients want these products, (or forgot them). Lets' give it to them!

Successful outfitters and destinations know that retail product sales, rentals and strategic alliances can increase profits, enhances guests sense of value and even promote new business.

Your destination and guiding services create fun, relaxation and memories long after the trip. Providing items to sell gives your guests something tangible to take home and to show-off to their friends.


In this article you will learn how-to profitably:

  • Start and improve your retail sales operation.
  • New trends in products that are easy to sell.
  • How merchandising and promotion can guarantee increased income.
  • Strategic alliance success stories.
  • Tim's' guerrilla secrets for promoting your business using wearable.

Setting up your shop
Steven Covey, Author of "Seven Habits of Highly Effective People" states, "Begin with the end results in mind". In operating your retail sales, you should always ask yourself the following questions.

1) Will this produce profit?
2) Does it enhance value to your guests?
3) What do your customers want?

Let's look at where you start, considerations in selecting a supplier and what items should you sell or rent.

You don't have to spend a lot of time or money to start and run your retail operation. Some suppliers can set you up with as little as a three dozen shirt minimum and deliver in less then a week. A little bit of effort goes a long way. Don't do a half ass job. Make a commitment to be in the retail business. The most important thing is that your guests know you have products and have ample opportunities to purchase them.

Make sure your store or sales area is centrally located. Many river rafting companies pick-up and drop off guest in front of the camp store. California based Adventure Connections bus driver staffs the store, giving the driver more hours and freeing up the guides to do what they do best; guide. If you don't have the space or resources to create a special building, portable display racks from wood lattice are inexpensive and can be used outdoors. Your sales rep or supplier should be able to offer additional advice.

Choosing a Vendor
Corky Collier, Director of CBOC Whitewater on the American River in California was buying from a local vendor. Corky said the prices were good, but the turn around was four months and quality control was poor. Mid season, CBOC ran out of stock and sought out Pennsylvania based Ohiopyle Prints which he had met at America Outdoors' annual Confluence tradeshow. The most important thing is turn around time and quality control.

Scott Bortree, a partner with Ohiopyle thinks the four key elements in selecting a supplier should be service, price, design and availability. He felt a good supplier can act as an inventory source as well as advise you what items are hot sellers. Rob Worthington, president of Huge Sportswear agreed, "Turn around, inventory and a good fun tee-shirt. Tee-shirts are the way to go, because everybody's got a $20.00 bill on them." Selecting what to sell, timing and who to buy from can make a big difference in your profits.

How to pick products
Selecting enticing shirts, hats, shorts, eye straps, etc. that will sell can be a challenging ordeal way outside of your areas of expertise. Scott from Ohiopyle observed that the most successful buyers for stores had been around a few seasons, knew their clientele, the trends as well as the timing of their business. Work with your suppliers and reps for good advice. In the high water season, "No Fear " or "Extreme White Water" shirts will sell well to thrill seekers. If families and church groups are your typical guests, something more mainstream is suggested. Rob, with Huge Sportswear gets a little frustrated when, for example, a bookkeeper for an adventure travel company suddenly becomes a fashion consultant. " We don't tell you how to run rapids, don't tell us how to design shirts that sell" Industry professionals want you to be successful. Listen to their advice, fashion is always changing. According to Janice Marzlin, with Santa Rosa, California based Bright Ideas, a promotional product supplier; people want quality, not quantity. She also concurred, "Get friendly with your promotional person. Find out what's hot."

Trends in wearable for '99

The trend towards casual in the workplace will cause a increase towards upscale, quality wearables. 100% cotton, brushed cotton twill, denim and a new fabric, Tenecol lyocell, a all-natural fiber that feels like silk, yet has the weight of cotton are the best selling fabrics. Art formally dominated as the #1 item. The quality of the garment and matching the art with the garment is now as important to your guests.

Earthtones, tans, shades of greens( spruce, hunter, olive) are growing in popularity as well as traditional colors red/white/ navy or black/khaki/white. Matching colors to art is important. When designing your artwork and logo, know how you are going to use it and the best combinations of fabrics and colors. Retail malls are a good source to evaluate future trends. 15% of your stock should reflect "mall trends" and the balance should represent your clientele tastes.

Rentals
Corky made a 100% return on a $5000.00 investment for wetsuit rentals and the storage building his 1st year. "It definitely paid for itself and was a good investment", stated Corky. Besides adding a lucrative new profit center, rentals provide added value to your guests. At the end of a couple of seasons, CBOC makes space for new inventory by creatively renting the wetsuits for $15.00 per day or selling them to guests for only $20.00.

Merchandising
Unlike equipment, clean rooms, food and service; if you are not doing a good job in retail, nobody's going to complain. Only your potential profits suffer. Jack Wise, CEO of Wildwaters, Ltd. averages a 3-to-1 guest to sale ratio with an average sale-per-head of $3.50 - $7.00. Industry average is a $6.00 to $8.00 or larger sale per head. If your not meeting or exceeding this you are missing profit opportunities.

Invest in store fixtures to professionally display your products. Lighting, store space and location, traffic flow, music and staff make a big difference. Customers often come in groups, make sure to have adequate space. Always display the apparel face out. Waterfall display racks or clothing "flown" from the ceiling above the inventory work well. Check your inventory weekly to see what's' selling and what's' not. Don't sell out of cardboard boxes. If your guests can't see it, it's not going to sell. At the Denali Backcountry Lodge in Alaska, guides subtly remind guests before departure "This is a good time to hit the store"

Creative Alliances
Jeff Greiner, Marketing Director with Wildwater told me about their Adventure Centers partnerships. These are collaborative cross-promotion efforts with local resorts. Wildwater leases space and provides a wide range of products and services - travel books, apparel, maps, bike and raft rentals, guided fishing and raft trips. Wildwater is the on-site outfitter to the resort guests and Wildwater can promote lodging to their adventure travel clients. All parties win and prosper. What opportunities are there to create strategic alliances that enhance your profits?

Guerrilla Promotion Secrets
Let your staff and clients do your selling. If your staff are all wearing company shirts, it gives your business a professional look. And everybody wants to look cool, like the guides. In a pre-tradeshow mailing to nearby clients and prospects, offer a prize (a shirt) for anyone showing up at your booth wearing your company shirt. Dozens of people walking around in a trade show wearing your company name is good and a perfect time to sell your previous clients and their friends a new adventure. Utilize your web site to sell your company apparel.

Don't be afraid to jump into the retail or rental game. There are substantial profits to be made. Look around and see what creative alliances can be formed. By offering additional products and services to your clients you are not diminishing your image or value. You are enhancing it.

Tim Warren and Adventure Business Consultants, has helped dozen's of adventure travel business just like you create new sources of revenues or enhance them with retail sales and strategic alliances for outfitters, agents and outdoor education.

Proud Member of

Friends of Mongolia
Mongolian Tourism Assn.

The International Ecotourism Society
Outdoor Writers Association of California

Outdoor Tourism Business Alliance

AdventureBizSuccess.com
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Adventure Sports Online - Outdoor Mind

 



Proud Member of

Friends of Mongolia
Mongolian Tourism Assn.

The International Ecotourism Society
Outdoor Writers Association of California

Outdoor Tourism Business Alliance

AdventureBizSuccess.com
Adventure Travel Media Source
Adventure Sports Online - Outdoor Mind
Adventure Travel Trade Association



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