Common Misconceptions about the Hockey Equipment Industry

Over the last 3 years of working in a hockey shop I've learned a lot about the industry and what shocks me is how little customers know about the hockey equipment industry. 

One of the biggest misconceptions about the equipment industry is that manufactures strictly control their pricing, like states regulate tobacco and alcohol products.  If a company sells below the MAP pricing routinly they can get their account discontinued by the manufacturer.  That being said a big company like Monkey Sports or Total Hockey can test the MAP policy a lot riskier than your local pro-shop.  However at the end of the day, all retailers are supposed to be playing on the same field, thus the only way a retail company makes a profit is by selling as much merchandise as possible. 

Another big misconception is the profit margins on pieces of equipment, especially sticks and skates.  On most pieces of gear there is a 30-35% bump between the cost of goods sold (a term used in my accounting course) and the MAP price that it is sold for at the store level.  Because of this many stores have to order exactly what they are going to sell to avoid selling clearance items at or below cost.  For example the $799.99 skates from Bauer and Reebok have a cost around $540-560 (after shipping) so in order to make up the cost on 1 skate the company has to sell 3 skates.  This plays a huge role when items go on clearance.

Sticks in my opinion however are the biggest misconception that customers just don't know about.  Of all pieces of hockey equipment, sticks are the least profitable items that a company sells.  Especially the high end composite hockey sticks.  Sticks are what manufactures like Bauer, Easton, and Warrior make the majority of their profits from, and they don't share it with the retailers.  Because of the nature of composite sticks and their durability or lack there of I should say, retailers will not handle warranty claims of sticks.  Unless you're a perfect customer (buying everything from only one shop and buying at least $100 of merchandise a month on top of sharpenings and tape), retailers will not help you out.  The exception of this rule is knock off sticks such as the Powertech brand.  It's not that retailers don't want to help you out, most of them would be more than happy to help out with broken sticks but they just can't afford to help. 

Really what makes money for a retail shop is services that they offer - sharpenings, equipment repair, ect.  Next time you go to buy gear keep this information in mind, and if you're shopping for gear remember you may find an item cheaper online but you're really doing your local shop a favor by purchasing from them. 

LA Kings... What's going on here?

Going into the 2012 playoffs not many people expected the Los Angeles Kings to be where they are now.  After beating the Coyotes for a second straight game, the Kings are now 2-0 in their 3rd round match up vs. the Coyotes.  The Kings knocked off the top 2 seeds as an 8th seed in the Western Conference and with the last 2 games against the 'Yotes in the books the Kings have a 10-1 record in the playoffs.  They are also a perfect 7-0 on the road.  For many sports fans and for many hockey fans for the matter, the King's dominance right now is a complete suprise.  But really for any one that follows hockey closely, it should be no suprise at all. 

Going into the 2011-2012 season the Kings were considered by many as a top contender in the Western Conference.  With the additions of Mike Richards and Simon Gagne the Kings looked poised for a deep playoff run.  However the regular season was very turbulent and it took up until the last week in the season for the Kings to lock up the last playoff spot.  After two major changes (a coaching change and trading Jack Johnson for Jeff Carter) the Kings looked like a tough out but not really a contender to knock off the vaunted Vancouver Canucks much less the devilish St. Louis Blues.

Really though if you look at this team, there should be no suprises why they are where they are at.  The Kings have the perfect recipe for winning a cup, great goaltending, depth throughout the lineup, solid penalty killing, and a disciplined and defensive minded style of play.  This team has talent but guys like Dustin Penner and Justin Williams didn't play up to their capabilities during the regular season, they along with captain Dustin Brown (who is playing like a man possessed) have taken their games to the next level.  The Kings powerplay is starting to click.  They are big throughout the lineup, especially up front, and guys like Kyle Clifford and Dwight King are creating a nightmare for opposing defensemen on thier forchecking.  The Kings have a very talented core of superstars in goaltender Jonathan Quick, centers Mike Richards, Jeff Carter, and Anze Kopitar, and defenseman Drew Doughty. 

This team is the perfect playoff team, they are a nightmare to play against, and they are right now my top pick to win the Stanley Cup.