Simms to Sell Direct:

[LadyFisher]

Simms to Sell Direct, Yet Reaffirms ?Specialty Matters Most? Commitment? CEO K.C. Walsh Answers The Tough Questions

Posted on 02/16/2012 by admin
Simms Fishing Products dealers were informed this week about the company?s decision to make substantial changes to its distribution plans. Most notably, starting in August, consumers will be able to purchase Simms gear through www.simmsfishing.com. The company also says it will forbid dealers to sell current products on or through Amazon and eBay.
The decision by Simms to sell direct comes as a surprise to few. Still, Angling Trade has received feedback from the retailer community ranging from anger to total ambivalence. In most cases, the reaction has been a desire to get more facts.
With that in mind, Angling Trade editor Kirk Deeter interviewed Simms president and CEO K.C. Walsh. Here are the first of K.C.?s candid answers. You can see the full interview in Angling Trade?s E-newsletter, to be distributed next Tuesday, February 21.

[anglerdave]

Well why not. You can buy direct from other manufacturers. I suppose if I was a fly shop owner I would feel differntly. But seeing as how the price is the same no matter where you buy I suspect that when it's time for me to get a new pair of Simms waders, I'll order them from the same place that I did before and not from the company.

[PA Dave]

Up to last year, I had to drive 5 minutes to get to a shop that carries Simms. Now I have to drive nearly an hour. As more and more fly shops roll up the welcome mat and forever lock their doors, Simms loses more and more sales. It stinks for the remaining dealers, but Simms has to tailor the marketing plan to the realities of the world or someday roll up their own welcome mat.

[maodiver]

Now have the Catch-22. "Do I sell online and drive brick and mortars out of business, meaning that more people will have to buy online and I sell less to BnM?".

I know that my wallet rules, and I don't apologize for it. I buy for the cheapest price I can, regardless of where it is. That's capitalism. That is why the "For Sale" section of FAOL is so popular. And why I bought 2 Albright GP reels for $12.50 each on clearance brand new in the box from a brick and mortar store on Saturday.

[Rawthumb]

I suppose part of the issue is (1) satisfactory scope of distribution for Simms and (2) access to goods for customers. Both of the aforementioned are of concern to Simms if it allows dealers to decide what level of merchandise they want to carry in the store or in the catalog.

A lot of manufacturers do sell direct from their website because they want to make sure that a customer can always get it if he wants it. It beats the loss of sale and the dissonance in the association between the brand and the consumer. If it is too hard to get, a consumer can choose a substitute brand. The mfrs are usually protecting the retailer by not selling for less than the min. advert. price.

Personally, I like the option of being able to buy off ebait because they can compete a little with others and offer free shipping, mark downs on carry overs/new old stock, etc.

[tony300wby]

It is a very simple decision to make on Simms part, they can make more money. If they sell direct they get 100% of the retail price of the product. If they sell to a dealer/distributer they are getting 60% or less of the retail price.

As far as not allowing dealers to sell on Ebay and Amazon. My guess is that Simms feels that these huge online market places will be their biggest competition for retail sales.

Good luck, Tony

[TyroneFly]

It will be interesting to see if Simms can make a go of this. I for one will expect a discount since the middleman is being eliminated. Right now I buy Simms products at a discount from my local shops so I have no desire to go direct until I am forced to do so and even then there are alternatives I can choose from.

[Brian Moffitt]

I think this is a really interesting choice for Simms. On the one hand it increases exposure and availability of their products. On the other hand it has the potential to alienate the "brick and mortar" flyshops who have been the mainstay of their distribution channel up to this point. I think the most interesting aspects of the deal are: A) No sales through Amazon or Ebay, B) Product will be sold at full MSRP with a shipping and handling charge, C) Simms will direct people who want to buy online through a shop (not direct from Simms) to one of 12 "affiliate shops" (no explanation of how those will be chosen).

From the perspective of one with friends who are owners of fly shops I think A and C are the key sticking points in the deal. Many flyshops use Amazon and Ebay as and online storefront due to the cost and complexity of setting up an online store. With this policy change they will no longer be able to sell Simms via these storefronts. There is no discussion about shops which have their own online storefronts (outside of Amazon and Ebay) and whether they will be allowed to continue selling via that channel. My guess would be yes, but one never knows. I think the larger issue will be how Simms decides on it's "affiliate shops". Will these be regular fly shops or will they be big box retailers, Simms hasn't said.

Simms has pretty much stated this direct to consumer option for them is a "premium" service for those that don't or can't deal with a local shop and who would rather by direct than buy from another online shop. I guess we will just have to see how it all shakes out. Given that other companies (Redington comes to mind) have rolled out a similar model in the last 12-18 months I'm not sure this is really all that big of a deal.

[big]

I think that if Simms wants to be a retailer, then don't wholesale. All they are going to do is screw their present dealers with this set up. I own a retail store in the home furnishing business and we have a similar problem with one of our mfgs. They have decided to go the same route as Simms. But they also told the retailers not to discount from the mfg's retail price. If we do, and they find out, we're out. Well, if I sell one of their items for $100.00, I have to cover the shipping to my store. If they sell the same item for $100.00, the customer pays the shipping . This plain stinks in my opinion. I have decided to continue to sell their products at a discounted price. If they somehow find out and cut me off, then I'll go elsewhere. People will find out over time that they will miss having a store to shop in once the internet kills all of us B&M stores.

[51BC]

As long as Simms keeps servicing their retailers, I don't see this move influencing my buying practices much. I'm still going to buy from the same folks I've been buying from for years.