Coming To Bat

Baseball struggles against outside forces but continues to make the hits for dealers

Christmas comes early at Nicklasson Athletic in New Ulm, MN, when the team dealer and retailer sees its baseball business take off from March through May.

“Baseball sales have been very good,” says Mitch More, owner of the business that covers the southern third of Minnesota with three roadmen. “We are in an area that favors baseball. We also have a good selection in our store. Baseball season for us is like Christmas for everyone else,” More notes about Nicklasson’s hardball business.

Team dealers report that the baseball business continues to perform steadily. It may not be the MVP it used to be when it was one of the few games in town, but it continues to drive steady sales across a variety of markets.

That’s the sentiment of Tom Brauckmiller, owner of Oregon City Sporting Goods, Oregon City, OR. Baseball sales have been level, which speaks volumes in this economy. And part of that has been his own cautious approach to the business.

“We’ve taken a position to scrutinize our inventory and maintain our margins,” Brauckmiller notes. “We haven’t taken a chance on newer products. We’ve stuck with the basics to make sure we have want they want. We are a higher-end, special-order store, too, so we still can supply what they want. We maintain the quality and service. Budget constraints don’t allow teams to completely outfit the kids so we will order the product if we don’t have it,” he adds.

“Baseball is still good for us,” says Tony Cardinal, president of Cardinal’s Sport Centers in Lubbock, TX. “It’s such a great sport,” he adds.

Sales have been flat at Burghardt Sporting Goods in Brookfield, WI, says Brian Burghardt, a fifth generation member of the family that has owned the store since it opened in 1881. He’s not down on the business by any means, but attributes that performance more to poor purchasing decisions, especially in the bat end of the business where he had to clear out product.

As a team dealer in the vast expanses of Wyoming, Bush-Wells Sporting Goods continues to hold its own in the baseball business, says Kirk Nelson, retail manager for the Casper, WY, business. “Smart buying” and a loyal following help, Nelson notes.

The only downside has been pressure from Internet sales, Nelson adds. “We have to price our gear accordingly.” Fortunately, though, he reports that Bush-Wells has been able to maintain its margins.

Favorite Teams

The baseball business also opens up a variety of markets — from T-Ball to Youth Leagues, from select teams to high schools. And every team dealer pitches business to these markets with a different delivery.

Bush-Wells doesn’t go after the high school business. It’s not because it’s three roadmen don’t call on schools. Instead, Wyoming – along with Montana and South Dakota – is one of only three states that doesn’t offer baseball programs at high schools.

Instead, Nelson says the youth leagues are strong, with 600 kids playing just in Casper, a town of 50,000. The area also has some Babe Ruth and American Legion ball, so Bush-Wells gets some baseball business from the select teams for high school age players.

Bush-Wells is the official equipment supplier for the youth league. While some families may forget whose banners are on the field walls for youth players, it draws business from parents who come in the store to buy bats, gloves and more.

“We work closely with the youth programs to get the message out,” Nelson says. He also trains the umpires, so the store gets good word of mouth from the arbiters.

Plus, Bush-Wells participates in the league’s fundraiser card that offers discounts from local businesses. That draws people into the store. Coaches also get some help. After all, these volunteer coaches too often end up spending money out of their pockets, so Bush-Wells tries to ease the financial burden, Nelson adds.

Cardinal’s Sport Centers does well with all three markets. “We hit a growth spurt about two to three years ago on the youth market,” Cardinal says. “The volume is in the youth leagues. Then you start selling the upper end a couple years later,” as the players step up a notch. Those travel teams buy quality so they end up spending more on average. His five roadmen, though, do a good job in capturing sales from youth leagues, select teams and high schools. And he just opened a store in Plano, TX, in mid-October to further cater to the business.

Well-known locally as the place to go for baseball, Burghardt Sporting Goods gets its share of business from select teams. “They come to us. We are a baseball outfitter. You don’t see the selection we carry in other stores. We are a cult for the diehard player,” Burghardt says.

That’s a necessity because Burghardt doesn’t use the traditional road reps to generate sales. Instead, teams from throughout southeast Wisconsin travel to the store’s team room. Internal marketing through e-mails and its Web sites draws the business. And it works, with sales split evenly between team and retail, Burghardt says.

About 70 percent of the baseball business comes from schools for Nicklasson Athletic, More says. Budget cuts, though, have dampened the school business, although booster clubs have helped fill the gap. The team dealer also has worked harder to serve the youth associations and select teams.
Finding lower cost options for schools is part and parcel of the school business these days, says Brauckmiller. He makes up for that by also doing business with the select teams and youth leagues.

The Bat Challenge

The bat business remains strong for team dealers but there are some significant changes taking place. (See related story on page 28.)

For starters, it’s the number one performance product for Oregon City Sporting Goods. What’s changed though has been the wealth of brands now available. He sells his share of Easton, Louisville Slugger and DeMarini bats.

While Easton long held a stranglehold on the market, those competing models are giving the company a run for its money. And that money is approaching dizzying levels.

“Prices are still outrageous,” Brauckmiller says. “I’m selling bats at $450. It’s ludicrous. There are just too many cosmetic changes.”

“The bat business has changed from two brands to several,” Cardinal agrees. He says Easton and Louisville Slugger now contend with up-and-coming brands such as Combat and DeMarini.

At Burghardt Sporting Goods, Easton has been struggling as DeMarini, Wilson and Louisville Slugger have come to the forefront. Part of that may have been Easton’s roll-out of the Matrix, which was complicated and muddied the waters. Plus, Easton may have been too heavy on high-end price points.

Easton is still the top seller at Nicklasson Athletic, More says, but the existing rules governing the exit speed really level the playing field. “So many companies have caught up with Easton because of these restrictions.”

The new rule changes on the college level outlawing composite bats also will eventually trickle down to the high school level. Such composite bats have been Easton’s top seller.

Bat makers will start shipping product next year in advance of the high school rule changes, which will take effect in January 2012. Consequently, most team dealers will be watching their bat inventory carefully next year.

“You better be out of the bats that don’t meet the new standards soon,” Burghardt says. He’s waiting for the MAP pricing restrictions to be removed so he can move the older inventory. In the meantime, he’s packaging some of the bats with team sales to move as many as he can now.
The Internet also makes it tough to sell bats, dealers add.

“Bats have taken a big hit from online sales,” More says. While many manufacturers have helped by restricting marketing bats at reduced prices, there are anomalies with seasons, he notes. In the Upper Midwest, by time the season rolls around in March bat makers are usually rolling out new models for the College World Series.

Consequently, restrictions are dropped and the warehouses and Internet sites don’t have to honor minimum pricing. “We had to sell one bat at $20 below cost just to move it,” he says.

Bush-Wells avoids getting stuck with high-end bats by limiting its selection. Instead, it focus on models that sell for $120 on down, with the bulk of its volume in the $60-$90 range, Nelson says.

It also focuses on better glove lines than those found at the category killers and marts. The youth market leans to the $20-$30 range, Nelson says, while the older players can choose from gloves in the $50-$80 price points. “There is a lot of quality out there in the $50-$80 price range.” And if someone wants a premium glove not found on the shelves, Bush-Wells will order it, Nelson says.

“It seems that every year one of the companies has a great $50-$70 glove,” More agrees. “That price range is 70 percent of our inventory,” with Easton, Louisville Slugger, Rawlings and Wilson offered. “Anything over $100 and we struggle,” he says.

Those high-end gloves aren’t moving, Burghardt adds. Instead, he sees solid sales for anything under $100.

Getting in Gear

Catcher’s gear also sells well. “There have been upgrades in quality of catcher’s gear without too much of a price increase,” Cardinal says.

Bush-Wells sells the Adams line of catcher’s gear, Nelson notes. “It’s a premium line and it’s something the marts don’t carry.”

Stocking the better catcher’s gear also helps at retail, More says. “We get people who come into the store and we have the selection in our warehouse.” In particular, Diamond Sports is his top-selling brand.

Dealers also see training aids as a good seller.
Nicklasson Athletic stocks some of the hitting aids as parents and players look to improve their game. Not surprisingly, Joe Mauer’s Quickswing took off in his area, a tribute to fans’ interest in their local team’s hero. The slugger for the Minnesota Twins simply hit one out of the park after he won the league’s MVP. Nelson says the company sold out its stock.

Cardinal Sport Centers do sell their share of training aids but it’s become tougher, Cardinal says. “We used to be able to sell anything, but it’s calmed down.” What happened? As the market got flooded with the next great training aid, some just didn’t perform. “Some of them are good but many of them aren’t. Many people who try a training aid that just doesn’t work tend to lump them all in the same category.”

But the venerable wood bat still works. “A lot of kids use them for practice and in the batting cages,” Cardinal says. Dealers also sell their share of wood bats to players who play in leagues and tournaments that mandate the wood bat.

What’s on deck in hard goods isn’t all that exciting, team dealers say. Most say manufacturers are simply fine-tuning their products.

Just back from the Sports Inc. show in Las Vegas before Thanksgiving, Burghardt says he didn’t find anything new on the horizon. “It was underwhelming. I like to come back with the new thing but I really haven’t found anything over the past couple years.”

“There hasn’t been a lot of new technology,” Nelson agrees. Outside of bats, there hasn’t been much more to tweak. He is interested, though, in Under Armour’s foray into baseball hard goods. He has an order for the popular company’s catcher’s gear that he was hoping will become a winner for the 2010 season.

Despite the lack of any new exciting products, team dealers remain optimistic about the baseball business for the New Year, especially if the economy continues to show signs of improvement.

Wait Until Next Year

“I’m optimistic that we will grow,” says Nelson. Part of that is sparked by new fields in Casper. He also knows that baseball has its place in the community. With a minor league team, baseball has a presence from youth to pros, Nelson notes.
Nicklasson Athletic will give baseball a bigger push, More adds. While he expects bat sales to take a hit next year, he’s moving more hard goods to the front of the store so customers see the ball gloves and accessories such as sliding shorts and bat weights. “Those items will push our sales and help our margins,” More says.

As a full-service store and team dealer, Nicklasson also emphasizes service. “We do wait on customers. We get a lot of moms. We know what the schools and youth associations are using. That’s why we have a lot of people coming to see us.”

Brauckmiller says Oregon City Sporting Goods will maintain its respectable level of baseball sales as part of its overall business. “In this business, it’s fickle. People join leagues and they move on.”

One constant, though, is focusing on serving athletes with performance products. The big-box stores just don’t carry the inventory, he says. “People know that I have the stock,” even schools that have emergencies. “That’s important in selling and maintaining a decent margin.”

With his experience in the sport, Brauckmiller backs that quality up with knowledge and service. “The first eight women who came in here after I bought the business several years ago welcomed the service. About 75 percent of our shoppers are women, and they take comfort in the service we provide.”



What They’re Saying ... Team Uniforms
What is driving the baseball uniform business for 2010?

“We are seeing the trend toward custom uniforms. Colors and color blocking silhouettes allow teams the ability to create a unique look from a variety of different fabrications and colors.” — Cynthia Key, Intensity Athletics

“Budgets are driving the business the most this year. The budgets are either being approved late or the budgets are getting cut. Cut budgets mean less money to spend.” — Michael Ferri, Badger Sportswear

“Price seems to be the driver for baseball in 2010. While quality and delivery are desires, price has taken the top spot.” — Scott Klieman, Powers

“More than ever value is at the top of all our customers’ shopping lists.” — Mark Mertens, A4 Sportswear

“In today’s market the consumer is looking for a superior product at a value.” — Robert Cleveland, TSI/Talent Sport

“The consumer is looking for innovative products that feature new technical fabrics that address their performance needs and apparel that has technical features that enhance their ability to perform at a higher level.” — Kristi Klemmer, Majestic Athletic

“Budgets are obviously a major concern and price and value will continue to drive the baseball market. Another critical factor will be inventory and service. The market has shifted, with less booking orders and more late orders. Price is always an important factor; however, we have been receiving a lot of inquiries in our middle-tier products because customers are looking for product with additional details, without the price of custom uniforms.” — Tom Mercer, High 5 Sportswear

“The majority of the roster consists of cost and availability.” — Chad Trollinger, Augusta Sportswear

“Hot styles.” — Whitney Johns, Velocity Athletics



What They’re Saying ... Team Caps
What is driving the team cap business for 2010?

“The resurgence of the fitted cap and high crown flat bill styles provide a much-needed boost to the team business. We have seen this trend within the sporting goods retail channels for the last 12 months. We will see flat bill caps roaming the sidelines this next year for the first time ever. Mesh also continues to be strong, especially in the southeast.” — Steve Hare, Top of the World

“Embroidery concepts that the consumer wants on his cap. The quality of the embroidery application on the cap is the best tool for repeat sales, along with on-time delivery.” — Larry D’Amato, Team Star Classic, a division of Diamond Star Classic Industries

“Custom caps for travel teams starting as young as eight years old through to college baseball teams. Stretch caps and flat visors continue to trend up.” — Joe Rubertino, Outdoor Cap

“We are seeing the need for moisture management. Requests for flat brims are increasing.” — James Thompson, Pukka

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