I realize that this is probably a "minor issue" post, given some of the intricate small business issues I read about here.
I have a competition-based issue I'm trying to work through and could use some feedback. Background: We are a very small "niche" sporting goods store in a small-market city. We have been very involved in this sport community for 10 years and we were doing ok until this year. Athlete registration is down 30% from last year. We have a ton of inventory left on the wall. The local sport governing body was awarded the hosting rights to a national championship this year (coming up). It was last hosted here in 2009 and we won the bid to be the exclusive equipment retailer at the 2009 event. The committee was very late in sending out requests for vendor proposals but we were asked to submit a bid this year and did. We were just informed that we are 1 of 2 equipment vendors selected. The other vendor is our major competitor (they are larger and have 2 huge stores in the city), selling the exact same equipment brands. We have a couple of 'specialty' products but they are small-ticket items.
We know how much we sold and the profit we made, based on the 300 athletes attending in 2009. To split that (or make even less) with the competitor tent right beside us does not make sense. Chances are that they also have overstock from the dismal season but because they are such a large company, they can price gouge us. Adding the extra hours of physical work of setting up a tent every day at the site, setting up/taking down inventory daily and having extra staff on site drives the profit margin down more.
I really want to clear out inventory (plus I have the opportunity to bring in new stock on consignment for the event) and have a profitable tournament. My alternate plan includes: contacting teams in advance and offering "pre-order" items at discounted prices, first opportunity to pre-purchase existing inventory at 'sale prices', keeping our store open beyond tournament hours, offering shuttle van service from venue to our store, prize give-aways, etc. My other option is to book a conference room at the hotel where all the teams are staying and bring the "store" to them. Emotions are getting into my head because I've been a part of this sport community as a volunteer for 20 years (in business for 10). My alternate plans seem logical but then some self-doubt creeps in.
Anything you can add would be greatly appreciated!
I have a competition-based issue I'm trying to work through and could use some feedback. Background: We are a very small "niche" sporting goods store in a small-market city. We have been very involved in this sport community for 10 years and we were doing ok until this year. Athlete registration is down 30% from last year. We have a ton of inventory left on the wall. The local sport governing body was awarded the hosting rights to a national championship this year (coming up). It was last hosted here in 2009 and we won the bid to be the exclusive equipment retailer at the 2009 event. The committee was very late in sending out requests for vendor proposals but we were asked to submit a bid this year and did. We were just informed that we are 1 of 2 equipment vendors selected. The other vendor is our major competitor (they are larger and have 2 huge stores in the city), selling the exact same equipment brands. We have a couple of 'specialty' products but they are small-ticket items.
We know how much we sold and the profit we made, based on the 300 athletes attending in 2009. To split that (or make even less) with the competitor tent right beside us does not make sense. Chances are that they also have overstock from the dismal season but because they are such a large company, they can price gouge us. Adding the extra hours of physical work of setting up a tent every day at the site, setting up/taking down inventory daily and having extra staff on site drives the profit margin down more.
I really want to clear out inventory (plus I have the opportunity to bring in new stock on consignment for the event) and have a profitable tournament. My alternate plan includes: contacting teams in advance and offering "pre-order" items at discounted prices, first opportunity to pre-purchase existing inventory at 'sale prices', keeping our store open beyond tournament hours, offering shuttle van service from venue to our store, prize give-aways, etc. My other option is to book a conference room at the hotel where all the teams are staying and bring the "store" to them. Emotions are getting into my head because I've been a part of this sport community as a volunteer for 20 years (in business for 10). My alternate plans seem logical but then some self-doubt creeps in.
Anything you can add would be greatly appreciated!
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