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Northwest Report


By Chris Hansen

It likely comes as no surprise that if you’re looking for high margins, look no further than accessories and clothing. Manager Brad Vaterlaus at Exit Real World in Salem, Oregon, says snow clothes were the best moneymakers over the past season. According to Vaterlaus, two brands in particular "went off": Four Square and Special Blend. When asked how this affected his buying for the upcoming season, Vaterlaus says, "We know we had good sell-through, so we were able to increase our [outerwear] orders."

Frank Crippen, owner of North by Northwest Surf Company in Port Angeles, Washington, says his best sellers were accessories: "Trinkets, tools, wax, hats–all the little things." And of course his logical response was that he will buy more of those items for next year. Also selling well was, as Crippen puts it, "girl stuff." And that’s a market he says he’s glad to see growing in his neck of the woods.

Economy dictates popularity in Kellog, Idaho. Lou Lou’s Manager Tom Buder says that because of the somewhat depressed economy in Kellog, his customers were more likely to buy lower-end boards than top name brands. And because of the bargain-basement wholesale costs of many low-end boards, Lou Lou’s was able to make 50-percent margins or more on some boards last season while still giving its customers a good buy. But Buder knows that as the snowboard market corrects itself, the shop may not be able to take advantage of such deals in the future. And like everyone else, the shop is also taking advantage of keystone (100-percent markup) margins in accessories and softgoods.

Just up the road in Hayden Lake is the winter-only store called the Ski Shack. Despite the name, Owner Carolyn Lyden says the Ski Shack does more than 70 percent of its business in snowboards. Like most other shops, Lyden says, dollar for dollar, accessories bring in more money. But when you look at the big picture, sale for sale, it’s boards and other big-ticket items. Business was a little tough last year, with several stores in the area closing out boards and then going out of business, so the Ski Shack won’t be going any deeper in product for next season but will be around for the long haul.

And finally, the Board Shack in Idaho is growing by leaps and bounds. Owner Casey Whiting opened his store when he graduated from high school four years ago and says the shop has grown 500-percent since then. In fact, he’s looking to move to a larger space and open another store this year.

Whiting’s shop saw customers more interested in last-year’s product at a good price than this year’s hottest new trends. "Price makes a difference to our customers," he says. Whiting adds that roughly 75 percent of last season’s snowboard sales were closeouts he was able to pick up below wholesale and sell just below suggested retail, giving him as much as 60-percent margins on some items. "But you’ve got to balance your sales," Whiting continues. "You don’t want to be known as Mr. Closeout."