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We asked industry leaders for their thoughts on everything from inflation to supply chain woes, the Alibaba invasion and what the post-pandemic new normal will look like. Here’s what some of you had to say.
19 industry leaders sound off on the state of paddlesports
On being special
If a specialty retail store is not successful during this time it is most likely because they are not special.
— Brian DeFouw, Confluence Kayak & Ski, Denver, Colorado
On staffing
Hiring good people with experience is very, very hard to do. Hiring good people with experience and common sense and sales ability—that’s even more difficult.
— John Warta, Owner, Paddler’s Cove, Washington, New Jersey
We’ve had to be creative and flexible for the workforce. It could be a mom who’s got to drive her child to school in the morning and then she’s got to leave at 2:30 to pick him up. So we might get that individual from 8:30 a.m. to 2 p.m. Or we might have a stay-at-home dad who is only available from 4 p.m. to 9 p.m. so he would work an evening shift. We’re just finding ways of being creative and working within people’s available schedules.
— Jason Eccles, President, Branches LLC
On the post-pandemic future
I think it’ll go from spectacular to very good, and that’ll be the new normal. You can’t complain about that.
— John Hoge, Partner, Sea Eagle
On the Alibaba influx
The thing nobody is talking about is the rise of the Alibaba kayak into specialty retail, because no one had anything else to sell. You even have some of your high-end shops who have been around for 25 years buying the Brooklyn Kayaks and the Hoodoos of the world because they couldn’t get any of the stateside stuff. The repercussion of the pandemic was an extreme influx and then popularity of those copy-press-repeat Asian boats.
— John Hipsher, Marketing Manager, YakAttack
On opportunity
I remember the Take Me Fishing campaign to get people to go fishing. They spent 50 million bucks on it. Spared no expense, and didn’t move the needle at all. It was a 40-year trend of decline that abruptly reversed itself in 2020 when the Pandemic came. The same thing has happened in paddlesports.
— John Hoge, Partner, Sea Eagle
On reality
We’re at the mercy of our labor market and sourcing. I don’t know of any company who isn’t. We would love to be making many, many more paddles, but we can only build as many as those two elements will allow.
— Taylor Robertson, Marketing and Sales Director, Werner Paddles
On staying power
I expected a full-on kayak fire sale. I thought Facebook Marketplace would be full of $5,000 Hobies being sold for two grand, but it never happened. That screams out to me that people who came to the sport in the Pandemic want to stay. It’s on us as an industry to keep them here.
— John Hipsher, Marketing Manager, YakAttack
On venture capital in paddlesports
If you really know and understand venture capital, what happens is that they hook up a pipeline to the company, and that pipeline pumps money. For the first couple of years, the money might flow both directions, but eventually a check valve gets installed and the money only flows one way.
— Jason Eccles, President, Branches LLC
What’s one thing you learned about retail paddlesports at the start of your career that still holds true today?
It has always been an aspirational industry. People look at a paddlecraft as a tool toward self-realization.
— Matt O’Brien, General Manager, Offshore Marine & Paddling Warehouse, Lake Bluff, Illinois
The end-to-end customer experience is what will keep people coming back. Be true to your beliefs and values and don’t try to be all things to all people.
— Simon Coward, Director, Aquabatics Calgary
People more than ever seek out and need the simplicity and connection to the natural world that paddling provides.
— Mary Snyder, VP Marketing, Absolute Outdoor of America
It is all about sharing the passion. If we can teach someone how to paddle, give them confidence, a sense of security and adventure, then they may be paddlers for life. A store without a way to teach is not able to give the full experience and create passion.
— Brian Henry, Owner, Ocean River Sports & Adventures
What piece of old-school wisdom no longer holds in today’s retail environment?
One of our reps used to say canoe buyers were people who get their new shoes from the river. These days, canoe buyers are spending more on boats than any other segment of the paddlesports market, and it’s actually more difficult to find buyers for $1,200 boats than for $3,200 boats.
— Matt O’Brien, General Manager, Offshore Marine & Paddling Warehouse, Lake Bluff, Illinois
That good personal advice and service will get business. It’s more complex than that, and we all need to have an online presence, do social media and be competitive with pricing, because things are so transparent online.
— Brian Henry, Owner, Ocean River Sports & Adventures
The heart of the problem
The issue facing retailers today is the inability to hire and retain good employees. Most shops are at the point where they have extended everything available in the way of compensation and incentives to get good people. Margins have been decimated with freight costs and stores cannot afford to pay $20–$25 an hour for floor help. Now comes the real problem: People cannot live on less than that.
— Reece Fabbro, Jr., Owner, The Backpackers Shop, Sheffield, Ohio
How have recent spikes in material and/or shipping costs impacted your business, and what have you done to cope?
We have some supply chain issues due to Covid, transportation clogging that has supply pricing increasing due to demand and, more recently, we have the price of gas double its norm. It’s a perfect storm for increasing costs and that will always translate to increase in prices on the dealer floors.
These challenges have shown us that it’s key to maintain our Made in U.S.A. roots. Though some sources are dependent on international shipping, most of our suppliers are based in the U.S. That reduces our supply chain risk greatly, and we are only paying local shipping rather than international.
— James McBeath, Director of Marketing, Jackson Kayak
We’ve made modest increases to our standard shipping rates, but invariably when the billing statement arrives we end up eating higher than expected fuel surcharges for many of our online orders. For Canadian and other international shoppers, we sometimes offer a price discount to help offset their shipping costs.
— Meg McCall, Founder & CEO, Angle Oar LLC
We’ve tried to buy in truckloads to maximize freight savings and take advantage of all manufacturers’ discounts. Cash is king and we’ve spent a lot, and earlier, to ensure we have stock. If you don’t have inventory, customers will find those who do.
— Morten Fogh, President, Fogh Marine
We have experienced a significant spike in raw material costs and availability due to the unpredictable impacts of Covid shutdowns throughout our vendor partners. Ocean freight costs are currently three to four times where they were prior to the Pandemic, and ports around the world are experiencing unpredictable loading and off-loading schedules. At Kokatat, we do whatever we can to mitigate the problems by extending our development timetable and over-communicating with our supply chain suppliers.
— Jeff Turner, Director of Sales, Kokatat
Do sub-$300 kayaks actually compete with manufacturers of higher-priced kayaks?
They do, indirectly. These kayaks often end up limiting individual paddling longevity. Accordingly, people who buy these boats simply do not get into the sport.
— Mike Overton, CEO, Outside Brands
Is the boom of 2020 and 2021 continuing?
Yes and no. Things are definitely not as hot and heavy as spring 2021. We are still seeing really strong numbers and interest, just not the frothing madness that 2021 saw.
— Simon Coward, Director, Aquabatics Calgary
Is paddling shifting from enthusiasts to casual consumers?
I don’t think “shifting” is correct, that would indicate enthusiasts are leaving paddlesports. It’s more like the casual consumer market has been growing. Specialty retailers can survive by being authentic and turning casual consumers into enthusiasts through education, events and interaction.
— Brian DeFouw, Buyer, Confluence Kayak & Ski, Denver, Colorado
At the end of the day, do paddlesports consumers choose based on country of origin, or price?
Price is much more of an issue than country of origin. Paddlers want price, quality and innovation.
— Juliet Jacobsen Kastorff, Co-Founder, Endless Rivers Adventures, Bryson City, North Carolina
Casual consumers will always be driven by price, but enthusiasts care more about quality and performance. Everyone is happy when a made-in-the-U.S.A. product is high quality, performs well and is the best price. With supply chain issues and shipping costs, it seems like more “Made in the U.S.A.” is going to be the best price and most available.
— Brian DeFouw, Buyer, Confluence Kayak & Ski, Denver, Colorado
Most of our consumers in the light recreational side of paddlesports are looking at prices, more so than where products are made. It’s not to say some don’t look at both, but with our current economic condition people are watching price tags a little more closely.
— Austin Albers, President, Buffalo Outdoor Center
What has been the biggest change in the specialty retail game in the last few years?
The death of outdoor trade shows was a huge change. Order deadlines are earlier than they have ever been, we are writing orders blind with no sell-through and without seeing the next season’s product. To adjust we have been working closely with our reps and polishing our crystal ball like never before.
— Brian DeFouw, Buyer, Confluence Kayak & Ski, Denver, Colorado
There is no getting around the fact the Internet has changed the industry. Even the most supportive guests often default to ordering online because it is so convenient and so much a part of our culture now.
— Juliet Jacobsen Kastorff, Co-Founder, Endless Rivers Adventures, Bryson City, North Carolina
Gear for all
There are more women in the sport and more people who are not your definitive athlete build. It puts a lot of pressure on the manufacturers to address women’s fit and offer larger and smaller sizes, which is not easy to do. I think there needs to be more recognition of the manufacturers who make that effort. We should also recognize manufacturers who have committed to making a smaller footprint environmentally.
— Juliet Jacobsen Kastorff, Co-Founder, Endless Rivers Adventures, Bryson City, North Carolina
The age of opportunity
Each year we’re fielding more and more inquiries from older, experienced paddlers looking for gear, techniques or modifications they can try in order to keep kayaking. We’re meeting some of their needs with our assistive paddle holder, but there’s a real opportunity for innovation in everything from cockpit design to launch assists and roof racks.
— Meg McCall, Founder & CEO, Angle Oar LLC
Go with the pros
There’s a current industry outlook that pro deals are unhealthy and unnecessary, given the unprecedented demand provided by the pandemic. But the wave is calming and soon brands are going to need experts in their camps.
— Andrew Stern, VP of Marketing, Branches, LLC
Pro deals with the right people can be extremely helpful. They provide all sorts of feedback and can promote products, sales, events and opportunities to the communities they represent with less sales push than we can.
— Morten Fogh, President, Fogh Marine
Kokatat manages pro purchases for retailer staff, outfitters and working guides, and swiftwater rescue personnel. We consider these qualified discount recipients the front line of our sport.
— Jeff Turner, Director of Sales, Kokatat
On inflation
We have a new company-wide metric we started tracking in the Pandemic: number of price increases received per week. Not per month, per week. Everything from raw wood to resins, carbon tubing, foam plugs to shipping boxes. Nothing has been untouched.
We’re doing our very best to keep our costs down by automating as much as possible, flipping suppliers, reducing waste and engineering better solutions, but we’ve found the biggest issue is labor. The primary source for our supplier delays and price increases is lack of help, inflation and the rippling effects of Covid.
— Andrew Stern, VP of Marketing, Branches LLC
With higher prices for most recreational products, kayaking is still a great value. Our industry needs to promote the ability to enjoy kayaking close to home.
— Morten Fogh, President, Fogh Marine
The impacts of Covid continue to ripple through our supply chain. We have experienced a significant spike in raw material costs and availability due to the unpredictable impacts of Covid shutdowns throughout our vendor partners. Ocean freight costs are currently three to four times where they were prior to the Pandemic, and ports around the world are experiencing unpredictable loading and off-loading schedules.
— Jeff Turner, Director of Sales, Kokatat
On red tape and red ink
Regulations hitting the industry are making it harder and harder for small business operators. Also, the overtime and minimum wage requirements that are potentially on the horizon would have huge impacts on large overnight outfitting companies.
— Austin Albers, President, Buffalo Outdoor Center
Why own when you can rent?
A challenge is selling boats to a younger generation who simply does not want to own as many material items. Accordingly, rental programs and gear share growth is an opportunity.
— Mike Overton, CEO, Outside Brands
On paddling safety
As a life jacket manufacturer, we continue to be concerned by the increase in paddling fatalities, especially those involving newcomers to the sport. We need to counter the perception paddlers don’t need to wear a life jacket in calmer water, and we’re working with our industry partners and retailers to spread that message.
— Mary Snyder, VP Marketing, Absolute Outdoor of America
Crystal baller
The biggest question we’ve been asking and studying is what happens after the Pandemic. We are calling it the normalization of paddlesports, and we believe it’s happening this summer for paddles. This is likely different for boats and accessories.
We are hearing the new normal will be around 200 percent above pre-Pandemic numbers. The companies who have stolen shelf space, increased their distribution network globally, and continued to innovate will elevate this number. The brands who couldn’t scale up over the past two years, or that lack a post-Pandemic vision and plan, may drag this number down.
— Andrew Stern, VP of Marketing, Branches LLC
This article was first published in the 2023 issue of Paddling Business. Inside you’ll find the year’s hottest gear for canoeing, kayaking, whitewater and paddleboarding. Plus: Industry leaders on the post-pandemic landscape, 50 years of paddlesports, the rise and fall of ACK and more. READ IT NOW »
“I guess we wait here until somebody tells us to start paddling.” | Feature photo: Jaime Sharp