By Cullen Poythress
Posted 12.15.2006
In light of the recent outpouring of concern among skateboard manufacturers over the rise in popularity of blank and shop-branded skateboard decks, Active, California’s largest skate retail chain, has reevaluated its hardgoods business model. While the retail giant will continue to produce its shop-branded boards, it will cease the sale of blank decks for a period of one year.
Although Active Owner Shane Wallace says he always caters to consumer demand, he’s willing to temporarily suspend the sale of blanks. “Currently we have provided the customer with exactly what they demand,” says Wallace. “If they demand blanks, we give them blanks. If they demand Koston boards, we give them Koston boards. Our goal is to put the customer first. Our new vision will continue to keep the customer first. It just won't include blank skateboards.”
While it’s not exactly orthodox business to cease the sale of a product that’s in demand, Wallace says his decision was based on ethics and his vision of sustaining a healthy market. “I'm a Christian first, a businessman second, and I have to treat others the same way I would want to be treated,” says Wallace. “Ethics plays a big part in this decision. The $29.99 blank is a good portion of our skateboards sales. However, we’re supporting a blank-board market that is spinning out of control.
According to Wallace, the current production of super-cheap blanks in Asia will soon flood the market with commodity decks with prices lower than any skate shop can compete with. He says it’s not a question of if, but when: “The distribution on a blank skateboard is the demise of everyone that relies on selling only skateboards. Soon China will make these boards for a dollar and put them in Wal-Mart. That would totally hurt all of us. We have guys poaching our store parking lots, selling $19.99 blanks to kids on their way into our stores. It just feels wrong at this point. People will never remember Active for how much money we made. They will remember us for what he did to make a difference to positively impact our market.”
The blank deck issue isn’t a new topic to Wallace. “We didn't place a blank board or an Active board in our catalog or on our Web site for five years {2001–2005},” he says. “I can honestly say we didn't receive much support for that sacrifice.”
Wallace says he’s not exactly sure how his new model will affect his bottom line, but he’s confident in his new strategy—the success of which he says will depend largely on the support and cooperation of his team, partners, and suppliers. “We have a great plan in place to share with our skate hardgood partners,” says Wallace. “I shared this plan with a few key people and some of our teamriders. They all were really excited. We have hope in the people that have supported us over the years, especially our teamriders.” Wallace says the people on the back end of his strategy will be the ones to benefit. “A guy like Andrew Reynolds will benefit the most,” says Wallace. “Andrew owns Baker and rides for Active. He’ll sell more products and make more money. We’re going to push our teamriders’ boards in the most aggressive way possible. We’re moving forward with only the best companies who support our team and our vision. The pie will be cut, and not everyone will get a piece. It's that simple.”
Wallace says skateboarding, its pros, and the manufacturers that keep the industry moving inspire him. He says it’s a special business that’s worth more than just a balance statement. “About a year ago, I was visiting some family in Ohio. On that visit I stopped by Alien Workshop {DNA Distribution} to meet {Owner} Chris Carter. Here is this humble guy in the middle of Ohio trying to keep the dream alive by selling skateboards, and only skateboards. When I got home in late June, my mind started to work. I thought to myself, ‘How can Active support skateboard companies in a more positive way that would benefit people like Chris Carter?’ Then out of nowhere, Chris sent me an e-mail in fall of 2006 humbly asking me to reconsider selling blank decks. I took his request to heart to no longer sell blank skateboards, and we did it in a way that would still allow us to be a retail leader.
But Wallace says he’s not sure other shops should follow his lead. “Telling other retailers to follow our lead is sketchy at this point,” says Wallace. “I hope everyone does what’s best for their business. At this point, we feel our decision to not carry blank skateboards is best for our business. At the end of 2007, we will reevaluate our decision. I hope this time our partners recognize our sacrifice and do something.”
The artice:
http://www.twsbiz.com/twbiz/features/article/0,21214,1570673,00.html
Chad Muska's blog:
http://web.mac.com/chadmuskaworld/iWeb/Site/MUSKABLOG/5D70BE41-DAF4-4F15-BE36-1F3663FA0835.html
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imperial_nsb pretty much summed up how I feel
"I would think about what this really means before offering any support. Skateboard manufactures have long had problems with trying to pretend they are not a true business (i.e. Consolidated.) But in reality that’s what it is, they produce a product and we consume it. In any other industry this would be considered crazy. BMW would never come out and say, “Don’t buy Hondas, we’re losing money” You adjust to the market and figure out ways to cut costs OR make such a superior product it’s worth the extra money. How is this any different than name brands and generic brands co-existing at a grocery store?
At the end of the day what is really happening is the skateboard manufactures are saying “Hey, were not making enough money so we want the consumer to pay for it” Stinks of a monopoly if you ask me…"
"Just for the record, I personally feel that the extra $ for a branded deck is worth the cash. Whether all in my head or not, I think they are higher quality…
But if a kid feels that a blank is all they need why should the branded decks be all that’s available? Because the skate brands aren’t racking in the cash like 5 years ago? How is that the consumers problem? I always hear people talk about supporting skate run companies… what does that mean? Do they turn around and support the everyday skater? I don’t see any companies saying, “Damn, we made a lot of money. Let’s lower the price on decks.”
At the end of the day where do you think all that money is going? It’s going to pay for the pros; that’s why they are so fired up about this. But what about the thousands of 14 year olds who mow lawns and save to buy that deck? That’s who should be fired up, cause they are the ones that are ultimately getting screwed. It all goes back to simple case of, either you adapt your price to the marketplace or make a product well worth the extra cash. But don’t count on the consumer to foot your bills if sales are slow."
And this is an advertisement being circulated around
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SO basically, the skateboarding industry is making profit at our expense. Way to go you fucking degenerate pieces of shit
The simple solution is for these companies to lower the costs of their decks. They have the means to do it, but they won't
C.R.E.A.M. indeed
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