Morning All ...
This morning i am waking up finding a particularly strange yet interesting email from an anonymous reader asking me to post this ... there is a first for everything so here we go .. check this out .
Rumour has it...
Rumours normally lack any statement that is not quickly confirmed by both parties . So, when i heard Canadian Tire may purchase RBK/CCM Hockey , i dismissed it as propaganda and misinformation . Mind your, i was surprised when Canadian Tire purchased Hockey Life -even though... it was a good move . It adds future growth and may provide Canadian Tire a unique model to grow their business south of the border .
Canadian Tire is synonymous to hockey . And by growing the sport in the States , it will make shareholders richer . Companies like Bauer,CCM, and Easton , only provide lip service when trying to grow the sport . They are more concerned with taking market share away from each other . Most investors loathe the words "market share distribution" . It provides limited intrinsic value to the company and limited growth. Companies that trade market shares are often referred to as a standard piece of theatrical scenery called "limbo!"
When RBK/CCM slashed their prices on their high-end jerseys , and told me any team that signs a 3 year contract with them , they would provide that team with free helmets the first year , and free gloves the second year , etc . I felt that was an appropriate move to keep their jersey business intact and their brand closer to the consumer. That is something Canadian Tire does well at too . Bauer took a different approach by hiring 'gunslingers' to approach all the teams , and allocating the team business to a select few retailers - leaving out the rest with no piece of the pie , and very little margin to call it a business .
This is where it gets interesting . A friend of mine who works at Athletic Knit on Scarlett Road , told me he has over 100 workers , and is a Canadian Company with quality that speaks for itself . They have been around for over 50 years , and will do whatever they have to do to survive- even if it means they have to change their business model . I told my friend why not sell the business to Canadian Tire . I'm sure there is no problems competing with offshore countries ( plus, all the teams will love them ) . On another note , even SP Apparel from Montreal went ahead and reduced their pricing . Everyday , they are getting close-out lists from companies,and their current products are closing out a lot quicker than usual. And other companies like Kamazu are getting more aggressive than ever .
For my own peace of mind , I had to pursue and find out if this rumour that Canadian Tire is purchasing RBK/CCM is true. So i had lunch with a friend of mine who works at Hockey Life . He said that all this competition was unnecessary . Next year, the prices will tumble even more and it makes no sense what they're doing . He said he buys more hockey equipment that anybody else , and he should the the team business from Bauer . I smiled and told him i heard a rumour that Canadian Tire may buy RBK/CCM. He looked puzzled .
Two days later, a Jersey Representative came into my store . He was excited. He took me aside and whispered that the guys from Hockey Life told him Canadian Tire is just about to purchase RBK/CCM. I was confused by the rumour , and this is why i sign this letter anonymously , in order not to start a rumour ....
Anonymous
* interesting stuff ... that is why i thought i would share this with anyone that reads my blog . and trust me i did not write this , words like intrinsic are words i can't lay claim to using :)
This morning i am waking up finding a particularly strange yet interesting email from an anonymous reader asking me to post this ... there is a first for everything so here we go .. check this out .
Rumour has it...
Rumours normally lack any statement that is not quickly confirmed by both parties . So, when i heard Canadian Tire may purchase RBK/CCM Hockey , i dismissed it as propaganda and misinformation . Mind your, i was surprised when Canadian Tire purchased Hockey Life -even though... it was a good move . It adds future growth and may provide Canadian Tire a unique model to grow their business south of the border .
Canadian Tire is synonymous to hockey . And by growing the sport in the States , it will make shareholders richer . Companies like Bauer,CCM, and Easton , only provide lip service when trying to grow the sport . They are more concerned with taking market share away from each other . Most investors loathe the words "market share distribution" . It provides limited intrinsic value to the company and limited growth. Companies that trade market shares are often referred to as a standard piece of theatrical scenery called "limbo!"
When RBK/CCM slashed their prices on their high-end jerseys , and told me any team that signs a 3 year contract with them , they would provide that team with free helmets the first year , and free gloves the second year , etc . I felt that was an appropriate move to keep their jersey business intact and their brand closer to the consumer. That is something Canadian Tire does well at too . Bauer took a different approach by hiring 'gunslingers' to approach all the teams , and allocating the team business to a select few retailers - leaving out the rest with no piece of the pie , and very little margin to call it a business .
This is where it gets interesting . A friend of mine who works at Athletic Knit on Scarlett Road , told me he has over 100 workers , and is a Canadian Company with quality that speaks for itself . They have been around for over 50 years , and will do whatever they have to do to survive- even if it means they have to change their business model . I told my friend why not sell the business to Canadian Tire . I'm sure there is no problems competing with offshore countries ( plus, all the teams will love them ) . On another note , even SP Apparel from Montreal went ahead and reduced their pricing . Everyday , they are getting close-out lists from companies,and their current products are closing out a lot quicker than usual. And other companies like Kamazu are getting more aggressive than ever .
For my own peace of mind , I had to pursue and find out if this rumour that Canadian Tire is purchasing RBK/CCM is true. So i had lunch with a friend of mine who works at Hockey Life . He said that all this competition was unnecessary . Next year, the prices will tumble even more and it makes no sense what they're doing . He said he buys more hockey equipment that anybody else , and he should the the team business from Bauer . I smiled and told him i heard a rumour that Canadian Tire may buy RBK/CCM. He looked puzzled .
Two days later, a Jersey Representative came into my store . He was excited. He took me aside and whispered that the guys from Hockey Life told him Canadian Tire is just about to purchase RBK/CCM. I was confused by the rumour , and this is why i sign this letter anonymously , in order not to start a rumour ....
Anonymous
* interesting stuff ... that is why i thought i would share this with anyone that reads my blog . and trust me i did not write this , words like intrinsic are words i can't lay claim to using :)
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