Saturday, June 11, 2016

Open to Buy

There is a misconception that seems to be running rampant in the golf industry that a ‘push-button’ open-to-buy plan is the be-all, end-all to insuring success at Pro Shop retail. While it would be nice if this were true it simply is not. Before buying the software or placing your financial future in the numbers this type of reporting provides, let’s tear the concept down a bit attempting to understand both its limitations and plusses.

Saratoga National GC


Planned sales + Planned Markdowns + Planned End of Month Inventory – Planned Beginning of Month Inventory = Open to Buy at Retail

Prudent inventory control is obviously critical to ensuring that there is adequate stock on hand to produce the amount of sales that hopefully can be generated. The above formula can be used as a guideline as to how to replenish that number of units and/or dollars but does not pretend to establish what those levels should be.

Being over-inventoried in total units or dollars or owning the wrong type of inventory will determine markdowns and limit cash flow but is only realized by comparing it to what is healthy and then buying or not according to the formula, or more to the point common sense.

 Being under bought will create missed sales opportunities but can only be properly avoided if the Planned part of the above formula is based on solid principles and an analysis and understanding of the shop’s sale history, space and fixturing.

My point is that most shops would certainly be better run using an OTB formula and plan as a guideline as to the coming month’s inventory needs but only once the proper Opening Inventory Level (OIL) is determined, realized and adjusted according to peaks and valleys during the course of the season. The magic push-button formula is the simplest of math that is probably best calculated by hand and then adjusted according to tournament schedules, special orders, off-price opportunities, fast-selling items, mark up variations and count-and-fill categories. Also most pro shops think through they’re buying as a seasonal activity based on number of turns as opposed to a monthly decision based on what usually manifests itself as partial needs.

Another concept that is tossed around in the industry but rarely understood and properly utilized is that of count-and-fill. The phrase immediately brings to mind the maintenance of the proverbial solid shirt program but redefining and instituting its new meaning across all pertinent categories can lower inventories and insure against loss of sales more effectively than open-to-buy reports.

There are many important categories where par levels can be set conservatively and count and filled often so as to reduce needless inventory but have full size runs of adequate selection when needed. Gloves, balls, shoes, socks, peds, rainwear, basic shorts and of course solid shirts are just a few of these categories with solid shirts worthy of an updated look.

A typical solid shirt program five years ago was three shelves in a wall unit with 8-9 skus or colors of a Fairway and Greene lisle or perhaps a Polo pique folded in stacks of six shirts each with one medium, two large, two x-large and one xx-large. The par level included back up if the business demanded. Par levels are best determined using the two-week rule. Keep on hand all sizes per sku in the number of pieces per size that may be sold in a two week period. Most shirt companies that have sold you on the idea of using their in-stock capabilities will fill in between 7-10 working days, which makes two weeks worth of inventory a good working plan. Someone of course needs to take ownership of the program, understand its significance and call the partner vendor with a fill-in once a week.

Five years later a few things have changed. Solid shirts are still of major importance and now include performance or polyester shirts as a category which are best displayed hung on a four way or perhaps shoulder-out by color on a bar in a wall. There are also actually fewer vendors willing to make the financial commitment to in-stock inventories of basic product.

Mendham Golf and Tennis Club

Many facilities are using the solid shirt category as the key ingredient in an effort to build their own brand with private labeling and add significant margin to these sales. Full-Turn has developed an in-stock program of mercerized Supima cotton that includes basic feed stripes as well as solid shirts and has done away with any complicated rules about fill-ins. You can call in whatever you need, have it embroidered and shipped ASAP and be proud that your highest margin shirt in the shop is not being offered down the street since it is your label and it is made of the finest cotton on the planet.

Selling a rain-suit and immediately calling in an order for its replacement should be SOP. I go to clubs that own size-runs of 6 to 8 different gloves. I’ve never heard an argument for more than two that made any sense to me. Owning 40 pair of shorts at the end of June but being out of 36 and 38 is the same as being out of business – the open-to-buy report however may not provide for this fill-in.

Count-and-fill categories properly merchandised and maintaining all other areas of the shop as they need to be re-merchandised and reloaded is a function of open-to-buy that is not explained by the formula or its reports. All aspects of retail are relative to the shop, its space and personnel but I would not invest in OTB software unless my shop was grossing at least 1.5 million/year. I would however make every effort to understand the concept as the valuable guideline and tool that it is.

The principals involved in determining the Opening Inventory Level (OIL) mentioned above and the importance of creating par levels for the proper categories of goods so as to establish the correct planned inventories are developed in the “Merchandise Buy plan Guide”. The importance of basing these planned numbers on the principle of space and an understanding of a healthy turn is the reason I wrote this guide.

Wednesday, May 18, 2016

Traditional goes Casual – An Important Trend

A year ago I posted an entry I called Shoe Time of Yearand since then have participated in a dozen Retail Sell-Through Boot Camps put on by PGA Magazine around the country. The point of the article last year was the following:

Preparing for the new season involves identifying the categories that are most affected by new beginnings. Everything starts with the staff understanding the product and the importance of the category and wanting to discuss their knowledge with the customer.

There are a number of consistent topics that have come up at all the boot camps but the two I want to tie in to this years version of Shoe Time of Yearare the fact that the game of golf is generally becoming more casual and that life-style categories are becoming more important to properly identify as to which are appropriate for your clientele and how best to merchandise them. I was discussing these more casual/lifestyle topics and their significance as points of conversation among everyone in the industry with Greg Lecker at Sawgrass Country Club and he asked me if I was familiar with Canoos. I was not, but quickly became a fan. Boat shoes designed to play golf in made immediate sense to me not only because they perfectly fit the above equation of casual and more life-style product, but because boat shoes have been in my closet and a go-to shoe for me for forty years. Greg introduced me to Matt Freedman and Josh Hannum and this interview is the result.

Matt, Josh we want to talk about the product and the retail potential, but first tell us what inspired you to consider building this timeless and yet unique product?

Craig, like yourself and millions of other Americans, we wear boat shoes and loafers every day of our lives.  Boat shoes as a category have been the #1 selling shoe style in the US for quite some time.  As young professionals, there was rarely a time that we wore anything else.  We found ourselves at times going right from work to the driving range or to our club to try and sneak 9 holes in after work, and there were times when we didnt have traditional golf spikes with us to change into.  So I (Matt) one day got so fed up with both not always having golf spikes with me, or not really WANTING to change into golf spikes that I would never wear otherwise.  So I began playing my rounds in the very boat shoes and loafers that I would wear to the course.   I was very comfortable, and felt like the shoe completed my outfit because it was what I was wearing anyway, but due to the bottoms being flat they would slide severely as I would swing.  So after a rogue hot round in early March in the Northeast in 2009, I went home to my garage and ripped apart every pair of boat shoes I had, went to Home Depot to get the proper tools and began to screw golf spikes into the bottoms.  At first I failed miserably, except for one pair, which I wore for about three weeks worth of rounds and that held up fine.  I shared the idea with Josh, who was a close friend, golfing buddy and worked in the fashion business.  We hit the ground running making pairs for each other and then friends & family who were asking.  After a few months, the orders got to be too large to fulfill making in our garage, so we found several manufacturers around the world to help us.  About 3 years of prototyping, editing and patent filing later, Canoos was born on October 31 of 2012.

As Ive mentioned I dont ever remember being without a pair of docksiders or boat shoes in my closet, the style is as classic as any you could name. You mention on your web site that “Canoos will make sure that if you choose leisure golf apparel, it will be the highest quality hand crafted apparel there is.” Speak to the quality of Canoos if you will and to the obvious comment from the low handicapper about support and grounding.

The quality in our current product the Tour 2.0 is truly second to none in golf.  We can say this confidently as well about our Made in Maine product (launching Fathers Day 2016) because we personally have met the families of the folks who hand sew every pair of our shoes.  The leather is sourced diligently by the founders and so is every component.  From every stitch of thread, every eyelet, every inch of lace, every ounce of rubber, the suede for the shoe bags, the corrugate for the boxes, even down to the last (the mold that the shoe is built around) are all hand chosen. 

The reason it took us so long to build the prototypes and bring the product to market is because boat shoes were not made to play golf in, originally.  The difficult part was taking a shoe that has such a low profile, is so malleable and so casual and totally reconstruct it to stand up to the performance demands of tour professionals.  We made a number of design enhancements to a traditional camp moc style boat shoe like adding an Ortho-Lite insole for added comfort, protection and arch support.  We made the bottom spike-less, but made the bumpy bottom pattern in such a way that it will give you more grip than most spiked shoes in the marketplace.  We can say this, because our tour pros have tested side by side at our HQ and publicly.  We chose a leather that will stand up to dew, and be water repellent.  In summary, the current Canoos Tour 2.0 Shoe as you see it, and the Made in Maine Canoos Clubhouse Shoes will be performance marvels as well as casual travel companions.

 I mentioned your web site which I think is not only well done and informative but fun. The monthly featured club write-up is a particularly unique feature. What other marketing plans can we look for and how do you see your distribution and customer base fleshing out?

This is the most fun I get to have in my professional life other than designing the shoes themselves.  The fact that were in an industry where were able to celebrate relationships, partnerships and folks who respect the heritage of the game we love makes us the luckiest guys on the planet.  Were two young guys who have grinded in corporate jobs for the first 10 years of our careers praying that one day we could work in the golf industry with a product that we both obsess over.  That dream has come true for us, but with that comes an overwhelming responsibility to uphold the traditions, the respect and the honor of the game.  So, the best way we know how to do these things is to research, surface and report on the best parts of the game both on and off the course.  We think it’s equally important for us as a brand to celebrate the things that we love about the game even when were not playing. The best cocktails, the best cigar lounges, the best poker rooms, the best hotdog at the turn, the best cart girls. The little details that we may remember long past the 96 we just shot.  There are clubs, people and elements of this game that the masses dont know about, yet deserve to be celebrated.  Our duty as a brand is not only to give our customers the absolute best quality product and customer service that we can, but to celebrate the lifestyle that were so privileged to live.  We deem this initiative the Canoos Country Club.  It is the digital version of your real life Country Club, where we can virtually go around the world and see things that remind us of why we love this game.  Our goal is to make this website a collection, a general store or mercantile if you will that functions as a digital pro shop based on all of our findings from around the country.  All folks have to do is subscribe to our newsletter to receive content updates like this, and stay tuned on the website for some incredibly big happenings in 2016.

Josh, what are some of the ideas as to how you see this being best merchandised in the shops and what are some of the promotional programs we can expect to see?

As a boutique company heavily focused on our green grass partnerships, we are very sensitive about who the shoes are merchandised with and how. Everything we do from a point of sale display, to our catalogs that ship with our orders, to supporting collateral is “on brand” for us and reflects the nautical and leisure roots of the company. Our best successes have been when our shoes are merchandised with other boutique brands embodying the lifestyle and fashion of the shoes.

Our customers are blown away over the comfort and functionality of the shoes once they try them on, so we are focused on creating seeding programs, trunk shows and fit trials. In addition, we are very excited to partner on tournaments where we can outfit the participants or offer the shoes as gifts for winning long drives and closest to the pins. Most importantly, we aren’t going to spread ourselves thin. We want to create an industry best experience both for our partners and their members.

Canoos has developed product in categories other than shoes tell us about those and perhaps any planned for the future?

Canoos is a shoe company first, but over the years our customers have always asked for more ways to spread the word via product.  We are incredibly humbled and blessed to have folks who actually care to do so!  Joshs background is in global apparel sourcing for one of the largest houses in the world, so he has spent his career honing his expertise for this role.  We take a very similar approach to making other products as we do making shoes.  There are times where we manufacture things ourselves, in some cases we like to partner with other similar type brands who are best in breed to co-label a piece or two.  Our goal is to take our time and only launch things when were as proud to get it on our customer as we are with our shoes.  Things to look for in the future are more styles, colors and types of shoes for men, women and children as well as socks & other companion products for our shoes.  As the brand grows and listens to our customers for feedback and product suggestions,  were really taking an organic, customer first approach by observing what guys are wearing on the course and around the club when we visit our retailers.  The best outfit is the one that the gentleman or lady is confident in.  As our brand grows, you can expect pieces that will be classic & coastal inspired with a focus on fit and comfort.

Canoos were invented to look your best while being incredibly comfortable on AND off the course. In that spirit we vet partnership opportunities to introduce product in core categories that complement the shoes. Moving forward, expect more of these partnerships introduced and more American made products.

Matt, Josh this has been great, tell us about your sales plans going forward and the best way to contact you in order to become partners on Canoos product. What are you plans for upcoming shows?

The trajectory of this brand is 100% a direct result of the talent on our team.  We have a culture of winners that is bred by hard work, family atmosphere, and the tireless focus on our customers.  We put a very strong emphasis on relationships, and focus on strong green grass and independent retailers who really take their brand seriously.  We have always gone above and beyond to support our partners in wholesale with customization options, quick turn arounds, low minimums and a vast display catalog to support sell through and end-consumer experience.  Our goal is to build a personal relationship with each Pro or shop owner who carries us so that person is comfortable having the Founders cell phone numbers in their phones as well. 

There is a wholesale page on our website which goes directly to both founders Matt & Josh & AJ our President for those who are interested in learning more about Canoos. Our emails are also listed below for readers of this blog to reach out directly:

Matt Freedman -
Josh Hannum -
Anthony Lopardo -
Craig Kirchner –

I’ve partnered up with Matt and Josh to provide retail consultation and merchandising ideas to the Canoos sell-in effort at the green grass level and so I’ve added my email to the list of contacts. We want to make the vendor partnership much more than just ship the shoes and hope. The golf boat shoe is a natural at resorts and is certainly a great new idea as a tournament favor. Shoes sales at most clubs are somewhat cyclical until something new happens. Something new that has an incredible heritage is by definition worthy of being taken serious by green grass shops. Once you’ve tried a pair on you will want to teach in them and tout them as this year’s traditional/casual/lifestyle item. Please call (443-309-3005) or email me if you would like to discuss the different programs and ideas that we have to help drive your retail effort.

Sunday, April 17, 2016

Haberdasher at Southern Hills Country Club

When I initially inquired of the principals of the high-end apparel vendors and the directors of the better known clubs who I should be interviewing that provides top notch haberdashery service and product to their members, Cary Cozby’s name came up in every conversation. Cary was an assistant golf professional at Southern Hills Country Club from 1995-2000, prior to which he was an assistant at Oak Tree Golf Club from 1993-1995. Cary played collegiate golf at the University of Oklahoma 1987-1992. He was a PGA Professional at Wichita Country Club starting in 2000 and added CEO responsibilities to his workload in 2005. Cary has since returned to Southern Hills as Director of Golf and was recently selected as the South Central PGA Golf Pro of the Year. This interview is a re-posting of a couple of years ago but I thought a re-posting appropriate with the award inspired video (click here).His reputation among the leaders of the industry is always described in superlatives.

Cary, you have described service as a first commandment of your job title. I am often asked to define service as I speak of it often as a differentiator. I have taken to giving the short answer that exemplary service is service that members and guests leave talking about. I would be interested in your definition.
It would be hard to improve on defining exemplary service as exactly that, something that leaves members and guests talking about it. A couple of comments to add to your definition. Great service is not simply adding staff. We work hard at communicating not just how to do a job but why. “The why” provides a complete understanding and, thus, makes everyone think, which leads to being engaged with everyone we come in contact with during the day. Once a staff member completely understands their role, they can then begin to provide great service.
We talk a lot about anticipation of member needs and also track member preferences: brands, sizes, beverages, etc. We stress the details, and our goal is to have the answer before the question…we also plagiarize the best we can from other facilities or anyone else in the hospitality business. It is the main differentiator in any business, especially the golf industry. We are all selling the same product so why should someone buy from us? Providing a great training program and developing a staff that owns the operation is vital for our success. It takes everyone pulling on the same side of the rope to deliver great service.
Often programs are put in place to enhance service that creates sales and in some cases whole new categories of sales. Have you instituted any such programs?

One of the programs we have recently put into place and coincidentally plagiarized is our “standards testing,” courtesy of the Four Seasons. This program is used on our Outside Service Staff and begins once they have completed their initial training. The test consists of various components, but the main focus is on member interaction/communication, verbal and non-verbal.
Inside the golf shop, we have increased sales by working the corporate angle with our membership. It has really grown and we have found they would rather do business with us than an outsourcing company, and, typically, we beat them on price and definitely on service. We have also expanded into carrying some tennis and fitness apparel, and this has helped steer new traffic into the golf shop. Obviously, once we get this group into the golf shop for the first time, we have the opportunity to make them customers.
The service cultures that you have built require focused leadership and training. Comment on this if you would.

Absolutely. On leadership and training, everyone here is expected to bring something to the table and make the operation better. Inside the shop, the expectation is that everyone should conduct themselves like a head professional and look at the operation from a 360-degree viewpoint. It is something we discuss on a daily basis, mostly on an impromptu situation and not a scheduled part of the day. The word “professional” is taken seriously and something we must earn by how we conduct our business.
Our outside service staff is encouraged to make decisions, and we inquire of them how we can improve service and/or efficiencies within the operation. They always have great ideas that make us better and our operation today is a result of 12 years worth of melting ideas from assistant professionals and our outside staff.
Everyone can be a leader; you do not have to have a title to make a difference.
Vendors should play an important role in the training of staff both in terms of product knowledge and salesmanship. What is your experience with this and your mode of enhancing partnership with those you do business with?

This is an area in the golf industry that has plenty of room for improvement. In the past few years we have asked a few of our key partners to come in after-hours for a product review with our staff. This helps us learn the details about the products we carry and discuss the message we want delivered to the membership. A little extra work equals a win-win for us and the vendor. Too often, representatives make their pitch and sell and do not follow up to check on sell-through, which is significantly more important than anything. When we meet with a rep, we have not only what we brought in last year but what we sold, which includes markdowns. It sure makes it an easier conversation if we are eliminating or downsizing what we buy.
Being comfortable with communicating the products we carry is the key and develops a level of confidence among the staff, which leads to sales. The vendors play a key role in the development of this knowledge and something each of us should expect from our vendor partners.
Obviously it’s early in the season to gauge the success of anything new, but what is the latest sales/service project that you have instituted that you are most excited about?

Well, not anything earth-shattering so far, but it has been enjoyable to watch our staff develop into a great team. We are in our second season with our current staff, and they are terrific. They really understand the importance of wearing all of the hats we must wear and possess a servant’s heart. First class and great service are fad-proof, and I think that is proved in every industry every day.
An important part of genuine service is follow-up. Do you empower your staff in regards to this and/or have specific tasks or follow-up programs in place?

Similar to what we mentioned about our sales representatives, making sure our membership is happy with their purchase is vital for future sales. Each morning I go through the previous day’s sales by reviewing each individual ticket. This allows me to get a feel for every single item we sell and who is buying. Additionally, I personally write a “thank you” not to everyone who makes a purchase of a certain dollar amount, and by doing so it sticks with me to inquire with the members when I see them at the club. We get a lot of positive feedback from this small gesture and believe this is a key component to loyalty amongst our membership. We do follow up with everyone who purchases new equipment with us to make sure they are enjoying their new clubs. Typically this is done by the professional that fit them or the one who is their instructor.
Cary, I really appreciate your time. What would you like to add to this conversation, particularly considering that you are seen as one of the top Haberdashers?

If you would like to maximize your sales potential, look at your shops as a haberdashery and carry much more than the normal golf attire and equipment. We would do about 70 percent of what we do in sales if we didn’t offer lifestyle pieces for men and women, specifically during the non-golf part of our year. Over time, we have been able to get our membership to shop here first and expect to see much more than just golf attire in our shop. Our golf shirt sales diminish following Labor Day, but we sell a tremendous amount of sport/dress shirts, sweaters, jackets/outerwear and trousers. In addition, we have branched out to have a tennis and fitness area in our shop and have been able to create sales with our non-golfing member.
We trust delivering great service to our membership creates a difference between us and the next guy.

The economic climate over the last 3-4 years has been difficult for all business, but, for some, problems are viewed as opportunity. As the service and availability of better product becomes increasingly scarce in other retail channels, the prospect clubs have to provide the best of both to their members is a natural. Cary Cozby obviously sees this as not only an opening but a fundamental part of the job.