by Nicholas Arroyo
Did you know that your shopping habits have the potential to change the tack store business as we know it?
Some will say that’s good for the industry, while others will look at it as a serious threat to the well-established, family-owned horse tack businesses that we have all come to know and love.
As part of some research work for my upcoming book, I stumbled across a disturbing trend that is changing the landscape of the traditional “brick-and-mortar” horse tack shop. The domino effect on local tack shops is astounding and troublesome.
Unless you have been living under a rock for the last 11 years, you have undoubtedly heard of the on-line auction powerhouse called eBay.
eBay has not only been a dominant force on-line, but has also effected many aspects of our global economy. It has provided an avenue for entrepreneurs to start home businesses, established businesses to liquidate excess stock, and consumers to get some reasonable deals at times.
However, it has also, unfortunately, created a community with individuals seeking to capitalize on crazed, bargain-hunting consumers. These individuals also use eBay as a conduit for selling substandard products and knock-offs to unsuspecting consumers just like you.
Here is some background. It is a well-known fact between tack retailers buying at the same volumes that the acquisition costs of name-brand products should be very similar unless there is some sort of exclusiveness or special distribution agreements in play.
Irrespective of closeouts or clearances on products with slight imperfections, acquisition costs should show very little variance.
So why would one tack shop be more affordable than another? It comes down to two variables: the cost of overhead, and what markups retailers feel are required to have a profitable and sustainable business.
So what about those eBay sellers? Why are their prices that much more attractive?
As a general rule and observation, most name-brand products you buy through eBay will land at your door with little or no savings from that of your local tack shop. Once you take shipping costs, brokerage, value added tax (VAT) and other costs into account, you will see what I mean.
It is important to understand and realize that it is very difficult for eBay sellers to buy new, name-brand products cheaper than your local tack store unless they have acquired the product through closeouts or clearances of products with imperfections.
Most of these eBay sellers also have little to no overhead costs, using their barns, garages, or basements as their warehouse and office space. However, once the transaction is complete, expect little to no after-purchase support.
To add to the mayhem, there are a significant number of low quality, no-name, and knock-off products listed and waiting for unsuspecting consumers to purchase. Many of these products have imperfections, are discontinued, or are factory over-runs. To put things into perspective, these are similar to the products you will find at conventional auctions: some will be adequate, some will not.
As a consumer of horse tack or any other equine accessory, it is important to look beyond the price. Now I know how we all love those bargains, but we have to remember that those who own tack stores are here not only to provide consumers with products and services, but to also make a living. It’s as simple as that. Their very existence is based on running a profitable and sustainable business.
It is unrealistic for consumers to solely look at price point and not look at all the other variables that will result in a better shopping experience.
For instance, here are just a few benefits local tack shops provide:
• Skilled and experienced employees that will ensure you get the right product for the right application.
• Superior products and larger inventories.
• A venue for you to view and assess the product first-hand before you buy.
• Variety and selection on particular product lines.
• Products that are suitable to your location or geography.
• Product support and advice.
• Vendor and product demonstrations.
• Clinics, workshops, and seminars.
• Warranties, exchanges, and refunds.
These benefits help consumers become informed, and partially or totally eliminate any purchasing uncertainties. An informed consumer buying at a reasonable price is a happy consumer.
Patronizing your local tack store reinforces the retailer’s commitment to their suppliers and consumers. It builds and nurtures an environment where retailers shift their focus from just meeting their monthly quotas to one where they more eagerly want to please their patrons and win over more of their business (including sales and special offers).
As consumers, we need to remember to look past our inner selfishness and look at this industry for what it is: owning a horse is an expensive proposition. You certainly don’t expect your favourite watering hole to knock 20 per cent off your bill at the end of your night out, so why would you expect a hand-out from your local tack store?
It is imperative that, from time to time, we set aside or discard our bargain-hunting instincts and realize that we can’t buy everything on sale.
As active consumers, our buying habits dictate the current and future successes of horse tack shops that support us and this industry.
Without this understanding, we will all lose in the long run, including the horse tack businesses that we have all come to know and love.
A business analyst and consultant with more than 19 years of experience, Nicholas Arroyo has been sought in both local and international industries for many years. He has played pivotal roles in recruiting, managing, mentoring, and coaching high-performance teams, and is experienced in all aspects of business management and marketing, including business planning, advertising, and merchandizing.
