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Today鈥檚 athlete sponsorships are rife with dangerous pressure, inequality, and unfair compensation. It鈥檚 time for things to change.

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Athlete Sponsorship Programs Are Broken. Here鈥檚 How We Can Fix Them.

On April 16, 2019, David Lama, Hansj枚rg Auer, and Jess Roskelley died in an avalanche on Howse Peak in the Canadian Rockies. All three were on The North Face climbing team.

At the time, the trio was seeking the second ascent of a route called M-16, which had been climbed once, back in 1999. The first ascensionists described pitches of overhanging ice, blinding spindrift, and collapsing cornices that nearly killed one of their party.

But in alpine climbing, unrepeated routes are rare trophies, and Lama, Auer, and Roskelley were some of the best in the world. Why wouldn鈥檛 The North Face give them its blessing? And perhaps the brand was right to do so; according to photos recovered from Roskelley鈥檚 phone, the three made it to the summit. That was before the avalanche.

From left: David Lama, Hansjorg Auer, and Jess Roskelley. (Photos: The North Face)

When I heard the news, I grieved with the rest of the climbing community. In the past few years, I鈥檝e lost two friends to the mountains. This tragedy felt too familiar.

I wondered if Lama, Auer, and Roskelley would have chosen to team up if it weren鈥檛 for the convenience of sharing a sponsor. If they would have picked a less hazardous route if they hadn鈥檛 been vying with other athletes for The North Face鈥檚 limited pool of funding. If they would have turned back earlier had Roskelley and Lama not been so new to The North Face鈥檚 team鈥攐nly about a year each鈥攁nd perhaps still trying to prove themselves. If they would have called it sooner if not for the expenses already incurred.

Hadley Hammer, Lama鈥檚 girlfriend and an eight-year member of The North Face ski team, believes Lama鈥檚 motivations on Howse Peak were purely intrinsic. The North Face global sports marketing director Jamie Starr added that, for many years, the brand has had a rigorous team peer review process for expeditions and is careful to never put any external pressure on athletes to take undue risk鈥攊ncluding on Howse Peak. Still, these are familiar worries for many athletes. And there are other concerns with the current sponsorship system, particularly for winter ambassadors who have only a short season with uncertain conditions to accomplish many contractual obligations, Hammer said.

鈥淭wo of my three injuries occurred while filming,鈥 she explained, noting that it鈥檚 impossible to say whether they would have happened without a camera present. Both injuries left her with medical debt, which she was left to pay on her own. 鈥淲hile there isn鈥檛 direct pressure to perform crazy stunts, there remains an inevitable pressure,鈥 she said. 鈥淎nd I don鈥檛 think it has to be that way.鈥

When these three men died, The North Face, by all accounts, rose to the occasion, footing the bill for loved ones鈥 flights and travel expenses. Providing therapy and support. Paying for the funerals.

None of this was required鈥攁thlete contracts rarely mention, let alone cover, such expenses. And all of it is certainly costly to a brand. The North Face stepped up, said Hammer. It did the right thing, handling it all in just the right way.

But while members of The North Face team certainly grieved, the brand, through no fault of its own, ultimately emerged looking like a hero, its reputation untarnished.

Stories like this highlight the imbalances that exist in the sponsorship equation. Today, controversy accompanies everything from how athletes are selected, to their role in hitting a brand鈥檚 DEI targets, to the contracts they sign. As that equation becomes more critical to the success of outdoor brands, it may be time to rethink it.

A Broken Model

When news broke of the tragedy on Howse Peak, Horst Eidenm眉ller, a law professor at the University of Oxford, was in the midst of examining some of the same questions about the hidden pressures athletes face. In August and September of 2018, he conducted interviews with 40 sponsored athletes across a range of adventure sports, from alpine climbing to big-mountain skiing to freestyle motocross, and later published his findings in the Marquette Sports Law Review.

Eidenm眉ller鈥檚 conclusion: 鈥淭hese contracts are unbalanced,鈥 he said. 鈥淪ponsors鈥攍et me be blunt鈥攖hey are ripping off the athletes.鈥 The trouble is that athletes are easy prey; most interviewees told Eidenm眉ller that they鈥檙e more passionate about their sports than they are about money. That lets brands get away with paying them, on average, $5,000 to $20,000 a year for what often amounts to a quarter- to half-time job. That鈥檚 barely enough to cover their training, health care, avalanche education, and other expenses. Even top-tier athletes like Alex Honnold, who make salaries somewhere in the six-figure range, are a steal, Eidenm眉ller said.

That鈥檚 because marketing today relies heavily on personality, dynamic storytelling, and dialogue, explained Jonathan Retseck. Retseck is a founder and managing partner of talent management firm RXR Sports and represents an impressive roster of outdoor industry bigwigs, like Jimmy Chin, Alex Honnold, Scott Jurek, and Kate Courtney. 鈥淲e鈥檙e also seeing more and more consulting work integrated into [athlete] contracts,鈥 Retseck added, explaining that brands increasingly rely on athletes to help develop new products, provide design input, and shape marketing campaigns. 鈥淎ll of that is extremely valuable to a brand.鈥

Just how valuable? From his analysis of annual revenues and marketing budgets of some top sponsors, Eidenm眉ller estimated that big international brands are making as much as millions of dollars in additional revenue from their household-name athletes. Compared to that, he said, even a six-figure salary is a paltry sum.

鈥淭he picture that emerges is that of a market tilted heavily towards satisfying the interests of the sponsors,鈥 Eidenm眉ller said.

Thanks to the COVID-19 boost, the outdoor sector is booming. That influx of revenue has allowed more brands to create athlete teams or expand existing ones. And thanks to the recent push for brands to improve representation of diverse adventurers, athlete teams have been hauled even further into the spotlight.

After all, athletes are the faces of a brand. They鈥檙e also usually inexpensive, on short contracts (typically just one to three years), and easy to turn over to meet the needs of the day.

According to two former La Sportiva athletes who asked to remain anonymous for fear of being passed over for future sponsorships, La Sportiva dropped about half its North American athlete team鈥攃lose to 45 people鈥攅arlier this year via a mass email. A number of the new 2021 La Sportiva athletes are people of color and best known for being outspoken on social media on issues of race and social justice.

鈥淲e reviewed our current situation and future plans and ultimately made some tough calls,鈥 said Quinn Carrasco, marketing manager for La Sportiva North America. 鈥淚t鈥檚 been a huge learning process.鈥 The brand primarily offers athletes one-year contracts, requires regular social media posts in exchange for gear, and offers no monetary compensation to most ambassadors. La Sportiva dropped a similar percentage of athletes in 2020. Carrasco said it鈥檚 hard to let ambassadors go but that turnover is an inevitable part of any athlete program and will naturally fluctuate from year to year.

Steve House, a legendary alpinist who now consults for brands building athlete teams, explained that this high-quantity, high-turnover system does make sense for some brands.

鈥淭he thing is that you have no idea who鈥檚 going to pan out,鈥 he said. 鈥淵ou have 100 athletes and one of them is going to be Alex Honnold, and you have no idea which one.鈥

Mentorship Over Sponsorship

Scarpa CEO Kim Miller, who is Asian American, also noticed a hole in the demographics of Scarpa鈥檚 athlete team in 2020. But for Miller, the answer wasn鈥檛 to bring on a host of green, unvetted athletes.

鈥淭he first thing I realized was that there just aren鈥檛 many people of color in our outdoor sports, industry, and community,鈥 Miller said. 鈥淎nd the second thing is that you can鈥檛 just walk into a field and say, 鈥楪row, plants, grow!鈥 These things really have to be developed.鈥

For Miller, the answer was to start a mentorship program for up-and-coming athletes. The program would allow the brand to both maintain existing relationships with its athletes and give new athletes the resources they need to navigate the industry, advance in their respective sports, and market themselves effectively.

Called the Scarpa Athlete Mentorship Initiative, or SAMI, the six-month program matches each mentee with an existing Scarpa athlete. It also provides mentees with gear and networking opportunities. However, mentees aren鈥檛 required to use or post about Scarpa gear; there are no strings attached, Miller explained. 鈥淭his was never about creating more athletes on our team.鈥

Aidan Goldie, a science teacher, ski mountaineer, and diversity advocate based in Carbondale, Colorado, was selected as part of the inaugural SAMI class. He and his mentor, Chris Davenport, ski together and text on a regular basis.

AtAthlete sponsoshiphlete sponsoship
Scarpa mentee Aidan Goldie skis with his mentor, Chris Davenport, near Aspen, Colorado. (Photo: Fred Marmsater)

鈥淚t鈥檚 a really intentional program that makes sure these athletes from diverse backgrounds are set up for success,鈥 Goldie said. 鈥淚t鈥檚 given me a lot of connections in the industry. And Chris has been a great resource.鈥

The mentorship program, he said, is doing exactly what it set out to: bridge historic inequities by lifting new voices up.

The Third Model

Over the past year, a third model of sponsorship has emerged: eschewing the somewhat elitist idea of the athlete altogether and instead sponsoring changemakers from diverse backgrounds who can speak to new audiences and untapped markets.

Backcountry pioneered that model when it launched its Breaking Trail program this April. Instead of scrambling to start new relationships with people of color, which could come off as tokenizing, the brand moved to sponsor seven prominent advocates and community leaders with whom it had already built close relationships.

While plenty of outdoor brands had partnered with culturally diverse advocates for occasional campaigns, this reimagined take on sponsorship broke new ground. Ambassadors were selected not based on past ascents or expeditions, but on their nonprofit involvement. And the brand intends to add new ambassadors and build upon the program in the future.

Diversity Without Exploitation

Widening the definition of who can be a sponsored athlete is certainly a big step when it comes to inclusivity, but it doesn鈥檛 solve the power imbalances that Eidenm眉ller uncovered in his research. And some athletes believe the shift could exacerbate those imbalances.

After all, the current structure tends to provide less compensation to athletes who 鈥渁chieve鈥 less. But today, the role of an athlete isn鈥檛 just to tag summits, and some, like Andrew Alexander King, worry that the other, equally important work will go undercompensated.

King, who is African American, is a sponsored mountaineer pursuing the Seven Summits.

鈥淚 think athletes of color are often taken advantage of,鈥 he said. Part of that is because, due to historic inequities, athletes of color are less likely to have had the resources to understand how the sponsorship system works and negotiate effectively. 鈥淭hink of it like a race,鈥 he said. 鈥淎thletes of color have been standing outside the stadium, and the world has just let them in. But the race has already started, and by now, an athlete of privilege is already two laps ahead.鈥

In that sense, if the athlete is climbing or skiing at a lower level than an athlete from a privileged background, it鈥檚 perfectly reasonable, and shouldn鈥檛 result in fewer opportunities.

Plus, there鈥檚 the matter of supply and demand, King said. Athletes of color are few and far between, and right now an image of a Black man climbing in branded gear is extremely valuable. Many boilerplate contracts, which include lifetime licensing for images, don鈥檛 reflect that. So, when King talks to a potential sponsor, he starts by demanding changes.

鈥淵ou can have my photos for one year,鈥 he said. 鈥淎ny time after that you have to re-sign or go through contracts. If you put my face up in 2023 without my consent, you鈥檙e profiting off that, which is exploiting my story and my culture to benefit your profits.鈥

Brands, he said, would do well to listen. Or, better yet, offer athletes of color what they鈥檙e worth in the first place.

Calling for Change

King鈥檚 negotiations often catch sponsors by surprise. That鈥檚 because, Eidenm眉ller said, brands hold all the power in those conversations; they鈥檙e not used to negotiation.

Mentorship, 脿 la Scarpa鈥檚 SAMI program, could help bridge that power gap and give young athletes the tools they need to negotiate with confidence. More transparency around contract terms and salaries, which are currently guarded as 鈥減roprietary,鈥 would also give athletes and brands the information they need to reach fair terms.

While Eidenm眉ller believes athlete contracting would most benefit from regulatory oversight, he said the faster, more practical solution is for brands to take responsibility for the outsized power they hold over athletes. The onus should be on them to carefully spell out all the implications for new athletes or ambassadors, and to offer the stability of longer contracts, increased and stable financial compensation, and/or health insurance whenever possible.

Where the Responsibility Lies

As for limiting risk?

鈥淚 think athletes bear some responsibility to know their own limits, and to know them before they鈥檙e in a place where those limits are being tested,鈥 Hammer said. 鈥淧lus, it鈥檚 the athletes [who are] coming up with these ideas. We鈥檙e asking the brand to support us. Even if The North Face or other brands scaled back [on their interest in dangerous expeditions], I don鈥檛 know if we would.鈥

Athlete sponsorship
Backcountry launched its new ambassador team, the first of its kind, this April. (Photo: Wyn Wiley/Pattie Gonia)

Difficult realities are easier to absorb if we have someone to blame. Preferably, a faceless entity with deep pockets. But deep down, I know Hammer is right.

At least one of the friends I lost in the mountains was chasing a personal speed record at the time of his death. Eventually, he hoped to be sponsored. But both friends had gone out, first and foremost, in search of the sublime. In a world without funding, social media, or external gratification, they would have done it anyway.

As La Sportiva鈥檚 Carrasco said, 鈥淯ltimately, our goal with sponsorship is just to align projects鈥攚e want to work with people who are highly motivated. When our goals align with theirs, that鈥檚 when we can help each other out.鈥

But even if brands don鈥檛 push their athletes or demand certain objectives, they are still in the business of selecting and paying people with enough passion and grit to push those limits. For that reason, contracts need to clearly stipulate who is responsible when the worst happens, Eidenm眉ller said. If someone gets injured or sick, how long until they have to be performing again? If someone dies in the mountains, who foots the bill?

The Future of Sponsorship

As brands get bigger and add to their athlete rosters, more people than ever before will be sponsored in some way, Eidenm眉ller said. The market will grow more competitive as it crowds with voices talking up their own achievements鈥攁nd more jaded as audiences wisen to influencer marketing, which right now, House said, is likely coming off the peak of its popularity.

鈥淚 think the reality is that social media influencers don鈥檛 have much influence,鈥 he said. 鈥淎udiences today can see right through those sponsored posts. The reality is that they just don鈥檛 work.鈥 In the future, he expects the age of the social media influencer to fizzle, and for authenticity to once again dominate the playing field.

This presents a golden opportunity for brands to get ahead of the shift and select athletes who are both champions of their sport and genuine pillars of their community鈥攏ot just salespeople. To do that right, they鈥檙e going to need to allocate more marketing budget to find the right ambassadors, build quality relationships, and compensate them like they would any other employee, said King.

Quality over quantity鈥攊n how athletes engage with their communities and how brands treat their ambassadors鈥攊s about to become the rule of the day. And the brands that figure that out fastest will come out on top.

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Summer Trade Shows: Who鈥檚 Attending Outdoor Retailer and the Big Gear Show? /business-journal/trade-shows-events/summer-trade-shows-whos-attending-outdoor-retailer-and-the-big-gear-show/ Thu, 27 May 2021 05:09:55 +0000 /?p=2567767 Summer Trade Shows: Who鈥檚 Attending Outdoor Retailer and the Big Gear Show?

As Outdoor Retailer and The Big Gear Show prepare for in-person events this summer, many in the industry are still debating whether to attend

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Summer Trade Shows: Who鈥檚 Attending Outdoor Retailer and the Big Gear Show?

The past 14 months have been a dark season of disconnect for many in the business of outdoor. As much as anything else, we’re all likely to remember 2020 as the Year Without Trade Shows鈥攖he year we couldn’t hug, shake hands, or do business the way many of us prefer: in person. For an industry that prides itself on connection and compassion, the sting has been vivid.

The good news is, it’s almost over. The Outdoor Retailer (OR) Summer Market is coming back to Denver, Colorado, on August 10-12, and registration is currently open. The Big Gear Show (BGS), which delayed its inaugural event last year, is set to stage just a week earlier, August 3-5, in Park City, Utah. After a year of red Xs on the calendar鈥攃ancelled events, dashed plans鈥攆olks are once again buying plane tickets and dusting off booth hardware, getting ready to see each other. There’s more than a modest buzz of anticipation in the air.

The time away has changed things, however. We’re not fully out of the pandemic yet, and in the months we’ve spent apart, most of us have adapted to new ways of doing business. Budgets have already been set for the year. Some people are eager to meet face-to-face as soon as possible, while others are still wary of crowds, or restricted by company travel bans. This year, a big question on everyone’s mind is who, exactly, will be at the trade shows?

In a typical year, almost no one would question whether the big industry players like Patagonia, The North Face, or Black Diamond would show up to our national shows. Those booths have been the anchors of such events for decades.聽

We’re living through the shoulder season of the most disruptive global crisis in a century, though, and the August shows are by no means a return to “normal,” as we hoped for so long they might be. At this point, it seems the only way to get a sense of who’s going鈥攁nd who鈥檚 not鈥攊s to pick up the phone and start calling brand leaders, asking directly whether they plan to attend, yes or no.

Which is exactly what we did.

A Quick Disclaimer

First things first: ten weeks is a long time. Trying to pin down a comprehensive, definitive list of who’s attending the shows, nearly three months before they stage, is impossible. Over the course of the summer, as the situation develops, brands can and will change their minds about attending or skipping one show or the other. It’s just too soon to tell.

But we have to start somewhere. To begin piecing together a picture of the attendee lists, we reached out to dozens of key industry players to ask about their plans. Some dodged our calls and emails (no hard feelings). Others outlined their thoughts in lengthy manifestos. Some wanted to talk, but felt they couldn’t, as in the case of a notable hardgoods brand that refused to go on the record for fear of upsetting its specialty retailers. Response, in other words. was all over the place.

As of today, our list of exhibitors attending or skipping the shows鈥攕ubject to change at any moment鈥攊s more comprehensive than what OR and BGS directors have published, but it’s still miles from complete. Everything we know so far is outlined below.

Which Brands Are Exhibiting at the Shows?

Outdoor Retailer鈥檚 latest exhibitor list, released today, includes about 150 brands, though show director Marisa Nicholson told us previously that more than 300 brands are registered with 鈥渕ore contracts coming in daily.鈥

Brands exhibiting at Outdoor Retailer (confirmed by OR leadership): 4ocean, 国产吃瓜黑料 Medical Kits, Aetrex, Airhead Sports Group, Aloe Up Suncare, American, Alpine Club, American Backcountry, Amundsen, Avalanche, Backpacker’s Pantry, Bertucci Watch, Big City Mountaineers, Bison Designs, Body Glide, Bridgford Foods Corporation, Brightz Ltd., Brookwood Companies Inc., brrr, Buck Knives, Inc., Bula, Camp Chef, Carson Optical, Centric Software, Chaos / CTR, Chums, Coala, Cougar Shoes, CRKT, CWR Wholesale Distribution, Dakine Equipment, Dakota Grizzly, Dansko, Disc-O-Bed Retail, Inc., Dometic, Downlite, Dr. Bronner’s Magic Soaps, drirelease, Duraflex, Earth Shoes, Ecovessel, U-Konserve, Equip, Everest Textile Co., Falcon Guides, Farm to Feet, Flexfit, Flylow Gear, Fox 40 USA, Frost River, GCI Outdoor, Geckobrands, Glacier Glove, Goal Zero, Gore-Tex, Grabber Inc. / Heatmax, Groove Life, G-Shock, GSI Outdoors, Hans Global / Pacific Fly, Hurley, Igloo, Ignik, UCO, Morakniv, Esbit, Pedco, ITW Nexus, Jambu & Co., Jetty, JTreeLife, Kavu, Inc., Kijaro, Killtec NA, Klean Kanteen, Klymit, Kokatat, Kokopelli, Komperdell Sportartikel GmbH, Korea Outdoor & Sports Industry Association, Labtex Co., Lamo Footwear, Ledlenser, Liberty Mountain, Lifeline First Aid & Fifty Fifty Bottles, Lorpen North America, Lowa Boots, Masterfit Enterprises Inc., Milliken & Company, Minus33 Merino Wool Clothing, Mountain and Isles, Mountaineers Books, Xtratuf, Mustang Survival, Nanga / Tomoyuki Yokota, Natural Tribute, Nomadix SPC, Ocun NA, Optic Nerve Eyewear, Osprey Packs, Otis Eyewear, Otte Gear, Outdoor Products, Outdoor Sports Insurance, Outerknown, Peak Refuel, Pendleton, Poler, Princeton Tec, Propet USA, Purnell, Qalo, QuietKat, Rab, Reusch USA/TruSox, Rome Industries, Salty Crew, Santero, Sawyer Products, Scully, Shwood Eyewear, Skratch Labs, SMC PMI, Solstice Watersports, Sperry, Sport Hansa, Spyderco, Stansport, Sterling Rope Co., Storm Care Solutions Ltd., Storm Creek, Sun Company, SureFire, Sustainable Down Source, tasc Performance, The Landmark Project, The NPD Group, Thermore, Tilley Endurables, Tincup Mountain Whisky, Trango / eGrips, Turbo Tent., Tweave, ust gear, Vandoit, Wallaroo Hat Company, Water Sports, Watershed, Western Mountaineering. Westfield Outdoors, Wild Tribute. Wolverine Footwear and Apparel, wow watersports / Big Mouth, Zippo Manufacturing.

The Big Gear Show confirmed that more than 100 brands have registered out of a possible 250 on the show鈥檚 invite-only list. We were able to get our hands on an abbreviated roster, which event co-founder Sutton Bacon said is merely a snapshot of the show’s full makeup.

Brands exhibiting at The Big Gear Show (confirmed by BGS leadership): Aire, Aqua-Bound, AquaGlide, Astral, Barebones Living, Bending Branches, Bike Exchange, Black Diamond, CamelBak, Camp Chef, Diamondback, Eddyline Kayaks, Eldorado Walls, Esquif Canoe, Eureka, Fat Chance Bicycles, Five Ten, Giro, Goal Zero, Grand Trunk, Hydrapak, Jack Wolfskin, Jetboil, Kleen Kanteen, Klymit, La Sportiva, Liberty Mountain, Malone Auto Racks, Miir, Ocean Kayak, Old Town Canoe, Osprey, Outdoor Research, Oru Kayak, Petzl, Pinarello, POC Sports, Primus, Princeton Tec, Rumpl, Scarpa, Seattle Sports, SOG Specialty Knives & Tools, Stan鈥檚 NoTubes, Sterling Rope, Suspenz, Swarovski Optik, Tahe Outdoors / SIC, Tern Bicycles, Troy Lee Designs, Wahoo Fitness, Wenonah Canoe, Yakima.

Several of the industry鈥檚 largest brands have confirmed they鈥檙e skipping both shows, including Big Agnes, Marmot, Merrell, Mystery Ranch, Nemo, Outdoor Research, and Patagonia. And two companies we spoke with鈥擣j盲llr盲ven and Lifestraw鈥攁re still undecided, though Lifestraw says it would likely attend only one.

Several brands did not respond to repeated requests for comment, including Smartwool, Mountain Hardwear, and Keen, among others.

One major player鈥擳he North Face鈥攑resented a curious puzzle in our reporting. A company representative last week said that the brand is “not participating in any major trade shows, including the Summer Outdoor Retailer Show, in the near term.” Yet OR’s partial exhibitor list, released today, named the company as one of the confirmed players.

When asked for clarification, Nicholson said, 鈥淲e’re in ongoing conversations with a lot of brands around creative ways they can participate in the show and what that looks like this year. The North Face is one of those brands, and we’re excited they are going to take advantage of opportunities provided at Outdoor Retailer to support specialty retailers and to engage with the community on important, relevant initiatives that help the industry move forward.”

At press time, multiple executives at The North Face had not responded to repeated requests for clarification.

Directors for both shows have stressed that comprehensive exhibitor information, including show floor plans, will be released soon. The Outdoor Retailer list is coming in mid-June, according to Nicholson, while The Big Gear Show’s list will be published in the next month or so, said Bacon.

The North Face presented a curious puzzle in the course of our reporting. A company representative said the brand is “not participating in any major trade shows in the near term,” yet the company showed up on Outdoor Retailer’s list of exhibiting brands. Repeated requests for clarification were met with silence from the company. (Photo: Courtesy)

Why Some Brands Are Dead-Set on Showing Up

In speaking with more than a dozen of the industry’s largest brands about their reasons for prioritizing the trade shows this year, no explanation came up more frequently than the issue of community support.

“There鈥檚 an awful lot of relationship value and passion that can鈥檛 necessarily be measured, but that will have long-term benefits,” said Lowa general manager Peter Sachs in reference to Outdoor Retailer, which the footwear brand plans to attend. “From a purely commercial perspective, it鈥檚 late in the [buying] cycle. For us, our deadline [for Spring ’22 product] is about a week after the show. But I鈥檓 not looking at it from a commercial perspective. It鈥檚 not like I鈥檓 walking out with purchase orders anyway; I鈥檓 walking out with handshakes, pats on the back, that kind of thing. For me, it doesn鈥檛 matter if it鈥檚 in June or August.”

Sachs estimated that he’s going to “overspend compared to the commercial value of the show,” but reiterated that, for his brand, attending Outdoor Retailer is a calculation that goes beyond dollars and cents.聽

“We want to show respect for the dealers who do attend, re-engage relationships with industry partners, get real products in front of buyers and trade press, present the company’s updated branding and marketing, and start to process the emotional parts of resuming our trade show schedule so we can get ready for the January ’22 show,” Sachs said.聽

Others like Jeff Polke, co-president of GCI Outdoor, echoed similar sentiments.

“It鈥檚 been 22 straight years that we鈥檝e been at Outdoor Retailer,” said Polke. “It鈥檚 been such a big part of growing my company that I wouldn’t feel right missing the show.”

He added that, because so many businesses are having problems with their supply chains and budgets, he understood the argument for skipping the trade shows for financial reasons. Still, he said, “it鈥檚 a small price if you do it right.”

“Get a smaller booth,” said Polke. “Make it work. Some of these brands need to step it up and show everyone that the trade show industry is still valuable. We can鈥檛 forget everything that made the outdoor industry what it is. The shows are part of that. There鈥檚 value in face-to-face. We have to go back to who we are as humans, shaking hands and saying thank you for your business.”

Respect for retailers was another topic that came up repeatedly in our conversations with brands. For the better part of a year, after the lockdown period of the early pandemic, specialty retailers across the country kept their doors open to customers, maintaining face-to-face relationships with the industry鈥檚 consumer base.

“These retailers have been meeting with consumers out on the front line for a year, while we鈥檝e been hiding behind our Zoom screens,” said Sachs. “We owe it to them.”

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A Glimpse into the Future of Outdoor Footwear Innovation /business-journal/brands/take-a-glimpse-into-the-future-of-outdoor-footwear-innovation/ Tue, 27 Apr 2021 03:49:06 +0000 /?p=2567929 A Glimpse into the Future of Outdoor Footwear Innovation

We checked in with a handful of core footwear makers to find out what material and design innovations they鈥檝e got in store for this year and beyond

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A Glimpse into the Future of Outdoor Footwear Innovation

Outdoor footwear innovation continues to accelerate at a steady pace, and nowhere is that more evident than in the category鈥檚 sustainability practices.

Several brands have introduced, or will soon introduce, shoes that are recycled from other shoes or upcycled from other products, and others are debuting biodegradable shoes.

To find out what innovations are happening in the category, we checked in with several outdoor footwear makers about the material and design advancements they plan to debut either this year or next. The brands listed below are just a sampling of industry players that will be exhibiting their innovations at this summer鈥檚 trade shows, but they’re illustrative nonetheless of exciting happenings in footwear innovation across the outdoor space.

One thing seems clear: as consumers continue to demand greener products, brands are answering the call.

Hoka One One: Anacapa

Hoka鈥檚 all-new hiker set to hit shelves July 1, the Anacapa, will be available in mid- and low-cut silhouettes. The Anacapa, along with several of Hoka鈥檚 other hiking shoes, features more recycled materials in its upper construction, including Gore-Tex fabric with a leaf bootie, which is designed with 45 percent recycled content by weight. The Anacapa 鈥渦tilizes several recycled materials and marks a step forward in our effort to bring more sustainable practices to our manufacturing and business,鈥 Colin Ingram, director of product at Hoka One One, said.

鈥淎t Hoka, we’ve been making an increased effort to be aware of the impact our manufacturing process has on the planet, as well as to take concrete steps to mitigate that impact,鈥 Ingram added. 鈥淥f course, we are not the only brand trying to improve our stewardship of the environment. Consumers are demanding that brands act responsibly, and there is increasing recognition in the industry of the urgency with which we need to act to conserve and protect our home. I don鈥檛 think this trend is going away鈥攏or should it鈥攁nd you will see brands increasingly assessing where and how their shoes are made and taking steps to reduce waste and mitigate our effect on the climate.鈥

Hoka Anacapa
Hoka’s new Anacapa hiker features recycled materials in its upper construction, including a leaf bootie designed with 45 percent recycled content by weight. (Photo: Courtesy)

Keen: Howser Harvest/Elsa Harvest collections

Keen has taken big strides in its sustainability efforts, even going so far as to publicly challenge other footwear brands to go PFC-free. The company is upping its sustainability game this year and next with two collections鈥攕et for release between November ’21 and April ’22鈥攖hat include shoes made from old car seat leather and coffee grounds. Keen鈥檚 Howser Harvest, Howser Harvest sandal, and Elsa Harvest collections will include these materials, part of the company鈥檚 鈥detox journey鈥 that it鈥檚 been pursuing for the last seven years.

鈥淭his detox journey started around 2014 with the belief that we need to do more,鈥 said Erik Burbank, VP of the Keen Effect, the company’s corporate social responsibility (CSR) program. 鈥淲e wanted to focus on taking the toxins out of our supply chain. We鈥檙e all about experiencing the outdoors and the mental and health benefits of being outside. The idea of our products causing human and planetary harm was contrary to our core beliefs. We dug into this issue, and what we found was that those PFCs were being applied on everything, so we started along this journey.鈥

KEEN
Keen’s newest offerings, sustainably designed from end to end, incorporate old car seat leather and coffee grounds. (Photo: Courtesy)

Mammut: Aegility Pro

Though Mammut won鈥檛 launch the Aegility Pro until spring 2022, the brand is excited about the product, which 鈥渄rastically minimizes the number of parts and steps used through a revolutionary design, thus reducing the carbon footprint,鈥 said Christoph H眉hnerbein, Mammut鈥檚 head of product management footwear. Images and details of the product are under embargo until Mammut鈥檚 global sales meeting in May.

鈥淭o describe this is not easy,鈥 H眉hnerbein said. 鈥淵ou have to see the shoes and the concept, and most importantly, try them on. We strongly believe in taking a step towards more sustainable footwear with this patented design. Above all, sustainability through innovation without compromising functionality is an important guiding principle.鈥

Salomon: Index.01

Salomon鈥檚 newest offering, the Index.01, which hit shelves last week, is a recyclable, performance-oriented road running shoe. The brand says the shoe is 鈥渢he result of three years of research and development at Salomon鈥檚 Annecy Design Center in the French Alps, developed to reduce material waste and lessen the environmental impact of footwear by using circular lifecycle principles. The Index.01 is the latest project from Salomon鈥檚 Play Minded Program, the brand鈥檚 ongoing sustainability initiative.鈥

Becky Marcelliano, outdoor marketing manager for Salomon North America, said 鈥淪alomon鈥檚 Index.01, officially launching in North America on 4/22, demonstrates the value and capabilities of circular economy principles. Salomon will continue innovating with this focus.鈥

Marcelliano said Salomon鈥檚 new factory in Annecy, France, is a game-changer for the brand鈥檚 sustainability and circular lifecycle ambitions, as the new facility will provide 鈥渓ocalization, reduced transportation lines to our European markets, and better control of the process.鈥

Salomon Index01
Salomon’s new sustainable running shoe is the result of three years of R&D. (Photo: Courtesy)

Scarpa: Mojito Bio

The Italian footwear brand Scarpa鈥檚 big push this year is B Corp certification. One example of this pursuit in action is the May ’21 launch of the Mojito Bio, made with a “sugarcane-based EVA midsole that provides cushioning and is 100 percent biodegradable,” as well as the incorporation of an “innovative new biodegradable natural rubber,” which the company says is the first of its kind on the market.

The shoe鈥檚 upper is constructed with Bio Knit Fabric, a breathable material made from bamboo-derived fibers. The Bio鈥檚 lining and laces are also bamboo-based. Scarpa says all other components have a vegetable base and construction uses water-based, non-polluting adhesives. The shoe comes with recycled packaging, too.

鈥淭his project was driven by Scarpa鈥檚 desire to not have its shoes last for decades or hundreds of years in landfills, as is the case with conventional footwear today,鈥 the company said. 鈥淲ith Americans throwing away more than 300 million pairs of shoes a year, the compounding concern is obvious. Scarpa chose to pioneer this effort with its Mojito, which is its highest-volume selling shoe as a company. It plans to integrate these biodegradable materials technologies into more of its footwear in years to come. This effort also ties in a larger direction for Scarpa as a company to be more sustainably minded.鈥

Scarpa Mojito
Scarpa’s Mojito Bio is made with a “sugarcane-based EVA midsole that provides cushioning and is 100 percent biodegradable.” (Photo: Courtesy)

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Scarpa鈥檚 Kim Miller Pulls Back the Curtain on B Corp Certification /business-journal/issues/scarpas-kim-miller-pulls-back-the-curtain-on-b-corp-certification/ Sat, 10 Apr 2021 01:02:08 +0000 /?p=2568009 Scarpa鈥檚 Kim Miller Pulls Back the Curtain on B Corp Certification

The North American CEO of the Italian footwear brand discusses how his company is taking its sustainability efforts to the next level

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Scarpa鈥檚 Kim Miller Pulls Back the Curtain on B Corp Certification

As the CEO of Scarpa North America, Kim Miller is playing a critical role in helping the Italian-based footwear brand become a certified B Corporation, a goal it hopes to achieve by 2022.

For Scarpa to attain the highest international standards of sustainability, the brand announced recently it has targeted numerous actions as part of this process. The company鈥檚 lengthy to-do list鈥攕ome of which has already been accomplished鈥攊ncludes cutting CO2 emissions, converting company facilities to renewable energy, sourcing and producing more sustainably, and training employees to become 鈥渟ustainability ambassadors.鈥

One especially intriguing item on the company鈥檚 checklist is next month鈥檚 launch of a fully biodegradable shoe that includes a biodegradable performance rubber sole, the Mojito Bio. According to Scarpa, 鈥渁t the end of its life, 85 percent of the Mojito Bio will decompose after 450 days in a landfill. Shoes made with conventional materials, by contrast, take 40 to 50 years to decompose, and the midsole of many running shoes can last up to 1,000 years in landfill conditions.鈥

SCAPRA Mojito Bio
SCAPRA’s Mojito Bio is the first 100 percent biodegradable shoe with a performance rubber sole. (Photo: Courtesy)

At the same time, Scarpa, which was founded in 1938 and has been owned by the Parisotto family since 1956, is pushing forward on other initiatives that aren鈥檛 directly involved with the B Corp certification process but support the brand鈥檚 ethos of sustainability, inclusion, and other ideals.

For example, Scarpa NA, which is based in Boulder, Colorado, is heavily involved in the brand鈥檚 Athlete Mentorship Initiative, which 鈥渆xpands our community to include more people of color, LGBTQ, and people with disabilities,鈥 Miller said.聽

To better understand why Scarpa wants to become a B Corp and how it plans to get there, we spoke with Miller, who took us behind the scenes of this process. Below is an edited transcript of our conversation.

Why did Scarpa embark on this B Corp certification journey?

We鈥檙e still a family-owned Italian business, and our values are still based on the things that they鈥檝e always been based on鈥攎aking good products, taking care of people, trying to be sustainable, and giving back to our community. B Corp certification is important for understanding everything we do in the business, starting with our impact on the people who work for us, the people in our community. It鈥檚 about measuring our global impact鈥攅conomically, environmentally, socially. It鈥檚 a way to analyze that we鈥檙e capable of making that commitment to sustainability, that we can articulate that commitment, and that we can have accountability to that commitment. B Corp certification is a big endeavor. It鈥檚 all-encompassing, and it鈥檚 a proud move for any brand.

What鈥檚 the heaviest lift or biggest obstacle in this process?

Nothing in and of itself is a major hurdle. We鈥檝e been doing a lot of these things for a long time. We recycle everything. We introduced the first biobased-material ski boot in 2009. What鈥檚 most challenging is taking the time to go through the steps needed for the certification. It鈥檚 a huge time commitment, and it鈥檚 especially challenging as a global brand. There is a lot of analysis around our supply chain, suppliers, and materials.

Has the B Corp certification process required additional staffing at the brand, either globally or in North America?

Headquarters has added more people, and in Italy alone, there are 16 category leaders in the B Corp certification process on both the production and the business side. But there鈥檚 also been an indirect need for additional people because everybody is spending more time on this, including our global CEO, our board of directors, the owners, the executives, and myself. We鈥檝e been working feverishly, and most people are spending anywhere from 10 percent to 20 percent of their workday right now鈥攄epending on their category鈥攐n B Corp certification. At the same time, we鈥檙e moving forward on our other initiatives, too.

Is there a financial ROI with B Corp certification?

There鈥檚 the business ROI, and then there鈥檚 the human-impact ROI鈥攁nd sometimes those overlap. B Corp certification permeates the whole company. People are safer, they鈥檙e happier, they care more about the way we do business, they stay around longer. It brings more equity and inclusion to business culture, which we know has tangible returns鈥攍ower turnover, higher job satisfaction, and a better-run organization. Then there are the external impacts. We鈥檙e reducing, in a measurable sense, our CO2 footprint. Covering our factories with solar panels, for example, provides a return to the environment and our company financially.

How do you hope consumers will react to this move?

We are not doing these things because we think it鈥檚 a great marketing initiative. It鈥檚 so much bigger than that. But we can鈥檛 overlook the impact on sales and optics in the consumer interface. The general consumer cares about the value of the products they鈥檙e buying. At the first level, they care about performance, fit, comfort鈥攊s it a quality product at a reasonable price? At the next level, they care about how brands make their products, how they treat their people, if they鈥檙e giving back. They want to know if brands are dumping toxic waste in the rivers, if they鈥檙e sustainable, what their supply chains look like. And they want to know that brands aren鈥檛 BS-ing them. That鈥檚 where the B Corp certification comes in. When an independent organization is assessing a brand, that resonates with people.

Your certification will almost coincide with the return of in-person industry gatherings. Will there be a celebration to commemorate this achievement?

Absolutely. I鈥檓 looking forward to several celebrations in 2022. The most important is just getting back together again鈥攚e all need that so much. It makes me realize what a great community we have and how important those times are. Attaining B Corp certification will be a global celebration for us鈥攁 celebration of a great achievement and a team effort. It should be a celebration for our community, too. We鈥檙e also going to have a North American gig, a huge throwdown that says, 鈥淭his wasn鈥檛 easy to do, but it was worth it, and you should consider it.鈥

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The Shady World of Pro Deals /business-journal/issues/the-shady-world-of-pro-deals/ Sat, 08 Aug 2020 02:11:50 +0000 /?p=2569271 The Shady World of Pro Deals

Are pro programs a legitimate perk for industry professionals or a discount sales channel run amok? Some insiders are calling the whole scene a complete farce. Here's why.

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The Shady World of Pro Deals

This story originally ran in the Summer 2020 issue of The Voice.

Who, exactly, should qualify for a pro deal in the outdoor industry?聽A ski patroller? Full-time mountain guide? Retail employee? Most everyone can agree that these professions get a green light. But how about a seasonal whitewater guide getting a deal on skis or a yoga instructor getting a discount on a tent鈥攇reenish yellow? How about someone who takes an avalanche safety course or an amateur photographer with a nature blog鈥攔ed?

What about average enthusiasts who just claim they do one of the above?

Figuring out who deserves a steep gear discount is crucial to running a successful brand pro program. Connect with the right pros, the theory goes, and a manufacturer helps these influencers do their jobs, while also familiarizing them with the gear and driving full-price sales to local retailers for a win-win. But if standards loosen so much that practically anybody can stock up on gear for 40 percent off or more, then pro deals become something else entirely.

鈥淧ro programs are a complete farce,鈥 said Wes Allen, owner of Sunlight Sports in Cody, Wyoming. 鈥淭he idea of a program where you discount to shop employees and people who work in the industry is a solid one. But anybody who鈥檚 being honest about it knows that the programs are completely out of control. It鈥檚 a way for brands to sell direct-to-consumer at a discount without violating their MAP [minimum advertised price] policy. And let鈥檚 be real, there are brands out there encouraging this behavior because they see it as an easy, high-margin sale.鈥

Without any industry-wide standards or watchdogs for pro programs, it鈥檚 tough to judge how well the system is really working. So we went digging for evidence.

The Broadening Definition of 鈥淧ro鈥

Employees at The Trail Head, an independent outdoor retailer in Missoula, Montana, run into shoppers with pro deals 鈥渆very single day,鈥 said owner Todd Frank. Sometimes they鈥檙e just showrooming鈥攖rying on boots and apparel in the store before heading off to order their gear directly from brands or on third-party pro platforms. Sometimes they鈥檙e attempting to use a prAna influencer card (good for direct purchases from prAna only) for a discount in the store, not understanding how the program works. Sometimes they鈥檙e getting their new pro-deal skis mounted.

鈥淥ver the last bunch of years, the number of skis we sell has dropped 15 to 30 percent a year, but the number we鈥檙e mounting has gone up,鈥 noted Frank. 鈥淧eople are very open about [getting a pro deal]. It鈥檚 a badge of honor in a community like Missoula. It makes you a legit outdoor guy.鈥

鈥淟egit鈥 is exactly the point of contention. Who鈥檚 legit? Brands and retailers alike agree that true industry professionals deserve a gear hookup, noting that gigs like ski patrolling, guiding, and wildland firefighting often pay so poorly that these pros would struggle to buy needed equipment. Without pro deals, 鈥渢here鈥檚 no way you could afford this stuff,鈥 said Steve Kunnen, an avalanche forecaster, educator, and guide for Washington鈥檚 Mission Ridge Ski & Board Resort, the Northwest Mountain School, and the Northwest Avalanche Center. He considers his pro deals an essential part of his job: This past winter season alone he bought two pairs of Atomic skis and goggles, a Patagonia ski pack, and Arc鈥檛eryx shell pants, all at 40 percent off or more. 鈥淧eople don鈥檛 realize you hammer your gear鈥 with daily, hard use, Kunnen said. 鈥淭here鈥檇 be a lot more patches and duct tape without pro deals.鈥

And in the right hands, pros do serve as valuable influencers. 鈥淚f a retail consumer sees a pro using a product, that鈥檚 a pretty big stamp of approval,鈥 noted Derek Young, who manages the pro program for Sawyer Paddles and Oars.

Getting gear into the hands of specialty retailer employees can also pay off for outdoor stores: Not only is it a valuable perk for recruiting workers, but an enthusiastic recommendation from a shop clerk can drive sales. 鈥淎ll you have to do is walk into [a store] and meet an employee who鈥檚 like, 鈥業 was using this last weekend鈥欌攖hat鈥檚 hugely positive,鈥 noted Gabe Maier, vice president of Grassroots Outdoor Alliance.

What some retailers do object to, however, is the extension of pro deals to the far margins of the outdoors, such part-time yoga teachers, students enrolled in AIARE avalanche courses, or 鈥渓iterally people who work in the parks department鈥攏ot Yellowstone park, but tennis courts,鈥 said Sunlight Sports鈥檚 Allen. Another gripe: Often, pro members are eligible for discounts well beyond their job categories, as in a backpacking guide also qualifying for ski boots. And some report concerns about straight-up fraud, with faux pros falsely claiming they deserve a deal. Young of Sawyer Paddles and Oars says applicants have sent him snapshots of themselves in a whitewater raft as proof that they鈥檙e professional guides.

Nobody in the industry tracks overall pro purchases, says Grassroots Public Relations and Policy Advisor Drew Simmons, but the organization has heard plenty of anecdotes from its member shops. 鈥淚t鈥檚 an income stream [for brands] that鈥檚 based on promotional, off-price behavior,鈥 Simmons said. 鈥淚t seems to be broadening and growing at a significant pace.鈥 (Several retailers say pro programs really started going off the rails about ten years ago.) Simmons added, 鈥淩etailers are understandably concerned that it has become such a significant part of many brands鈥 businesses that they will have a really hard time reining it in.鈥

And stores argue there鈥檚 much at stake when pro programs get bloated well beyond their original intention. 鈥淓verybody and their dog 85 has a pro form in a mountain town like ours, when they absolutely should not,鈥 said Brendan Madigan, owner of Tahoe City, California鈥檚 Alpenglow Sports. 鈥淵ou鈥檙e effectively retraining the public to shop online always and first, and to look for discounts online, which makes them think brick-and-mortar stores are always more expensive. Brands are effectively undercutting retailers.鈥

鈥淚f a product that we sell is readily available from the vendor for 40 to 50 percent less, it makes us look really bad,鈥 added The Trail Head鈥檚 Frank. 鈥淎nd it harms the vendors just as much, because they鈥檙e going to end up with nothing but a discounted sales channel.鈥

The Middlemen

You can鈥檛 talk pro deals鈥攁nd their potential for abuse鈥攚ithout taking a hard look at third-party pro platforms like ExpertVoice, Outdoorly, Liberty Mountain, and Outdoor Prolink. These businesses partner with brands to manage their pro programs, in many cases vetting applicants, facilitating orders, and providing other services in exchange for a fee and/or a cut of each sale. (Another site, IPA Collective, approves applicants and then connects them directly to brand pro programs.)

Such programs maintain that they help vendors find and vet influencers, and also instruct their pros to send anyone who admires their gear to buy it at a local retailer. 鈥淭he clear reason to have a pro program is to drive more full-price consumer sales,鈥 said ExpertVoice CEO Tom Stockham. 鈥淚t鈥檚 [about] finding the people who have the most credible influence with consumers, and making them better ambassadors for your brand.鈥

Reps for all platforms we questioned for this article (ExpertVoice, IPA Collective, and Outdoor Prolink) stressed they use strict protocols to evaluate applicants. 鈥淚f you鈥檙e not careful with your pro program, you start to undermine your price point and extend discounts too broadly,鈥 said Stockham, who adds that ExpertVoice uses anti-fraud software and cross checks with professional organizations鈥 databases to limit its members to true pros. A spokesperson for Outdoor Prolink noted that the company has five staffers who review the thousand-plus applications it receives weekly (90 percent are accepted, which the company chalks up to clear criteria on its website that weed out unqualified would-be applicants) and requires members to re-certify annually: 鈥淭his ensures that 100 percent of our base [is made up of] vetted professionals.鈥

Retailers aren鈥檛 buying it. 鈥淭he third-party sites are like drug dealers,鈥 said Allen of Sunlight Sports. 鈥淭hey鈥檙e coming in with this story about how 鈥榳e鈥檙e going to get influencers to push people to your retailers.鈥 That鈥檚 such a bunch of crap.鈥 He argues that third-party shoppers don鈥檛 have any real connection to their local outdoor stores.

Frank adds that the sites鈥 business model encourages them to view applicants with a generous eye. 鈥淸Third-party sites] are making commission sales,鈥 he said. 鈥淪o they鈥檙e going to drive as much volume as possible, because that鈥檚 the only way it works.鈥

What鈥檚 more, some retailers say their vendors are on board with such everybody-in policies. According to a member of the sales team who worked closely with Black Diamond鈥檚 pro program, left the company within the past year, and asked to remain anonymous, 鈥淯sing ExpertVoice captures a broader audience and requires less in-house maintenance. Yes, ExpertVoice is too lax with who they approve for pro deals, which Black Diamond is acutely aware of. However, it is also a huge revenue driver for the brand.鈥

In response, the brand shared a statement acknowledging that the pro program isn鈥檛 perfect, but Black Diamond continues to improve its system. It also notes that the brand is a key player in an industry working group on pro sales, which meets to share notes on best practices, including dealing with abuses.

So what鈥檚 the truth behind becoming a pro? We went undercover to find out. In our investigation (see p. 87), the third-party platforms we applied to accepted our fake profiles more often than not. 鈥淚f you鈥檙e willing to lie about who you are, it can be hard to catch someone like that,鈥 noted ExpertVoice鈥檚 Stockham. 鈥淏ut it will happen, and you鈥檒l be kicked off the platform forever. We will always want to work with retailers and others to figure out how to make the system work better.鈥

Some brands say they recognize the loopholes as well. 鈥淲e are aware of some issues regarding pro/industry purchase sign-up validation and are taking aggressive steps to correct any problems around our internal approval process as well as those of our chosen partners to 鈥 tighten controls in a way that ensures a healthy program,鈥 said Andy Burke, head of commercial sales at Outdoor Research.

Bro Deals鈥攁nd Consequences

In some pro programs, membership comes with an extra perk: periodic discount codes meant to be shared with friends and family, aka the 鈥渂ro deal.鈥 Recent promotions from Patagonia and prAna have offered each of their pros three codes at 40 percent off to share鈥攎uch to the chagrin of the retailer community (Patagonia鈥檚 codes were each good for up to $2,500 worth of gear).

鈥淭he question is, is a friends-and-family program really an extension of the pro purchase influencer program?鈥 asked Grassroots鈥檚 Simmons. 鈥淓xpanding accessibility to everyone you know鈥攊s that supporting the original idea [of a pro program], or is it a whole different area of revenue generation? Friends-and-family promotions seem like the number-one thing to train people to [wait for] a good deal every year.鈥

Besides, members of a pro鈥檚 social circle could otherwise be full-price customers鈥攕o why offer them deep discounts? According to prAna鈥檚 vice president of marketing, Jeff Haack, 鈥淲e want to give [our influencers] an opportunity to share their love of the brand and products.鈥 (No other brands we approached agreed to comment.)

But retailers suspect otherwise. Allen guesses these promos are a way to unload excess inventory, and Frank said, 鈥淔riends-and-family discounts are prolific because most of the companies are just using them to drive volume. We have a lot of publicly traded companies in the outdoor industry now, and they鈥檙e beholden to the board and the shareholders鈥濃攚hich means they鈥檙e under pressure to maximize profits every quarter by whatever means necessary.

Ultimately, such complaints about excessive pro deal activity can translate to concrete consequences for brands. Frank dropped Scarpa from The Trail Head last winter: 鈥淭here are people who should not be getting deals from Scarpa who are getting deals every day. Consequently, I just can鈥檛 sell it.鈥 (Scarpa did not reply to our requests for comment.) Allen has similarly scaled back business from several brands so far, and is 鈥渉aving super-hard conversations with鈥 a few others (he declined to name which ones).

And Maier of Grassroots predicts that overly generous pro programs will backfire industrywide. 鈥淚t seems like the programs were created to enhance brand loyalty,鈥 he said. 鈥淏ut where the programs are now, all the anecdotal information points to creating price loyalty. Instead of building up brand equity, it鈥檚 having the opposite effect.鈥

Reining It In

Nobody tracks the precise number of pro program members across the industry鈥 or what percent of total purchases they account for鈥攂ut our investigation shows how easy it is for someone without real credentials to get access to a killer deal. So how can the industry dial back the free-for-all and restore pro programs to their original purpose?

The first, and likely most effective, step: tightening up the vetting process. 鈥淚t would be a huge positive step to get some validation at all levels,鈥 said Maier. 鈥淚f these programs are truly intended to be there for influencers or people who are connected at retail, then what鈥檚 the harm in doing a little more work in verifying who鈥檚 accepted?鈥 Despite assurances from program managers that all applicants must pass strict scrutiny, our undercover investigation proves otherwise: In some cases, fake pros were granted almost instant access using fake credentials.

Instead, managers could require additional documentation if something in an application looks fishy鈥攕uch as professional certifications or, for retail employees, the store鈥檚 invoice number鈥攐r even call someone鈥檚 claimed employer to double-check. Another safeguard for retail employees: Mandate that all purchases be shipped to the store, as Patagonia does. The best-run pro programs also require members to recertify every year, Maier says, so former pros can鈥檛 hang on to their discounts.

And, 鈥渋f there鈥檚 not a direct connection to the local retailer, it doesn鈥檛 work,鈥 said Frank. Many programs do include a note in their acceptance email about sending anyone who admires the gear to their local outdoor shop to make purchases, but there鈥檚 currently no guarantee that members even know which shops carry the products. Young of Sawyer Paddles and Oars says he asks his qualifying pros to send curious clients to specific local shops: 鈥淚鈥檓 trying to build that bridge between the pros and the retailers. Retailers have to trust that manufacturers aren鈥檛 abusing that discounted sales channel.鈥 He even suggests taking the connection a step further: 鈥淢aybe it鈥檚 time for retailers to vet who鈥檚 qualified for programs.鈥

Wrestling these pro programs back down to size, of course, depends on vendors and third parties actually wanting to limit pro deal purchases鈥攏ot intentionally treating them as a lucrative discount DTC channel, as some retailers contend they do. The current state of pro programs 鈥渋sn鈥檛 a misunderstanding,鈥 said Allen. 鈥淚t鈥檚 not people making a mistake in executing pro deal programs. This is a calculated business practice that people are being dishonest about.鈥

Patagonia is one brand heeding its dealers鈥 calls for overall reform by embarking on a revamp of its own program. Among other steps, the company is reviewing pro categories and individual members and scrubbing those not deemed to match a stricter set of criteria, plus ending its twice-yearly friends-and-family promotions.

鈥淲e know we can have a deeper connection with fewer pros 鈥 that supports our business in a better way,鈥 noted Patagonia鈥檚 Bruce Old, VP of global business, and John Collins, leader of global sales teams, in a statement to The Voice. 鈥淲e also realize there are too many access points for discounted products in the market.鈥 The fact that the brand is investing in more environmentally and socially responsible鈥攁nd expensive鈥攑roduction practices, they add, helps make its full-price business even more important.

These kinds of brand-led reforms鈥攅ssentially, hiring tougher bouncers for the pro deal club鈥攁re likely key to reducing abuses and maintaining a more exclusive definition of 鈥減ro.鈥 After all, when everybody鈥檚 a pro, then really, nobody is. And that renders a pro program essentially meaningless.

Getting In: An Undercover Investigation

Just how tough鈥攐r easy鈥攊s it to get into a pro program? We went undercover to find out.

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The Voice launched an undercover investigation into 11 pro programs using three fake personas: a retail employee, a yoga instructor, and Minnie Mouse. (Photo: Courtesy)

Most brands and third-party platforms say their pro programs are for true outdoor industry professionals only, and that applicants are carefully vetted to ensure only the deserving get in. Not everyone believes it.

Industry insiders report concerns about several types of objectionable 鈥減ros.鈥 There are the applicants with questionable outdoor credentials鈥 part-time guides, one-time NOLS students, etc. There are straight-up liars posing as legit pros. And some retailers even charge that platforms will accept absurd applications that are obviously frauds (The Trail Head鈥檚 Todd Frank successfully applied to ExpertVoice as President James Madison).

We tested the system ourselves with three fake personas, complete with bogus credentials, designed to probe brands鈥 defenses against those concerns. 鈥淎pril O鈥橦ara鈥 posed as a retail employee using a free, fake pay stub created online. Yoga instructor 鈥淩ashida Samat鈥 submitted a screen shot of a real teacher鈥檚 online profile that didn鈥檛 include a name. And for our most ridiculous attempt, 鈥淢innie Mouse鈥 applied with a photo of a coffee shop punch card. We tried 11 pro programs (five third-party pro platforms and six brands directly). When admitted, we placed an order and, in all cases, received the gear (items will be donated).

In some cases, our applicants received a green light within a few minutes, suggesting no vetting process or a very limited automated one. In others, someone reviewed the application, but didn鈥檛 probe deeply into our supporting documents. Andy Marker, founder and principal of IPA Collective, who approved our application for 鈥淩ashida Samat,鈥 noted, 鈥淚 saw the [online studio] profile, and on that day, it was good enough for me.鈥

Ten of the 11 targets rejected Minnie Mouse (Liberty Mountain accepted her without question). But the results were mixed for April and Rashida.

 

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Camber CEO Outdoor Equity Pledge Sparks Major Backlash /business-journal/issues/camber-ceo-outdoor-equity-pledge-gets-major-backlash/ Tue, 05 Feb 2019 10:01:54 +0000 /?p=2570988 Camber CEO Outdoor Equity Pledge Sparks Major Backlash

The Pledge, announced to a packed house at Outdoor Retailer Snow Show, was intended to bring the industry together, but ignited a wave of skepticism and criticism instead

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Camber CEO Outdoor Equity Pledge Sparks Major Backlash

On the final day of the 2019 Outdoor Retailer Snow Show last week Camber Outdoors announced its CEO Outdoor Equity Pledge. Following a panel discussion moderated by Harvey Floyd II that included Amy Roberts of Outdoor Industry Association, Kim Miller of Scarpa, Jim Weber of Brooks Running, and Wendy Yang of Hoka, Teva and Sanuk, Camber executive director Deanne Buck invited more than 60 CEOs of brands and nonprofit institutions to the stage to sign a document declaring their intention improve DEI (Diversity, Equity, Inclusion) efforts within their companies and to more directly engage under-represented sectors of the U.S. population, specifically people of color (POC).

But within minutes of the announcement social media began lighting up as people in the outdoor community expressed outrage over two glaring issues: 1) the description of this initiative as the 鈥渇irst-of-its-kind鈥 and 2) the apparent absence of a critical constituency in its planning, namely people of color.

The Co-opting Controversy

As of 1 P.M. today, February 4, Camber鈥檚 website claims that its CEO Outdoor Equity Pledge is the 鈥渇irst-of-its-kind.鈥 That assertion was echoed by executive director Deanne Buck on stage in her opening remarks last week.

Camber website screenshot
The “first-of-its kind” language on Camber’s website is at the heart of the debate. (Photo: Screenshot)

The problem is, the CEO Outdoor Equity Pledge is not the first of its kind. Understanding the timeline is important here.

Though the original CEO Pledge, first introduced by the Outdoor Industry Women鈥檚 Coalition (OIWC) in 2015, set the intentions of business leaders to promote the interests of women, that document made no reference to racial or ethnic diversity.

When OIWC was rebranded as Camber Outdoors in 2016, its mission parameters did indeed include people of color. Clearly, the organization began working more specifically on DEI issues at that point, but that language wasn鈥檛 officially codified into the CEO Outdoor Equity Pledge until Friday of last week.

In the meantime, last summer, DEI activist Teresa Baker circulated a document called the Diversity Pledge at the Outdoor Retailer Summer Market. Distributed on the website diversifyoutdoors.com since July of last year, Baker鈥檚 pledge, which currently has 23 signatories, invites CEOs to be more equitable and inclusive in their practices of recruitment, hiring, mentoring, marketing, and community engagement.

Indeed, the two pledges are very similar, at least in their intent, and this is at the crux of the heated debate. DEI had certainly been a priority for Camber since it rebranded in 2016, but Baker was definitively the first to launch a pledge aimed at diversity. By using language like 鈥渇irst-ever,鈥 Buck unleashed a firestorm.

鈥淚t鈥檚 clear to me that more than 50 mostly white-led outdoor brands just publicly declared that they either preferred or were more comfortable working with a white-led organization on flipping diversity, equity and inclusion than one pre-existing one led by a black woman and supported and facilitated by other people of color,鈥 said journalist Glenn Nelson.

鈥淚 was really frustrated because it was like once again a white organization claiming dominance upon something that鈥檚 clearly not theirs and indicating that they鈥檙e the first ones when Teresa Baker is working her ass off doing this,鈥 said Jaylyn Gough, founder of the indigenous people鈥檚 advocacy group Native Women鈥檚 Wilderness. 鈥淵ou have all these groups like Brown Girls Climb and Queer Nature and Native Women鈥檚 Wellness and all of these grassroots organizations that are really working on changing the outdoor industry and what it looks like. This is nothing new.鈥

People of color at Outdoor Retailer
People of Color at Outdoor Retailer leading grassroots efforts toward DEI in the outdoor industry. (Photo: James Edward Mills)

When it transitioned from OIWC to Camber Outdoors in 2016 the organization shifted its focus to include people of color. And to date Camber鈥檚 board of directors, staff, and some of its members have begun to reflect the DEI principles they aim to promote.

Shanti Sosienski Hodges is the founder of Hike it Baby, a nonprofit dedicated to getting families with infants and toddlers on the trail. Her organization has been actively working to address the interests of people of color in her community and recognizes the constant struggle to get it right. 鈥淭o take on diversity, equity and inclusion and not first have it your ranks is never going to work out in your favor,鈥 she said. 鈥淚 know from experience at Hike it Baby that every time we try something in DEI without talking to people of color around us first, it ends badly and feelings are hurt.鈥

Hodges said had Buck and Camber not used the 鈥渇irst-of-its-kind” language and acknowledged the efforts of Teresa Baker and others, 鈥淲e wouldn鈥檛 be having this conversation.鈥

Executives line up to sign Camber's CEO Outdoor Equity Pledge
CEOs of outdoor industry companies sign up to pledge their support of efforts to promote DEI. (Photo: James Edward Mills)

Camber Apologizes for Co-opting Language

In response to several posts on social media, Camber Outdoors has apologized.

鈥淯pon reflection I can see how people would question ‘the first-of-its-kind.’ There are a lot of amazing efforts out there, a lot, and all of those efforts are pointing toward the same vision and the same end goal,鈥 Buck said in a phone interview. 鈥淐ollectively, it鈥檚 important that we support each other even though we might have completely different approaches. We definitely want to acknowledge the work that Teresa Baker and Diversify Outdoors have brought to the industry. It鈥檚 important. It鈥檚 valuable. It鈥檚 critical. And we apologize for anything that might have felt like we were discounting that by saying 鈥榝irst-of-its-kind鈥. I will be revisiting that, and in the future make sure that the tent is big.鈥

As we go to press, Camber has issued a public apology. 鈥淲e now understand and fully regret that the language we used failed to respect and acknowledge the myriad ground-breaking efforts in the outdoor industry, especially Teresa Baker鈥檚 CEO Diversity Pledge, which launched in July 2018,鈥 read the post on Camber鈥檚 website and Instagram account. 鈥淲e were wrong in the use of the words ‘first of its kind’ and in how we positioned the initiative. We see how deeply it has impacted many people, including Teresa, and how hurtful our words were. That was not our intent. The announcement has been corrected. I have reached out to Teresa to personally extend my apology.鈥

Despite the apology, some members of the POC community have immediately demand that Buck step down as ED of Camber.

Were POC Involved in the Crafting of Camber鈥檚 CEO Outdoor Equity Pledge?

On the evening before the February 1 Camber event, Marinel de Jesus, a Washington D.C. based attorney and founder of Brown Gal Trekker, took to Facebook to express her disappointment in the fact that people of color were not widely involved in the creation of Camber鈥檚 pledge. 鈥溾ou have not once expressed any intention to partner or work as an ally of the communities that you purportedly wish to target with your DEI efforts,鈥 de Jesus posted in the Basecamp Facebook group and on her website. 鈥淚n fact, it appears you have disregarded such voices completely without apologies. Your work groups are filled with white-led DEI propaganda with just three of us POCs as your form of tokenism present and yet our knowledge and experience on the subject matter were underutilized, but more often dismissed.鈥

In response to the allegations that no POC were consulted in the creation of Camber鈥檚 CEO Outdoor Equity Pledge, Buck has said that is simply not true.

One such POC is Reggie Miller, senior director, inclusion and diversity at VF Corporation and a Camber board member. 鈥淐amber Outdoors has taken great care to establish an open and active Workplace Equity Working Group and gather a broad range of stakeholders in developing the pledge, which was key to its success and has us enthusiastic about its potential,鈥 said Miller. 鈥淲e are always open to engaging with additional organizations that share our focus on making our company and industry more inclusive and welcoming to all.鈥

There were indeed at least two African American men (including Miller) and a woman of Asian descent on the advisory council. But many believe that more POC who have worked within the industry should have been more directly engaged in the process.

When reached for comment, Teresa Baker said all that matters to her is the outdoor industry鈥檚 commitment to DEI. Though she understands that not all businesses will adopt the principles of her Diversity Pledge she is prepared to offer guidance wherever she can.

鈥淚 am grateful for those who choose to work with me in action and not just in symbolic gestures,鈥 Baker said. 鈥淚 will not go back and forth on which course is best. I will continue to do the work and extend myself to those who wish to do the same.鈥

Deanne Buck of Camber Outdoors announces the CEO Outdoor Equity Pledge
Executive director of Camber Outdoors, Deanne Buck, announced the CEO Outdoor Equity Pledge at the Thought Leaders Keynote event last week at Outdoor Retailer. (Photo: James Edward Mills)

Support for Camber鈥檚 Intent

It鈥檚 important to remember that Camber Outdoors is a professional organization. Its motivations and priorities are not the same as those of activist groups dedicated to social or environmental justice. Even though the Camber CEO Outdoor Equity Pledge aims to make a business case for the value of DEI in the outdoor industry, its methods of engagement with the general public will likely differ from those of grassroots nonprofit initiatives. With a board of directors to whom she must answer, Camber executive director Deanne Buck said her organization is forging its own path to achieve many of the same objectives.

Most agree that Camber鈥檚 CEO Outdoor Equity Pledge has honorable intentions based on an overall desire to see more diversity initiatives across the outdoor industry. Those we spoke to suggest that Friday鈥檚 announcement is a positive step in the right direction.

Yero Winborne is the social media coordinator for the Greening Youth Foundation, a nonprofit that specializes in placing young people of color as interns and entry level employees at agencies of the federal government, environmental nonprofits and private businesses. 鈥淭he CEO Equity Pledge has a lot of good names and faces in it,鈥 he said, immediately following the Camber event, which he attended. 鈥淚鈥檓 not sure what policy changes we鈥檒l see, but I鈥檓 excited that there鈥檚 something going on.鈥

Phil Powers, CEO of The American Alpine Club, signed the CEO Outdoor Equity Pledge because he wants to do better. 鈥淚 can鈥檛 really express that I have taken on the leadership that many have in this industry,鈥 Powers said. 鈥淏ut my staff has made it really clear that this is important, not just for them, but for our growth as an organization and our ability to make climbing a sport where everyone can belong. This pledge is yet another tool that cements and supports that.鈥

Is There a Path Forward for Cooperation?

Now that Camber has publicly apologized, Baker said she hopes the group will demonstrate their sincerity by taking direct action to achieve substantive change.

And now that both sides of this controversy have a better understanding of how each other feels, perhaps there is room for compromise. Kim Miller, CEO of Scarpa NA, said this moment is the best opportunity we have to come together and realize what matters most when it comes to DEI.

鈥淭his is the right thing to do and we have to start somewhere. It鈥檚 not going to be easy. We鈥檙e going to make mistakes. But we have to think about the big picture and the highest-level goals,鈥 Miller said. 鈥淭his is not about any one individual. We have to understand that we鈥檙e going to make mistakes and we鈥檙e going to have hurt feelings.鈥

As a mixed-race man at the head of an outdoor industry company Miller understands firsthand the challenges we face moving forward. This is the next step in an ongoing struggle to achieve the common goal of equitable access to both the natural world and the business of outdoor recreation. Somewhere between the pragmatic interests of corporate gains and the necessity of change makers to achieve equitable access to power, perhaps we can share in the effort.

鈥淚f we think we鈥檙e leading the charge on equity and ethnicity we need to think again. Our parents started that charge,鈥 Miller said. 鈥淲e鈥檙e not starting anything. We鈥檙e just trying to push that boulder up the hill a little farther and we have to do it together.鈥

In the interest of full disclosure the author of this story serves on the steering committee of the Diversity Pledge lead by Teresa Baker. He has provided guidance in establishing relationships with companies and institutions in the outdoor industry.

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Opinion: Why Direct-To-Consumer Sales Are Killing Specialty Retail /business-journal/opinion-business-journal/im-fired-up-why-direct-to-consumer-sales-are-killing-specialty-retail/ Sat, 23 Jan 2016 06:55:43 +0000 /?p=2572521 Opinion: Why Direct-To-Consumer Sales Are Killing Specialty Retail

As gear companies increase their direct-to-consumer sales, 鈥減ro deals鈥 and 鈥渇riends and family" promotions, retailers protest that they can鈥檛 compete. They鈥檙e being undercut and left holding the bag on inventory they can鈥檛 possibly sell at the same discounts. Todd Frank, owner of The Trail Head, an independent Missoula, Montana-based specialty outdoor retailer, says enough is enough. If vendors continue to offer these discounts and lure his customers away, he鈥檒l stop doing business with them鈥攁nd he calls on other retailers to join him

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Opinion: Why Direct-To-Consumer Sales Are Killing Specialty Retail

We, the independent specialty retail shops, did all the legwork to create these customers. Without us, these companies wouldn’t be here. I鈥檓 not sure there are many vendors that could survive without us, so I鈥檓 trying to help vendors balance capitalizing on the opportunities that direct-to-consumer sales have without undermining our ability to build that relationship with the consumer and profit on our inventory.

What outdoor specialty does the best is introduce people to products. You have consumers who don鈥檛 know anything about a new category, if they鈥檝e invented a new kind of shoe or a new old fabric in the case of wool from Icebreaker. It took a tremendous amount of work on the part of a big retail network in America to put Icebreaker products into people鈥檚 hands and help people see the value in it. Growing a brand from its infancy to the point where it has relatively broad market awareness is something that retail stores are still going to do better than selling direct to consumers online.

We sell consumers on the brand, but we have a very limited assortment of it because it鈥檚 hard for small retailers to pioneer a brand and you can鈥檛 buy all of the available products and colors. So you introduce people to this new brand and eventually they go, 鈥淚 wonder what else there is?鈥 And that consumer ends up going to their website to look at the product breadth that we don鈥檛 have.

Immediately after consumers engage with their website, vendors hammer that consumer with email blasts and specials like free shipping and throwing in a pair of gloves or a free hat. They really work to steal that customer away from us.

Ibex is another serious offender. We essentially create the brand disciple and they steal them. I don鈥檛 think a company like Ibex could survive without direct-to-consumer business, but I also don鈥檛 think they ever would have been able to get off the ground by only doing direct-to-consumer business. We鈥檙e not going to win every battle, but if Ibex continues to do business that way, it鈥檚 going to be harder and harder for retailers to support them.

I recently threatened to drop Scarpa, one of the most important brands in backcountry skiing. By far, Scarpa has been the best telemark and alpine touring boot manufacturer to work with in my career, so why would I sever the relationship? Vendor partners are now our fiercest competitors. This year, it started with a free hoody if you bought boots from them, some free freight promos and then the now-common 鈥渇riends and family pro sale.鈥 In the days leading to Christmas, a group of vendors opened up the pro sales departments and wholesale pricing to all friends and family of legit pros. Scarpa, along with 33 other vendors, including Osprey, Cascade Designs, Rab, La Sportiva, Petzl, MSR, BCA, Mountain Hardwear, and Sierra Designs participated in this sales extravaganza run by Outdoor Prolink.

Outdoor Prolink's homepage. Screenshot taken Jan. 21, 2016.Outdoor Prolink’s homepage. (Screenshot: Todd Frank)

When I asked Scarpa to give me a reason why they did it, the simple answer was 鈥渕oney.鈥
They primarily sell a product that needs to be custom fit by a professional with the tools to do it. We have done thousands of boot fittings here over the last 18 years, and we are pretty good at it. Why would I want to do business with a brand that actively sells a product that needs my expertise to fit properly when that business aggressively under cuts what I can sell it for? Five years ago, I would have howled and said because they have the best boots. Now, there are seven or eight other vendors that have absolutely amazing product, too. (Editor鈥檚 note: To Scarpa’s credit, since receiving similar feedback from several retailers they have committed to no longer doing friends and family promotions.)

If we all have to pay the price of a problem equally, it will stop vendors from pushing direct-to-consumer sales and taking business away from us. They鈥檙e always going to have a better assortment than we do, and they can鈥檛 really fix that piece of it. But what they can do is work with us to make sure we can sell the product we stock profitably throughout the whole season. So I鈥檓 asking the vendors to come to us with creative ideas.

I just had an experience with a major vendor in the apparel industry who went off price on their web direct-to-consumer business in clear violation of their own policy that said 鈥淲e鈥檒l hold price until this point in time.鈥 For reasons that are all legitimate, they couldn鈥檛 wait. I went to the vendor and I said, 鈥淚 think you owe me some markdown credits. You didn鈥檛 go by the policy you鈥檙e asking me to go by.鈥 They were pretty happy to do it. That needs to happen on more levels.

Until a vendor is affected by the final transaction with the end consumer buying their product, they鈥檙e not going to change the way they do it. So I鈥檓 looking for more partnerships with vendors who are willing to do things like manage excess inventory, share costs, take product back, trade product out, use markdown credits, or simply guarantee a sustained margin. The only way we鈥檙e going to change vendors鈥 behavior is with our checkbooks, so I can鈥檛 keep saying to people, 鈥淵ou have to change the way you鈥檙e doing business,鈥 and continue to buy 10 percent more than I did last year. At some point I just have to get up from the table and say, 鈥淲e鈥檙e done.鈥 They鈥檝e got to feel the pain a little bit, and until they feel the pain, there鈥檚 no motivation for any change in behavior.

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