Archive for June, 2009

Brother, Can You Spare A Dime?

Recently I was in downtown Salt Lake and came across two people begging for money, clothing, anything. This time I looked closely, without the “go find a job” attitude that I normally carry. These were people who were looking for jobs. The signs were heartfelt, and I thought, authentic. I believed they would drop everything and follow me if I offered them a job. 

And then I started thinking about all of the excess inventory that the outdoor recreational industry dumps every year. Jackets, socks, pants, long underwear. Inventory that manufacturers try to hide from retailers by putting the stuff in the backchannels and then the product sells for dirt cheap. Or retailers try to hide excess inventory from the manufacturers by going online under another banner and selling stuff at a steep discount. (More about that in a post coming up.) 

Is there a better way?

I think so. Here’s an idea. 

Instead of dumping inventory into these back channels, take it and offer it to the out-of-work/homeless folks in ten major cities. It comes with a price tag. To receive the clothing package each person-in-need must sign-up for the brand’s environmental or humanitarian cause in that city.

Brand volunteers go out into a city and find the real people who want to work and contribute. These people get assigned to a project and are told where and when to show up. River clean-ups, parks, beach clean-ups…there are a millions projects out there. 

The projects last for a weekend. On Saturday and Sunday…breakfast, lunch, and a dinner will be served to the homeless at the project locations. At the end of that weekend the volunteers get a great clothing package from the outdoor manufacturer. 

Local retailers would volunteer and offer other types of support… and benefit by having their establishments featured in the local press. 

Can you imagine the public relations benefits of such a program? Every local television station would go “live” from a volunteer location. Radio and print would be all over it. And in ten cities. Get your PR folks to talk with the big guns…like The Today Show, GMA, etc. Would this appeal to them? Uhhhh, yea. A manufacturer giving back to ten cities and to the folks who need some help. Headline:  Manufacturer, Homeless, and Local Environmental Groups Combine To Make A Difference. 

And new media would take the story and run with it. Outdoor blogs. Green blogs. Political blogs. Big time. Bloggers would be wondering how else we can employ the unemployed for the benefit of all? Twitter would be on fire with the brand volunteers, press, bloggers, etc.  who witnessed these events. 

So, instead of dumping product, a manufacturer is putting that clothing to good use. And leveraging it by getting more publicity then that manufacturer has gotten in the last three years-combined.

Too expensive? How expensive is it to find a home for all excess inventory that disappears without profit, with no benefit to the company, and all the while contributing to price erosion?

So find a home for that excess inventory in a place of gratitude, work, and good will. Who knows, the company might change lives, and those are follow-up stories worth gold. 

Outdoor recreation has soul. I’ve seen it. Show more, and the benefits to the company will come in all forms.

Homeless person to a brand representative:  ”Thank you for the long underwear. I’d like to help further with the clean-up. Will you be doing this again?”

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

REI iPhone App

Tomorrow is Bike to Work Day so I thought I would write about a new app.

I downloaded the new REI app onto my iPhone a few days ago and took my road bike out for a spin. It’s called Bike Your Drive by REI. The brand is selling this as an app that will record your miles, the carbon you save, calories burned and some other stuff. It encourages you to ride your bike to work and then shows you the pay-off.  

Well, for me it worked. Liked it a lot. The UI is pretty simple and easy to use. Here’s what my ride recorded:

 

The GPS picked up my starting point and immediately started recording and tracking my progress as the wheels started to roll.

I saved 7.5 kilograms of carbon on this ride which equates to about 16.5 pounds. Man, that is startling. Now true most people aren’t riding their bike to work and having it take over an hour…on the other hand, imagine riding your bike to work every single day for 5 miles. The carbon-loading would really be diminished. 

I would have also saved about 2 bucks in gas, which also would add up. 

My only complaint about the program is that when you receive a phone call, while riding, it doesn’t automatically default back to the user interface panel after the call is over. You have to retrieve the program again and then hit resume. Now I might have done this part wrong but I don’t think so. 

Another thing, and I’ve written about this before. Why, wouldn’t REI show you the location of the nearest store?  Put a button in there to press and when I want to buy bike parts, clothing, anything..there is the nearest store. 

Thousands of daily bike commuters are in Seattle, Denver, Salt Lake and many other cities.  It would be good to know how close you are to REI while riding to or from work. 

REI, you’ve provided this application for free and its a very good idea. My applause. Now, please tie-this back to selling merchandise. Offer store locations. Encourage these commuters to visit your store. We won’t mind. 

We want you to continue to prosper so you can do more of this.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Dad’s Ceremony

 

The ceremony for Dad was terrific. He would have been pleased. All of his family, friends and business associates were there.  Here are some pictures. My brother Bill gave the speech for our family and did a great job.

Union City Indiana did his family proud.  It’s time to  move on to other topics; however, I thank all of the people who made this event possible, especially Harold Hawley who spearheaded this entire effort. As a family, we will be writing a thank you letter in the Times Gazette. We are eternally grateful.

 

My brother Bill delivering the speech for the family. 

My brother Tom, far left, and I listening to brother Bill. Far right is Master of Ceremonies Jan Passmore. 

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Ode to Dad

 

This weekend the town of Union City, Indiana will honor my Dad for his World War II accomplishments. There will be a celebration in Harter Park where a plaque honoring Dad will be placed. It’s the beginning of a place to honor home town veterans. You can read about how all of this started on this blog, Happy Birthday to a Quiet Man. 

Well, this event has exploded. People in Union City are coming out of the woodwork, talking about their fathers, mothers, sons and daughters who have served our country. It seems all of the World War II veterans were the same…didn’t speak much about it. 

Union City is in the rust-belt. It has suffered due to the continuing struggles of Detroit. It has survived, but many would say that it is a miracle. To me, my hometown is a testiment to the work ethic and general level-headedness of these midwestern folk. “Okay I lost my job. I’ll go do something else.” Healthy dose of being grounded. 

Dad grew up in Union City and fit right into the mold. Quiet. Unassuming. Basketball Player. A real good one. And then he went off to war. 

He wrote to my Grandma that when he took his first flight off the Yorktown in his Gruman Avenger and looked down on the aircraft carrier “it looked like a postage stamp.” He asked himself how could he possibly land this thing on that. Well he did, with the help of tail hooks. 

After one mission where he had been particularly shot up and limped the TBF Avenger home, his radioman/bombardier came up to him as he was inspecting the plane and said, “Lieutenant Kirwin, I’ll fly with you anytime sir.” 

I would have too. He had the quiet assurance that always made you feel it was gonna be okay. 

A happy early Father’s Day to all fathers, but particularly the World War II Vets. They fought and died for their future and ours, and won. And did it with humility.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Outdoor Retailer and the Winds of Change

Recently Outdoor Retailer brought out some cost-cutting measures designed to ease the price pressure for manufacturers and traditional retailers. Attendance at the shows has been dragging. So booth pricing was cut along with some other stuff. It’s a start, but it does not address the challenge.

Here is the challenge.

The distribution system has changed. The minute manufacturers agreed to sell online then consumers became the 800 pound gorilla in the distribution system. They wrote product reviews. They expressed opinions on blogs. And they twittered about their purchases. They now are directly in the loop and they like it.

Traditional retailers are still players in the distribution system, but not the only player. And that is what Outdoor Retailer apparently fails to understand.

Here’s the line-up in the distribution system:

1. Traditional Retailers

2. Online Retailers

3. Small online “sellers” that are in the shadows…selling product that manufacturers may not even know about. (More about that in another blog.)

4. Manufacturers selling goods online.

5. Large Product Review Sites…these invite consumers to review, then publish to the public with relish including online links to retailers offering the product.

6. Platforms that offer a mix of brick and mortar and online.

Five of the six players in the system offer feedback loops for consumers to respond with a product review. Millions are doing so.

84% of consumers list online product reviews as key to their purchasing decision reports SIA. And I have tons of back-up research pointing to about the same thing.

Until OR addresses the consumer by opening up the Show to them for the last day, all other cost-saving measures that they employ is window dressing.

Why? Because OR is about cost-effectively selling and buying product. (We’re all in one place.) It is not about saving money. And more product can be sold and more on-the-sport feedback received when the 800 pound gorilla is in the room.

And if OR doesn’t address the changes in the distribution system, then manufacturers will be forced to.

What does that mean?

Money away from Outdoor Retailer, which will now be known as the “traditional trade show”, and money into an outdoor consumer trade show that will grow so rapidly it will make your head spin.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal