July 2, 2007 – Scott alters some of its distribution

This spring, Idaho-based Scott USA Product Manager Dyke Morris added some new responsibilities to his job: sales rep.
Morris is one of three Scott USA employees with an expanded role as the company dropped its snowmobile clothing distributors in favor of a dealer-direct approach.
“With how the winter’s been going and with so many players, the pie is just so big. And there are more people coming into the game,” Morris said. “We have to adapt.”
This sales approach only affects snowmobile clothing. Goggles and other winter sports lines will still be handled though distributors, he said.
“We just thought it was the best step for us,” Morris said. “That way, we can make the products more attractive in price and also sell consumer-direct through the Internet.”
Morris’ sales region is the Rocky Mountain states. Craig Johnson, a Minnesota-based sales rep, will handle the Midwest. Scott USA’s national sales manager Primo Marotto, based in New York, will do the Eastern sales.
“We were all with the company already,” Morris said. “But now we’re knocking on some doors ourselves.”
So far, this move is primarily for U.S. dealers, though Morris said something similar might happen in Canada.
Distribution will be handled by current Scott USA employees; there are no plans to expand any departments to accommodate the new direction.
The Bottom Line
The decision to go dealer-direct came down to one main reason: increasing sales. Morris said this change should boost the products’ bottom line.
“There were too many hands in the pot,” he said. “Now it’s just us to the dealer, which brings the consumer a better price.”
Retail prices of the clothing are down an average of 20-30 percent. Dealer cost is down a comparable amount. Dealers will now deal directly with Scott USA for warranty and sales, which Morris said will be easier for dealers.
“Dealers are still getting their regular margins, so that pretty much makes them happy,” he said.
Morris said that an online store will be set up by August so the company can sell consumer-direct. Items will list for retail price.
There won’t be much change in overall marketing strategy, Morris said. The company’s magazine advertising will remain consistent.
Morris said this is not a pilot program nor an indication of the company’s overall sales direction. As of now, it will be limited to snowmobile outerwear sales, with no indication that it will spread company-wide.
The Lineup
For this sales season, 85 percent of the lineup is new, Morris said. Three jackets and two pairs of bibs are carryovers, he said.
Some Scott snowmobile gear has becomecome more in line with what’s in the ski industry, he said, pointing to the soft-shell Axiom jacket with multi-function layers. Scott has a similar jacket in its ski/snowboard line. psb