Sophisticated computerized and digitized design has also significantly upgraded many lettering departments, helping take full advantage of latest sublimation techniques. With advanced POS and inventory systems as well as investments by vendors in their own B2B sites, access to information has never been easier, including up-to-the-minute inventory information and pricing. Tech provided by the team buying groups has noticeably sped up invoice payments.
Still, many dealers still don’t have an e-commerce site and social media isn’t a priority for most. Online fit technologies haven’t seen much investment in the space, although Riddell has developed 3D-scanning app technology for customized football helmets and multiple footwear fit technologies are now available.
Generally, team dealers appear comfortable letting the big boys like BSN Sports test and learn with its massive tech investments on the belief the team dealer business remains more analog than digital with customer relations still winning the sale.
Here, seven team dealers discuss their technological transformations.
At Kratz Sporting Goods, based in Clarksville, IN, its online team store has grown to account for about a quarter of the business.
“That’s a huge part of what we do with technology and it absolutely helps cash flow in our business because it’s all paid up front,” says owner Allen Krebs. “It’s a little more work because it’s all individual orders, so we’re having to make adjustments.”
Kratz is in the process of upgrading its POS from a QuickBooks system that has been phased out. Online, Kratz has been investing in some social media and has an e-commerce site with some full-price sales available, although a primary benefit has been to liquidate footwear stock. Krebs says: “We used to sell older styles on Amazon, but they just were taking too big a portion of the profit with their fees.”
Kratz uses some simple analytic tools in forecasting and making buying decisions, evaluating prior-season sales and input from his sales team. Orders, however, are still often taken by pen and paper and then loaded into the POS system. “We’re just not big enough to have scanners out there scanning every tag and so much of what we do doesn’t have tags on it anyway.”
One technology threat he sees is more major brands selling footwear, bats, gloves and other items directly to the end consumer through their DTC (direct-to-consumer) sites.
Krebs’ advice on technology: “Computers are great, but they’re only as smart as the information that you put into them. Also, when you’re buying technology, find something that fits who you are or who you want to be. There can be some very cumbersome technologies out there and some antiquated ones. Do your homework on them.”
National Sports AppareL, based in Orange, CA, lately has seen a big technology benefit from automating communications, particularly linking its decoration department to a growing sales team. Says GM Steve Peterson: “We have a lot more salespeople who are not in our building all the time. They can’t just walk out to the back warehouse and see that their orders are there.”
Gaining visibility into real-time inventories at vendors has also come in handy as suppliers, particularly shoe brands, are working to maintain leaner inventory levels.
Online, team stores have been a breakthrough for National Sports to reach individual customers. “That’s been a massive change to the industry,” says Peterson. “With budgets going away, being able to sell that directly to players has been a big deal.”
However, Peterson believes driving more efficient communications has been technology’s primary benefit. In areas like art and decoration, National Sports has underinvested in tech compared to some national competitors because Peterson believes coaches and administrators “haven’t sort of demanding that stuff.”
Even in communications, he believes the human element takes presence. “We’re so relationship-driven in the team business. There’s only a certain level of technology that works before people go, ’Nah, I want to talk to somebody.’”
Among newer technologies, Peterson sees the potential for artificial intelligence-driven chatbots quickly telling a rep what’s available across colors and size ranges. “So much time on the sales side is devoted to just what’s available,” he says. “It might be a while before it comes down the pike.”
Among risks related to technology, Peterson suscepts some logistics innovation could potentially lead to the “Amazonification” of the team dealer industry, where uniform orders are expected back within one or two days or even hours. He notes that most buyers are still over 40 and “didn’t grow up with cell phone in their pockets,” but some younger ones express surprise at the two-to-three-week turnaround window.
Sandy Heldman, owner at Gee & Bee Sporting Goods, Auburn, ME, has seen a complete overhaul in how uniforms are ordered in his 46 years as a dealer.
“In the old days, you hand wrote the order, sent it in and they’d send back an acknowledgement,” Heldman recalls. “Now, you’re placing everything online. They review it, send you a proof, you approve it, send it to your customers…it really is an easy transition.”
Working with the end user has also significantly changed with sites from Champro and others enabling teams to drive the order.
“The customers are doing all the work,” says Heldman. “They’re designing it, they’re putting in the rosters and sizes, they’re sending it to us. We’re just tweaking it, looking at it, sending it in and ordering it.”
While the online shift has sped up the ordering process in many ways, and it helps in viewing order activity and inventory levels and also likely brings down uniform costs, it has added some challenges.
“Some of the older people in the sporting goods business, me included, really struggle with technology, especially if you don’t do it every day,” he says. “That’s what the manufacturers don’t understand. They say, ‘Our site’s really simple.’ Well, we have to know 30 sites across suppliers and they’re all different. And then even with our own site, if the salesman or whoever doesn’t use a certain feature every day, it can be head scratching.”
Gee & Bee has benefited from online team stores online, but Heldman is uncomfortable seeing the whole process become automated. “They try to make it easier for you. But in my opinion, you still have to have some controls as a dealer.”
Heldman likewise notes that online data is “only as good as the people putting it in and taking it out.” Newer concerns arriving with technological advances include avoiding online scams, but Heldman doesn’t see technology as a major threat to the dealer space.
“Technology can only go so far,” he says. “We’re constantly seeing out-of-state internet-type companies trying to come into our state, using their technologies and spending to get their site to come up first in online searches. But you still need some customer service. You still need customer relations.”
Minden Athletic Supply, Minden LA, has found success opening with online team stores. “I was the number one naysayer back many years ago, but last month, we did more on it than we did here in the store,” says Chris Williams, head manager.
However, Williams says Minden Athletic doesn’t rely heavily on technology overall, not only due to costs, but in many cases due to the value provided. He says: “In the end, somebody has to enter in the data. So, it’s one of those things where I can write it down in a notebook faster than we can make it happen in some kind of program.”
Williams also believes categorizing inventory is an overly complex task within the team space. “For instance, we get T-shirts from several different vendors and that T-shirt might be put on the shelf to sell, decorated with a local school’s logo on it, or decorated with the business down the street’s logo on it,” he explains. “So that’s three different items and that person putting them in the computer has to know where each of those are going. I’m sure there’s all kinds of programs that would eliminate those issues, but it’s high dollar.”
Complications often arrive with technology integrations, he adds. Some “bumps” are currently being experienced as Minden Athletic installs an advanced POS system to support a second store: “Anytime you change the computer systems, it’s a big, big headache.”
Williams adds that while online sites offer more competition for those seeking “something a nickel cheaper,” MSRP policies reduces price competition in certain categories. Strong customer service also helps Minden Athletic compete against online selling, including from vendor DTC sites.
“The big vendors are horrible at customer service,” says Williams. “They’re horrible at it to us and definitely horrible at it to the end user. They’re just not built for that.”
At Glenn’s Sporting Goods, based in Huntington, WV, the sales team utilizes laptops, iPads and mobile phones to gain instant, fingertip access to vendor sales programs, customer orders and quotes, reports Chris McGlone, Glenn’s team sales specialist.
The dealer’s POS system combines Epicor and Microsoft Office with reps particularly relying on Microsoft’s suite. “We have been using Epicor for about 12 years and are very happy with it. It integrates with all three of Glenn’s departments: team sales, retail and government wholesale,” says McGlone.
Beyond online team stores, newer tech investments include some dimensioning and weighing systems to get accurate shipping costs from UPS. “With freight becoming an increasingly large expense, we can reduce any unforeseen expenses with our shipping,” he points out.
He adds that any tech overhaul has to align with the business’ needs and culture. However, with coaches and administrators also looking to tech to streamline the ordering process, McGlone believes dealers have to embrace technology.
“The days of snail mailing a four-part uniform order form to Russell Athletic has been over for some time,” says McGlone. “Our customers want a formal quote with a full color mock-up and specs — and they want it now! If you can’t furnish it, that’s when they’re going to find someone else who can do it even if that competitor is hundreds of miles away.”
That also goes for their vendors. “Our suppliers who maintain and keep current sales programs on the Sports Inc. website are more likely to earn our business. The same goes for online uniform builders. B2B is a must. This is not a 9-to-5 Monday-to-Friday job. Our sales team needs access to all of this information 24 hours a day. A potential customer is just as likely to contact us on a Sunday morning as on a Monday afternoon.”
SV Sports, formerly Schuylkill Valley Sports and based in Pottstown, PA, relies on inventory management systems, e-commerce platforms and CRM [customer relationship management] tools to streamline operations.
“These technologies help us manage stock, enhance customer service and optimize our sales processes,” explains CEO John Scipio. “They are quite essential to our success long term. This is the way business is being done across all industries.”
Among emerging technologies, SV Sports is continuing to explore AI for personalized customer experiences and predictive analytics to forecast demand. He added, “CRM and ERP [enterprise resource planning] platforms are becoming more prevalent in our operations, helping us better manage resources and customer interactions. Due to the unique nature of the dealer space, we are making investments to create software that is as unique as the business.”
Overall, Scipio sees technology as more of an opportunity than a threat. “Technology allows us to enhance our services and reach a broader audience online,” he says, although “that being said, the personal touch and local expertise we offer remain irreplaceable and tech helps us deliver that more efficiently.”
Hometown Sports, based in West Linn, OR has found success with its online team store offerings. “It just kind of keeps business flowing,” says owner Joe Monahan. “People can order at their fingertips. They go to a sporting event, see a shirt they like, go on the website and then order one while they’re watching the event. The next thing you know it’s at their doorstep or they’re picking it up. It plays to their emotions a little bit and they react.”
The dealer’s sales reps also count on real-time inventory feeds from supplier B2B sites when placing orders “so we don’t get so surprised a day or two down the road with the back order.
Among newer tech investments, Hometown Sports is looking at upgrading its direct-to-garment printers to provide more logo options and handle smaller jobs. The dealer’s graphic artists are already using artificial intelligence to help brainstorm for logo ideas.
Echoing comments from others, the one threat Monahan sees from technology is losing the “personal touch.” He elaborates” “You want to maintain good, strong personal relationships, especially to handle any transition. When the next league board comes in, you just don’t know what you’re going to get. You want to make sure somebody already knows you.”