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ERIC ED370725: The Top Rental Items for University Outdoor Programs and Effective Buying Techniques. PDF

11 Pages·1992·0.38 MB·English
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DOCUMENT RESUME RC 019 113 ED 370 725 Webb, David J. AUTHOR TITLE The Top Rental Items for University Outdoor Programs and Effective Buying TeLhniques. PUB DATE 92 llp.; In: Proceedings of the 1991 International NOTE Conference on Outdoor Recreation (October 17-19, 1991, Moscow, Idaho); see RC 019 109. Speeches/Conference Papers (150) PUB TYPE Guides Non-Classroom Use (055) MF01/PC01 Plus Postage. EDRS PRICE *Adventure Education; *College Programs; Consumer DESCRIPTORS Education; *Costs; *Equipment; Equipment Utilization; Facility Inventory; Higher Education; Outdoor Activities; Outdoor Education; *Purchasing *Outdoor Recreation; *Rental Property IDENTIFIERS ABSTRACT This paper discusses the most frequently used rental items for university outdoor programs and describes strategies for saving money in purchasing equipment. A 1983 survey of 11 university programs indicated that the most frequently available rental items for summer and winter were sleeping bags, tents, backpacks, cross-country skis, and snowshoes. Applying financial and service criteria helps identify rental items essential for program activities. Criteria include the ranking of items by total rental frequency, total gross income, and per-item income; and the collection of data about other outdoor programs and their equipment needs. Purchasing methods include buying equipment through local retailers, university purchasing departments, and trade shows. Appropriate purchasing terms can save money, including closeouts, observing time limits for payment of merchandise, quality discounts, and preseason discounts. Attending trade shows offers advantages such as getting the best price for equipment, being able to compare products and prices, becoming aware of trends in outdoor equipment, and having opportunities for training and development. The paper includes a list of trade shows and suggestions for preparing and participating in trade shows. (LP) *********************************************************************** Reproductions supplied by EDRS are the best that can be made * from the original document. *********************************************************************** "PERMISSION TO REPRODUCE THIS U.S. DEPARTMENT OF EDUCATION IAL HAS B EN GRANTED BY MAT Office ol Educabonal Resea,ch and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER IERICI (7This document has been reproduced as received from the person or orgamtation ongtnattng tt C Mtnor changes have been made to improve reproduction quality TO THE EDUCATIONAL RESOURCES Points of view or optntons Staled In this dOCut INFORMATION CENTER (ERIC).- rnent do not necessanty represent official OEM position or pobcy The Top Rental Items For University Outdoor Programs and Effective Buying Techniques David J. Webb Brigham Young University AbstractThe top rental items for university outdoor programs explain how a are discussed. Specific effective buying techniques savings of $58,000 in one week was made by spending $600 . Methods and techniques for finding, obtainin& and lowering the cost of equipment prices from outdoor vendors and equipment sources are described. Outdoor Equipment Rental Services Extracurricular university outdoor programs typically offer one or more of these four services: (a) retail sales, (b) repairs (usuallybike and ski), (c) programs (clinics, trips, slide shows, events, outdoor etc.), and (d) equipment rentals. In 1990, 116 outdoor programs (about 77% of the $150,000, 38 other programs programs at four year colleges and universities) collected over each collected between $10,000 - $70,000, and 75 other programs each collected less than $10,000. Equipment rentals, besides being a possible source of potential revenue, permit an outdoor re) the ability to provide the right kind, program "piece of mind" in knowing that the program has quality, and quantity of equipment for its programmatic needs. Cr) dr.. Summer and Winter Rental Items I czo In 1983, a survey indicated what the most frequently available summer rental items were at 11 (c) university programs west of the Mississippi River: (a) sleeping bags (84%), (b) tents (69%), (16%), (h) backpacks (68%), (d) stoves (47%), (e) coolers (21%), (f) rafts (21%), (g) canoes wetsuits innertubes (11%), (i) ice axes (11%), (j) lanterns (11%), (k) sleeping pads (11%), (1) 121 2 BEST COPY AVAILABLE Webb I Buying Techniques (5%), (o) fishing gear (5%), and (p) (5%), (m) volleyball sets (5%), (n) climbing equipment cooking gear (5%). available were: (a) x-c eels (74%), (b) The same study indicated that the winter items most sleeping bags (47%), (f) ice axes snowshoes (63%), (c) tents (53%), (d) backpacks (53%), (e) and (j) ice skates (5%). Just (11%), (g) innertubes (11%), (h) gaiters (11%), (i) stoves (11%), organization because 74% of these universities rent cross-country skis doesn't mean your renting them. should, or that cross-country sld rentals are a good choice for a school now Rental Item Criteria rental programs could include Financial and service criteria to evaluate items in existing total gross income, ranking ranking items by total rental frequency, ranking rental items by for a program activity. items by per item income, and identifying which items are essential Gross Rental Frequency the rental area collects To identify the rental item with the most rental frequency, The University of information on how many times a specific type of item was rented. bag bags with 4700 Calgary (1988) rental item with the most rental frequency was sleeping second lowest rental rentals, second was telemark boots with 4687 boot rentals. Their frequencywas pulk-shuttles frequency was snowboards with 161 rentals, and lowest rental frequent rental (1988) was with 84 rentals. Brigham Young University's (BYU) most rental item was the downhill ski packages with 4332 rentals, and the second most frequent BYU's least frequent rental were 4 gallon jugs with no x-c ski package with 1156 rentals. high rental frequency rentals and badminton sets with one rental. Identifying items with a d.5crease in quantity or price. can suggest what items to increase or Items by Gross Income the total income generated for To identify the rental item with the largest grossing income, be collected. The University of Calgary's (1988) largest a specific type of item needs to generatingS 20,193 and second largest income grossing rental items were 124 sleepingbags $15,055. The lowest income grossing items were 5 was 125 telemark boots generating $633 in Canadian dollars. BYU's snowboards making $812 and 3 pulk-shuttles making cross generating $50,215, 88 highest grossing income items were 216 downhill ski packages and lowest grossing items, 17 camp grills grossing country sld packages generating $7,781 income indicates $2.50 and 2 hatchets at $0.00. Identifying items with a large or small gross guide the increase or decrease of what is making the bulk of the rental income which can inventory items. Per Item Income is used. Gross item inc.-frac divided To identify the per item income, the following formula item. This will either be a positive by total number of items divided by purchase price of the it is positive, then the item generates income, if it is negative, or negative dollar amount. If time to realize a break even or a positive the item requires a subsidy or a longer amount of 2 Tug-o-war ropes costing $1.00 each financial return. BYU's high per item income's were return on investment, in a 18,450% rented 80 times with a gross income of $369.00 resulting 122 Outdoor Recreation Proceedings 1991 Conference on In comparison x-c ski and snow toboggans a 877% return. 111 Twister game a 1,230% return, The percentage return the down hill skis a 116% return. package only had a 77% return and the outdoor programs that purchase price of the item. For only indicates income above the subsidy sources, the additional for by student fees or other 111 have operational costs paid that don't receive better equipment. For those programs income can be used to buy more or operating expenses student and staff wages or other subsidies, the income canbe used to pay equipment. or to purchase new 11 Program Items difficult. These are items for a program activity is not Identifying which items are essential other criteria critical for group outings. By all that individuals typically don't have or are that it can carry gear 11 in it's rental inventory, except BYU should not have a bike trailer country skiing people. Pulk-sleds for carrying gear cross underneath and bikes on top for 22 add a degree of safety by being and operationally, but they is a poor rental item financially Compasses are not a therefore remain as a rental item. able to carry injured people and for orienteering theyhave a very low rental frequency, yet financially successful rental item, will serve that need. programs nothing else Data and Principled Acquisitions doing. Visit, collect data. Identify what you are now To build or improve a rental program, do (or plan to do) and distant, and compare what you call, and study other programs, local make your decisions and After collecting objective data, with what they are doing. personally want, the trap of getting the equipment you implement your plan. Don't fall into needs, and the students that your program operationally instead of getting the equipment (patrons) want. 111 Purchasing Methods ought to buy, how do you get needs and identified what you Now that you have assessed your the most and pay the least? Local Retailers the local outdoor store the local outdoor shop and have The "expensive" way is to go down to example, sleeping bags cost the with a 5-15% discount. For sell to you at retail or retail 11111 $112. He gives you a 10% markup and prices them at retailer $70.00. He adds a 60% retailer makes $30.80 on You save $11.20 per bag. The discount and you pay him $100.80. each bag. University Purchasing Departments department find some sleeping bags. the university purchasing The "easy" way is to have specifications. They easily can expensive bag that meets your They will try to find the least the benefits of different usually don't have the experience to compare compare costs, but will be able to get the bags for bag features. They probably bag manufacturers or sleeping bag that you selected purchasing department picks the same wholesale. For example, if your 123 4 Webb / Buying Techniques bags, saving $30.80 per bag buying direct in the first example, you would pay $70.00 for the buying 10 bags you would save $308 rather than buying through the local store. If you were 10 bags from the local shop for $1008, you buying them factory direct, or instead of buying could buy from the factory 15 bags for $1050. Trade Shows The "pay less than wholesale" way can This is the way I like to make most of my purchases. advantage and (b) wisely use be done if you (a) understand and use buying terms to your look at purchasing terms. buying trade shows to your advantage. First let's be sold for at retail, there is a wide range Just as there is a wide range that an item could payment terms that could reduce that an item could be sold at wholesale. Here are some the price you pay. Purchasing Terms distributor wants to get rid of. They 1. Closeouts. These are items that the manufacturer or flaw. Ask color, or style, or may have a cosmetic or functional may be last years mc del, or them out. I've paid $45 instead of $89 if they have closeouts, and why they are closing (functional flaw) which we would (wholesale) for semi-dry suits that had a tight ankle seam paid $200 for kayaks with a bad paid job easily repair when or if it ripped out. I've also (wholesale). I've paid $45 a pair for metal (cosmetic flaw) instead of the usual $399-$450 because theywere last years model and didn't edge touring skis instead of $119 (wholesale) have this years "paint job". credit often 30, 60, 90 days, even 1 or 2 years. It 2. Dating. This refers to extensions of For example, I receive ski products describes the time limits for payment of merchandise. March because of 120 days dating. Dating in October but don't have to pay the invoice until of ways: can be expressed a variety the 1st day of the month and you must 5% lOth/net 30 means that you will be invoiced on before the 10th of the month you can discount pay by the 30th, however, if you pay on or your bill by 5%. invoiced on the 1st day of the month and you 5% 30/net 60 FFA means that you will be bill if you pay within 30 days you can discount your must pay within 60 days, however, deduct the cost of freight off of the invoice. by 5% and FFA (Full Freight Allowance) bill by 2% if you pay within 10 days, full 2110 EOM means that you can discount your payment due at the End Of the Month. but don't have to pay for it for 2 years. 2 year dating means that you get the product now This would allow you to buy ski Ski companies are ones likely to have this program. skis now and pay for them next year. The boots now and pay for them this year, and dating progam and $99 for a drawback to this is the skis might cost $95 for a one year being charged interest. two year dating program. You are 124 Recreation Conference on Outdoor Proceedings 1991 because universities anticipation to their advantage Universities can use 3. Anticipation. long dating terms have. If a company has a cash flow problems stores don't have the same (anticipating the than required business, if you pay sooner part of doing as a regular October and must I receive skis in give a discount. For example, payment date), they may for them in the month anticipation. If I pay March 1. There is a 1.5% per pay for them on the months of making the payment before then I have anticipated end of October 1.5% per month which is 4 months at January, and February, November, December, equalling a 6% discount. down, price per item goes buy more of an item and the Quantity Discount. When you 4. 25-50 additional skis as an example, for each quantity discount. Using you are receiving a discount. receive an additional I% pairs bought you might receive for placing an is the discount you A pre-season discount 5. Pre-season Discount. Orders placed in for selling that item. period prior to the main season order within a time discount. receive a 1-5% pre-season receive next October might April for ski goods you will Purchasing example of skis whose purchases. We need 24 pairs make some imaginary Let's use these terms and buy last larger and smaller sizes we can $119. We find out that in the base wholesale price is 12 pair of skis we pay $588 for 12 pairs. The other "closeout" for $49 each or years ski on 356.60), 0% discount ($1,428 - 5% = $1, minus 5% pre-season $119 times 12 skis ($1428) discount month maximum anticipation 1.5% per month with a 3 discount for quantity, $2,856. By 24 skis at $119 it would cost $1,295.55). If we had bought ($1,356.60 - 4.5% = pay$ 1,833.55 anticipation discounts we only pre-season and buying closeouts, and applying subtract $600 from trade show cost $600 the hotel, food, etc. for the saving $ 972,45. If airline, realized at the savings. If other savings were there is still a $372.45 the $972,45 savings and be greater. At made, then the savings would where the ski purchases were same trade show paying $33,000 for trade show i ended up Industries of America annual the 1990 United Ski $80,000. This suggested retail value was price was $42,000 and items whose base wholesale asking and taking every attending the trade show and savings was directly related to my the last attending trade shows, over there is some expense to discount available. Although attending trade for every $1 spent in in equipment purchases nine years I have saved #3 department (or guiding you purchase items and purchasing wisely shows. Wisely selecting Besides, it's fun equipment at lower costs. provide more and better wisely) will allow you to decisions! to make good buying Trade Show Tips attend? trade shows should they attend trade shows? What Why should outdoor programers trade shows? How should they prepare for I've attendance is to save money. first reason for trade show Discounts on purchases. The $42,000 whose wholesale price was paid $33.000 for items indicated that at one trade show I trade result of going to the paid $11,000 belowwholesale as a and retail value was $80,000. I miscellaneous for me to go and transportation, food, lodging and show. It cost $600 for the l25 Webb Buying TechnicfaL; outdoor program from having to spend 6 days of time. By going to the trade show I saved the for trade show attendance is $10,400, or saved $1711 per day for six days. The first reason and special pricing. to save money by using trade show discounts attend trade shows Comprehensive product and price comparison. The second reason to in catalogs has little value is to be able to see products and compare prices. Looking at items items as part of a trade show. when compared with looking and perhaps briefly using the prices in another catalog has little Looking at prices in one catalog and comparing thetn with with the manufacturers sales value when compared with looking at prices in one catalog competitors trade show representative, with both of you knowing that later you will be in a the competitive environment of booth looldng at the competitors product and pricing. In price their product lower. When you can see, handle, a trade show sales "reps" try harder to the product best suited for the job. and try a product you have a greater chance of selecting by the designer or owner of Technical or product information can be given to you, at times have better information the company. This allows you to make a better choice because you the best product was selected it when selecting equipment for your program. Because time in replacing it, bring should last longer, require fewer repairs, reduce administrative income. The second reason greater patron satisfaction and in the long run generate more right product for the right price. for trade show attendance is to save money by buying the shows is to be able to see generally the Awareness of trends. A third reason to attend trade items that may be the hot new or direction an entire industry is moving as well as specific and other companies started tired old trend. When Burton Snowboards continued to grow their market and other companies building snowboards, or when Rollerblades broaden (if they weren't already renting started building in-line-skates, many outdoor prop/ants outdoor programs and shops that snowboards or in-line-skates) were quick to catch up with products. A third reason for trade show attendance were already renting and selling these right time and to stop buying products is to save money by buying the right product at the at the right time. trade shows is to be able to attend Training and development. A fourth reason to attend associations frequently technical and educational sessions. Outdoor companies and and management. At Expo West (the trade present seminars regarding products, trends, boating manufacturers, distributors, show for backpacking, camping, climbing, and paddle topics on: and buyers) held this August 1991, the seminars included Outdoor Retailer, and "The Sixth Annual Paddlesports Seminar" by Canoe Magazine, DuPont. American Paddlesports Asso- "Product Liability and Negligence Concerns" by North ciation. Beyond" by Recycling Re- "Towards a Greener Outdoor Industry: Recycling and source. climbing gear manufacturing "CEN Standardization and Certification" (European Recreation Coalition of America standards) by the Climbing Sports Group/Outdoor (ORCA). 126 Outdoor Recreation Proceedings 1991 Conference on Association of Sea Kayaking. "General Meeting" by the Trade /Tatshenshini Wild Rivers" by Michael Down "Preserving the Wondrous Tatshenshi%ii Conservation Alliance. marketing, ski tuning, hiring, about bicycle wheel building, I have attended seminars all for free as part safety, customer service and more advertising, putting on special events, river in Reno. All afternoon and evening is spend on a of the trade show. At Expo West an boats on the river bank manufacturers have 80+% of their the canoe, kayak and sea kayak I spent 3 hours paddling, take for test paddles on the river. for trade show attendees to confident about how these This allowed me to feel more spending 5-10 minutes in a boat. paddling the open who has paddled them. After boats perform than just talking to someone select the boats for our with the sales rep it was easy to cockpit sea kayaks and talking Knowledge performance and comparative pricing. outdoor program base on comparative knowledge will allow you to strengthening, and sharpening your is power. Acquiring, attendance A fourth reason for trade show provide a better service and outdoor progxam. (for free). technical and educational sessions is to save money by attending be able to strengthen to attend trade shows is to Build relationships. A fifth reason manage- representatives and outdoor equipment company relationships. By meeting sales leaders in the climbing, skiing, establish a relationship. Significant ment you begin to has a become acquaintances. Later when a company bicycling professions and other can take advantage the sales rep might call you so you can special that will help your program, remembers you and need help, the company management of the opportunity. When you informed about Sports figures "drop in" and/or keep you maybe able to help your profgam. have been staying together in outdoor program professionals their lecture circuit. College and networking that occurs trath shows. The camaraderie the same motels while attending another of special valuable is the sharing with one is valuable, but perhaps even more show. This sometimes individually discover at the trade products and prices that they show attendance is to save benefits all! A fifth reason for trade results in group buying that solve problems. relationships that sooner or later save money or money by building relationships, and appropriate equipment, building Besides saving money, selecting the "gear hogs" fun work. fun! They are hard work, but for gaining knowledge trade shows are Attend Trade Shows You Might served my needs the best are these: The trade shows that have camping, climbing, and paddle trade show for backpacking, 1. Expo West. This is the growing and could be and buyers. The show has been boating manufacturers, distributors, don't buy any would need to attend, especially if you the only show many outdoor programs in a three day period. Contact: Approximately five acres of gear to look at type of snow skis. telephone (714) 499-4591. OUTDOOR RETAILER EXPOS, related equipment and ofAmerica). Seventeen acres of ski 2. USIA (United Ski Industries is the show to attend climbing, and other type gear. This five acres of backpacking camping, telephone (703) 556- well as other gear. Contact USIA, if you buy downhill and x-c skis as 127 Webb I Buying Techniques 9020. show by the same people Market. This trade show is the same 3. Outdoor Retailer Winter being that at the Winter Market in Reno with the difference that put on Expo West in August is done (instead of the paddle demo-ing x-c skis at Solitude Ski Resort two to three days of is the show to attend. paddle boats or downhill skis, this boat demos). If you don't need EXPOS, telephone (714) 499-4591. Contact OUTDOOR RETAILER eight acres of bicycles. trade show for bicycles. Seven to 4. Interbike: This is the west coast those on the East Coast. If in Atlantic City, New Jersey for A week later this show is held of these shows is a must. repairing mountain or road bicycles, one you are selling, renting, or (714) 722-0990. Contact: Interbike Expos, telephone is the show to attend for rdsailing Industries Association): This 5. ABIA (American Boa (waiting and rigged spend two days of testing sailboards buying windsurfing gear. You can this show I bought full days in the exhibit hall. One year at on the beach) and two more spend $65475 for each planning to buy 30 wetsuits and to wetsuits for 25$ each. T had gone the whole trip and I was able to buy from that wetsuit purchase paid for one. The savinp AWIA, telephone (800) 333- wetsuits than I had planned! Contact more than twice as many 2242. Outfitters and the the Eastern Professional River 6. America Outdoors: Formerly Outdoors. joined together and called America Western River Guides Association, now with the location changing trade show is held in December Their annual convention and bujing rafts and rafting gear. and show to attend if you are each year. This is the convention 524-1045. telephone (303) 377-4811 or (612) Contact America Outdoors, Attendance Frequency I haven't bought sailboards these shows every year but I don't. I wish I could say that I go to all in two years when its since I went to the ABIA. I plan to go for 4 years and it's been four years USIA show only once. The wetsuits. In 9 years I missed the time to buy new sailboards and when we need to by rafting convention is on I attend every 3-4 years America Outdoors (rafting) assistant bicycle manager and student going to Interbike, but my student gear. I have stopped the general sporting place for the last 4 years. I have even gone to bike managers have gone in my Association-Anaheim, CA) in the Fall (National Sporting Goods goods shows like the NSGA had shows are good for team sports but (Atlanta, GA) in February. These or the Super Show SCUBA adventure sports. If you deal in outdoor programming and outdoor very little value for shows windsurfing, there are other trade sport specialty like bicycles, or or another adventure before buying equipment. money by attending it associated with that sport that would save you and Participation Trade Show Preparation P.L.A.N. and Before-During-After. Prepare for trade shows by P. L A. N. Know what items and time. Know why you are there. Prepare: Prepare ahead of 1. P 128 Recreation on Outdoor Proceedings 1991 Conference manufacturers. Make list of exhibiting want to buy. Study the how many of each you questions of the items you have show or the first day with reps appointments before the about. exhibitors. Plan floor plan of the of the show. Review the Learn: Learn the layout 2. L efficient use of your number to make the most and item reviews by booth your appointments time. prices comparative items. Examine merchandise, compare Analyze: Scrutinize the 3. A and ideas. booths for new products and terms. Check the Listen to the pros at the manufacturers and products. Network: Encounter new 4. N programers ideas with other university socials. Meet and share seminars and evening during the show. trade show Before arriving at the usually free, or at in advance. This is show two to three months Pre-register for the trade to three hours site registration can waste one registering at the door. On least cheaper than motel by getting in advance. Select a lodging two to three months standing in lines. Book phone book. Call to the yellow pages in the the Chamber of Commerce or a list from Ask for "business rates for the same room. Motels have several different compare rates. recommendations. Ask program for rate". Call the local outdoor man's rate" or "show different times of airlines and flights at they stay. Check several other progamers where leaves very late "red-eye" flight. This flight tight budget consider a the day. If you're on a Arrive the inconvenient but cheap! early in the morning, is very at night and arrives very plan to first day of the chow. If you be rested to begin the day before the show so you can registration luggage, room, or show and you have transportation, arrive the day of the show Trying to return Plan one day to return. of the 3 days of the show. problems, you may miss 1 the last day of the show. ends could make you miss the same day a show During the trade show. cereal, buy bring a cereal bowl and spoon, money and time Dress professionally. To save To save time and money stop and have breakfast in your room. milk at a convenience store show (restaurants snacks to eat at the trade for a sandwich, juice, and at a convenience store business cards ready the cost). Have plenty of two to three times in the show do have food at On the first given by others in one place. all of the business cards you are to hand out. Keep catalogs, only long enough to pick up the aisles making brief stops day walk up and down Get appointments for the next days. quick look at items. Make price lists and perhaps a very cards, and plenty of business pads, pens, calculators overview of the show. Note a general will be needed at lunch and other items solid bag to carry catalogs, a comfortable, roomy, change clothes, show, go where you can eight to ten hours at the the show. After spending items or prices; with others to learn of dinner and then network relax for 10-15 minutes, eat day. Get some questions for the rep the next develop a written list of or study catalogs to check out the night-life accomplishing your goals, the process. After good sleep and repeat fill out their order with a rep, have them If you write an order and parties if you desire. dates with all calculations com- discount, delivery dates, payment completely, listing all you get a copy. pletely carried out. Make sure 129 1 0

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