Cabela's

[lkydvl]

As much as I like to see more sponsors for the forum I have a real bone to pick with Cabela's.

They cancelled a contract with an American supplier for black powder cleaning products, Sage Outfitters. In doing so that business almost closed its doors. Cabela's contract with them had Sage Outfitters employing a bunch more people to produce and package the line of products for them. Cabela's cancelled a LARGE order and left Sage Outfitters hanging. They are now down to operating that business by themselves and their young kids. All the remainder of their employees had to be let go.

All this for far less than $1 an item cost differential. I don't give a tinker's damn how much they support our forum. They screw an American producer and supplier, put a bunch of people out of work. I WILL NOT, EVER buy another thing from cabela's and will do my best to let everyone else know what they did and hopefully get them to not buy from them either!

Andre` R. Schofield

lkydvl

[Reg]

One of the oldest and most bitter rules of small business. Never and I do mean never put all your eggs in one basket. It is far wiser to have one hundred people owing you a dollar than one person owing you one hundred dollars.

:coffeecom

[darkroommike]

I did a Google search for ANY info on this situation and could not find anything. I assume then that you have insider info and some sort of vested interest with one of the parties involved, and I'll further assume that you are not with Cabelas. Since I don't have a dog in this fight I can only say, it's a shame when small businesses fail but 9 out of 10 small businesses fail, free market capitalism, laisez fair and all that. Note that one dollar differential per unit may not sound like much to you or me but one dollar per unit on an item that retails for under ten bucks is a huge difference in a company bottom line.

I wish Sage Outfitters good luck, hope they can recover from this staggering setback and further hope that they don't put all their eggs in one basket in the future.

You can't be a good Republican, Libertarian, or Tea Partiest and scream boycott every time a business practices good business. The business of business is business not hand holding.

[popper]

I wish Sage Outfitters good luck. Yes, that is the way it works and unfortunately many small businesses are forced to play this game.. Had a friend who sold a years supply of OMC stern drive/engine units to 1 customer. He about got fired for that, OMC would need to build another factory to fill the orders. Salesmen go overboard about commission sometimes.

[btroj]

They screwed an American business yet you don't mention who're new supplier is. If it is another American firm then some people lost jobs, other got jobs.

Cabelas is in business to make money. It isn't their job to look out for the companies they buy from.

Capitalism can be painful at times butit sure beats the heck out of the alternatives.

[BD]

Hopefully the lower bidder was an American business. In my neck of the woods this is a common story relative to LL Bean.
BD

[462]

Perhaps the newly contracted company manufactures a much better product, and the dollar difference at wholesale equates to a better value at retail. If that's the case, Cabela's made the correct decision, by looking out for its customers.

Perhaps, too, Cabela's customers either weren't buying Sage Outfitter's products or were dissatisfied with their performances.

Whether at the wholesale or the retail level, only satisfied customers keep a company's doors open.

We may never know, but I'm confident that there's much more to the story than just one dollar.

[shooter93]

Americans have become obsessed with the lowest price possible so a buck won't mean much to some people others it will. Now I'm sure I'll be the odd man out here (and I have been running a small business for decades) but the old adage told to me many many years ago was....if you ask someone why they started a business....and if they tell you to make money.....then never do business with that person. I've always held to that. Yes....a business has to make money but it's job is to make an excellent product or offer excellent service.....provide that at a fair price and make money doing it. We've evolved to where money is the object and not the good or service. In many ways I'm glad I'm old.

[btroj]

So Cabelas should sell a more expensive product which may irritate customers or drive them to a competitor?

I can see a manufacturers deciding that they have certain standards for the goods they produce. Cabelas is a retailer, they are in the business of responding to the needs and demands of customers.

Times have changed, we can either love in the here and now or we can sit back and wish for days gone by. Wishing for the past won't change the present.

[mold maker]

If Cabelas passes on the dollar savings to us, I applaud them. As a senior citizen on very fixed income, a dollar saved is a big deal.
My Dad always said "A penny saved, is better than two earned".
Like the Sage Outfitters employees, I lost my job, when the work all went to China. I know how they feel. All small businesses are excited when there is, a once in a life time order dangled in front of them. It's hard when you work yourself too the bone, only to have someone underbid you. It is however, what usually happens now days.

[Bad Water Bill]

Going back 50 or more years Sears Roebuck was famous for convincing a supplier to go in debt and expand to meet their orders only. Forget all of the folks that helped you over the years and just fill our orders.

Guess what?

As soon as the mfgr did what Sears asked Sears informed them Sears had a lower bidder. Meet or beat the new lower price or it is goodby.

Of course the new price was lower than it cost the mfgr to make the product so 0 orders from Sears.

Now where do you go? You trashed all of your old faithful customers AND you have a hugh loan on a new building and machinery to pay for.

I saw that time and again. But Sears was not the only one as most other businesses did and probably still do the same thing.

Only one egg in each basket makes more sense to most businesses.

[Boyscout]

A business must continually grow; it can rarely maintain. I once met with a company who wanted us to sell their product. The deal breaker: We reduce your commision after two years because that is "locked up, established business." It only takes one new buyer to turn your safe business on it's head or out the door. Putting all your eggs in one large corporate basket is the surest way to lose everything. Sears, Wal Mart, GM are just few examples of coporations who have done in a small business owner who think his ship has arrived.

[LUCKYDAWG13]

Cabelas has always dune me right so i will shop there. and i always look for
made in the U.S.A tag and that.s what i buy first when i can if we make it

[Gliden07]

I hope the new supplier was an American company too. I worked in retail/wholesale and industrial sales for years. Most everyone in this country wants the cheapest product made and then they want it to last forever! When a retailer goes to suppliers outside of the country we as a country complain that there putting Americans out of work! Well ya can't have everything! Corperations like Cabelas look out for there share holders bottem line. They probably found a company to sell them what they felt was a product equal to or better than the one from Sage at a better price. Don't expect them to pass the less than a dollar savings to there customers that will go to there share holders! And they'll all smile when the dividend check comes in the mail!!

The biggest problem with corperations in this country (IMO) is many of the people that make the choices for corperations have little to no experiance using the product there buying! There just "Bean Counters" and fifty cents less on a million "units" translates into more profit for the company and a bigger paycheck for them!

Again just my "opinion" and ya know what they say about "opinions"!!

[500Smith]

I would certainly like to hear both sides or understand better what happened. I like Cabela’s. It seems unlikely that if customers where buying Sage Outfitters products and sales were going well that they would just pull the plug on them.

Please elaborate.

[375RUGER]

Walmart employs these same tactics. Walmart can ruin even a big business. If walmart wants you to produce something for them at such and such a price you either do it or they don't buy any of your products. If I manufactured consumer products I'd stay away from walmart.

It would be good to know the rest of the story, cabelas that is.

[DRNurse1]

Headed to Cabela's tomorrow for some supplies. I will see what I can find out for myself. I agree with Reg and 462 and, though I also have no dog in this fight, I hate to see any small business overrun by a multinational. I will let you know what I find out, though it may be nothing from here.

[winchester85]

capitalism. that is how it works.

i started my business to MAKE money. sure i like to produce the best quality product i can, and sell it as cheap as i can. BUT i dont work for the sake of working, i work to MAKE MONEY.

[44man]

If you want to be disappointed with prices or finding what you need, go to Gander Mountain or Bass Pro Shop. I can not shop there at all on SS.
I remember when they were both great catalog outfits. One time in their stores was enough.
I used to go to PA, to Bow Hunters Warehouse. I understand Cabela's bought them out, not sure but $30 arrows are now $100.
Look at Midway! I go to Midsouth or Grafs and a lot of other places before I order from Midway. Sinclair is a great company too.

[reloader28]

Cabelas is to expensive to shop at anyway. Its fun to go and look around, but then everybody around here buys somewhere else.

I dont know a single person that buys reloading supplies at the Billings store. You can go anywhere else and get it cheaper than Cabelas. I have heard Gander Mountain is even more expensive.

[Longwood]

I drove about 40 miles to go to a Bass Pro store.
Nice looking store with lots of cute goodies.
Unfortunately not one thing I went there for.
Their reloading area was minimal, their prices were high and I kept getting a shaking head instead of "Yes,, right over hear".
I shall never go back.
When I asked why they had no Sharps rifles,,,, the counter person came back with questions like "Which brand"?
Show me a few, and I will tell you which one I will take.
NO SALE!
Next stop,,, the Stockade. Lots of Sharps, Rolling blocks, etc, etc, etc. A reloading section that has nearly everything. Gotta love it.

[quilbilly]

One of the oldest and most bitter rules of small business. Never and I do mean never put all your eggs in one basket. It is far wiser to have one hundred people owing you a dollar than one person owing you one hundred dollars.

:coffeecom

As a small time manufacturer and wholesaler, I learned that lesson 30 years ago - "protect your small accounts" and never trust the big guys. The big guys have bean counters who make decisions that have nothing to do with keeping their customers happy. As a result, I am still standing while a lot of the chain stores went out of business.

[popper]

Although most of the big box sports stores are now soccer mom clothing stores, they do have a place in the market. I've bought all my guns at them - but I DON'T get reloading supplies there anymore.

[mortre]

I'll buy where it is cheaper. We have a Wholesale Sports about a mile from Cabelas, so I will generally check Wholesale sports first (It's closest). Then Cabelas, if it's cheaper at Cabelas I buy it there. If not, I will get it Wholesale Sports on the way home. Generally, Wholesale Sports is cheaper unless it's more of a specialty item. I.E. 44 Special Brass, then it is usually cheaper at Cabelas.

Also, I have a Cabelas Club card that I put all my monthly bills on. Then pay off the card at the end of the month, so I generally will get $10-$20 of Cabelas credit a month. I just bought a Vortex Nomad spotting scope at Cabelas on their employee pricing weekend. $285 dollars after the discount ($55 dollars cheaper than Wholesale Sports), subtract the $98 of Cabelas points and it was about $200 out the door.

[captaint]

I actually enjoy buying things from Sinclair. It doesn't look like much has changed since Brownells bought them. They aren't the cheapest game in town, but their stuff (and they make some of it themselves) is great. They stand fully behind everything they sell.
If I order 6 things and they only ship 5 of them, when #6 ships later, it's for free, the shipping, that is. A pleasure... enjoy Mike

[mortre]

If I can't find something locally, I generally use Brownell's as well. They offer a military discount too!

[1Shirt]

The reality of this is the old saying "The business of business, IS business" right or wrong.
1Shirt!

[garym1a2]

I used to buy the cheapest stuff possible. Now I go for quality instead so I do not have to replace it all the time. I tend to buy guns in gun stores used or from other people. I never find great prices at Walmart, bass pro, gander,...

[Recluse]

Sorry but my sympathy for Sage Outfitters is exactly zero.

A huge account like Cabela's offered Sage boundless opportunities to expand their accounts to smaller or regional distributors, online distributors and retailers, etc etc.

Instead, it strongly appears Sage figured the Golden Goose would continue laying eggs forever.

Secondly, if in losing the account all the employees had to be let go that quickly, then cash management and reinvestment at Sage was poor. Don't be mad at Cabela's, be made at the accountant/s at Sage.

Thirdly, damn few companies these days are making it in single-line commodities. That is to say, if all Sage was producing were black-powder cleaning kits, they should've taken a look around a long time ago and entered the world of line-extensions and found either new uses or avenues for their products.

NONE of these things are new revelations in the world of small or large businesses--they've been basic "business laws" for the past century.

Being mad at Cabela's is just flat dumb. Without Cabela's, where would Sage Outfitters ever have been?

Cabela's laid the world at Sage's doorstep and it sounds like Sage blew it.

:coffee: