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国产吃瓜黑料 Business Journal

The Shady World of Pro Deals

Are pro programs a legitimate perk for industry professionals or a discount sales channel run amok? Some insiders are calling the whole scene a complete farce. Here's why

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This story originally ran in the Summer 2020 issue of The Voice.

Who, exactly, should qualify for a pro deal in the outdoor industry?聽A ski patroller? Full-time mountain guide? Retail employee? Most everyone can agree that these professions get a green light. But how about a seasonal whitewater guide getting a deal on skis or a yoga instructor getting a discount on a tent鈥攇reenish yellow? How about someone who takes an avalanche safety course or an amateur photographer with a nature blog鈥攔ed?

What about average enthusiasts who just claim they do one of the above?

Figuring out who deserves a steep gear discount is crucial to running a successful brand pro program. Connect with the right pros, the theory goes, and a manufacturer helps these influencers do their jobs, while also familiarizing them with the gear and driving full-price sales to local retailers for a win-win. But if standards loosen so much that practically anybody can stock up on gear for 40 percent off or more, then pro deals become something else entirely.

鈥淧ro programs are a complete farce,鈥 said Wes Allen, owner of Sunlight Sports in Cody, Wyoming. 鈥淭he idea of a program where you discount to shop employees and people who work in the industry is a solid one. But anybody who鈥檚 being honest about it knows that the programs are completely out of control. It鈥檚 a way for brands to sell direct-to-consumer at a discount without violating their MAP [minimum advertised price] policy. And let鈥檚 be real, there are brands out there encouraging this behavior because they see it as an easy, high-margin sale.鈥

Without any industry-wide standards or watchdogs for pro programs, it鈥檚 tough to judge how well the system is really working. So we went digging for evidence.

The Broadening Definition of 鈥淧ro鈥

Employees at The Trail Head, an independent outdoor retailer in Missoula, Montana, run into shoppers with pro deals 鈥渆very single day,鈥 said owner Todd Frank. Sometimes they鈥檙e just showrooming鈥攖rying on boots and apparel in the store before heading off to order their gear directly from brands or on third-party pro platforms. Sometimes they鈥檙e attempting to use a prAna influencer card (good for direct purchases from prAna only) for a discount in the store, not understanding how the program works. Sometimes they鈥檙e getting their new pro-deal skis mounted.

鈥淥ver the last bunch of years, the number of skis we sell has dropped 15 to 30 percent a year, but the number we鈥檙e mounting has gone up,鈥 noted Frank. 鈥淧eople are very open about [getting a pro deal]. It鈥檚 a badge of honor in a community like Missoula. It makes you a legit outdoor guy.鈥

鈥淟egit鈥 is exactly the point of contention. Who鈥檚 legit? Brands and retailers alike agree that true industry professionals deserve a gear hookup, noting that gigs like ski patrolling, guiding, and wildland firefighting often pay so poorly that these pros would struggle to buy needed equipment. Without pro deals, 鈥渢here鈥檚 no way you could afford this stuff,鈥 said Steve Kunnen, an avalanche forecaster, educator, and guide for Washington鈥檚 Mission Ridge Ski & Board Resort, the Northwest Mountain School, and the Northwest Avalanche Center. He considers his pro deals an essential part of his job: This past winter season alone he bought two pairs of Atomic skis and goggles, a Patagonia ski pack, and Arc鈥檛eryx shell pants, all at 40 percent off or more. 鈥淧eople don鈥檛 realize you hammer your gear鈥 with daily, hard use, Kunnen said. 鈥淭here鈥檇 be a lot more patches and duct tape without pro deals.鈥

And in the right hands, pros do serve as valuable influencers. 鈥淚f a retail consumer sees a pro using a product, that鈥檚 a pretty big stamp of approval,鈥 noted Derek Young, who manages the pro program for Sawyer Paddles and Oars.

Getting gear into the hands of specialty retailer employees can also pay off for outdoor stores: Not only is it a valuable perk for recruiting workers, but an enthusiastic recommendation from a shop clerk can drive sales. 鈥淎ll you have to do is walk into [a store] and meet an employee who鈥檚 like, 鈥業 was using this last weekend鈥欌攖hat鈥檚 hugely positive,鈥 noted Gabe Maier, vice president of Grassroots Outdoor Alliance.

What some retailers do object to, however, is the extension of pro deals to the far margins of the outdoors, such part-time yoga teachers, students enrolled in AIARE avalanche courses, or 鈥渓iterally people who work in the parks department鈥攏ot Yellowstone park, but tennis courts,鈥 said Sunlight Sports鈥檚 Allen. Another gripe: Often, pro members are eligible for discounts well beyond their job categories, as in a backpacking guide also qualifying for ski boots. And some report concerns about straight-up fraud, with faux pros falsely claiming they deserve a deal. Young of Sawyer Paddles and Oars says applicants have sent him snapshots of themselves in a whitewater raft as proof that they鈥檙e professional guides.

Nobody in the industry tracks overall pro purchases, says Grassroots Public Relations and Policy Advisor Drew Simmons, but the organization has heard plenty of anecdotes from its member shops. 鈥淚t鈥檚 an income stream [for brands] that鈥檚 based on promotional, off-price behavior,鈥 Simmons said. 鈥淚t seems to be broadening and growing at a significant pace.鈥 (Several retailers say pro programs really started going off the rails about ten years ago.) Simmons added, 鈥淩etailers are understandably concerned that it has become such a significant part of many brands鈥 businesses that they will have a really hard time reining it in.鈥

And stores argue there鈥檚 much at stake when pro programs get bloated well beyond their original intention. 鈥淓verybody and their dog 85 has a pro form in a mountain town like ours, when they absolutely should not,鈥 said Brendan Madigan, owner of Tahoe City, California鈥檚 Alpenglow Sports. 鈥淵ou鈥檙e effectively retraining the public to shop online always and first, and to look for discounts online, which makes them think brick-and-mortar stores are always more expensive. Brands are effectively undercutting retailers.鈥

鈥淚f a product that we sell is readily available from the vendor for 40 to 50 percent less, it makes us look really bad,鈥 added The Trail Head鈥檚 Frank. 鈥淎nd it harms the vendors just as much, because they鈥檙e going to end up with nothing but a discounted sales channel.鈥

The Middlemen

You can鈥檛 talk pro deals鈥攁nd their potential for abuse鈥攚ithout taking a hard look at third-party pro platforms like ExpertVoice, Outdoorly, Liberty Mountain, and Outdoor Prolink. These businesses partner with brands to manage their pro programs, in many cases vetting applicants, facilitating orders, and providing other services in exchange for a fee and/or a cut of each sale. (Another site, IPA Collective, approves applicants and then connects them directly to brand pro programs.)

Such programs maintain that they help vendors find and vet influencers, and also instruct their pros to send anyone who admires their gear to buy it at a local retailer. 鈥淭he clear reason to have a pro program is to drive more full-price consumer sales,鈥 said ExpertVoice CEO Tom Stockham. 鈥淚t鈥檚 [about] finding the people who have the most credible influence with consumers, and making them better ambassadors for your brand.鈥

Reps for all platforms we questioned for this article (ExpertVoice, IPA Collective, and Outdoor Prolink) stressed they use strict protocols to evaluate applicants. 鈥淚f you鈥檙e not careful with your pro program, you start to undermine your price point and extend discounts too broadly,鈥 said Stockham, who adds that ExpertVoice uses anti-fraud software and cross checks with professional organizations鈥 databases to limit its members to true pros. A spokesperson for Outdoor Prolink noted that the company has five staffers who review the thousand-plus applications it receives weekly (90 percent are accepted, which the company chalks up to clear criteria on its website that weed out unqualified would-be applicants) and requires members to re-certify annually: 鈥淭his ensures that 100 percent of our base [is made up of] vetted professionals.鈥

Retailers aren鈥檛 buying it. 鈥淭he third-party sites are like drug dealers,鈥 said Allen of Sunlight Sports. 鈥淭hey鈥檙e coming in with this story about how 鈥榳e鈥檙e going to get influencers to push people to your retailers.鈥 That鈥檚 such a bunch of crap.鈥 He argues that third-party shoppers don鈥檛 have any real connection to their local outdoor stores.

Frank adds that the sites鈥 business model encourages them to view applicants with a generous eye. 鈥淸Third-party sites] are making commission sales,鈥 he said. 鈥淪o they鈥檙e going to drive as much volume as possible, because that鈥檚 the only way it works.鈥

What鈥檚 more, some retailers say their vendors are on board with such everybody-in policies. According to a member of the sales team who worked closely with Black Diamond鈥檚 pro program, left the company within the past year, and asked to remain anonymous, 鈥淯sing ExpertVoice captures a broader audience and requires less in-house maintenance. Yes, ExpertVoice is too lax with who they approve for pro deals, which Black Diamond is acutely aware of. However, it is also a huge revenue driver for the brand.鈥

In response, the brand shared a statement acknowledging that the pro program isn鈥檛 perfect, but Black Diamond continues to improve its system. It also notes that the brand is a key player in an industry working group on pro sales, which meets to share notes on best practices, including dealing with abuses.

So what鈥檚 the truth behind becoming a pro? We went undercover to find out. In our investigation (see p. 87), the third-party platforms we applied to accepted our fake profiles more often than not. 鈥淚f you鈥檙e willing to lie about who you are, it can be hard to catch someone like that,鈥 noted ExpertVoice鈥檚 Stockham. 鈥淏ut it will happen, and you鈥檒l be kicked off the platform forever. We will always want to work with retailers and others to figure out how to make the system work better.鈥

Some brands say they recognize the loopholes as well. 鈥淲e are aware of some issues regarding pro/industry purchase sign-up validation and are taking aggressive steps to correct any problems around our internal approval process as well as those of our chosen partners to 鈥 tighten controls in a way that ensures a healthy program,鈥 said Andy Burke, head of commercial sales at Outdoor Research.

Bro Deals鈥攁nd Consequences

In some pro programs, membership comes with an extra perk: periodic discount codes meant to be shared with friends and family, aka the 鈥渂ro deal.鈥 Recent promotions from Patagonia and prAna have offered each of their pros three codes at 40 percent off to share鈥攎uch to the chagrin of the retailer community (Patagonia鈥檚 codes were each good for up to $2,500 worth of gear).

鈥淭he question is, is a friends-and-family program really an extension of the pro purchase influencer program?鈥 asked Grassroots鈥檚 Simmons. 鈥淓xpanding accessibility to everyone you know鈥攊s that supporting the original idea [of a pro program], or is it a whole different area of revenue generation? Friends-and-family promotions seem like the number-one thing to train people to [wait for] a good deal every year.鈥

Besides, members of a pro鈥檚 social circle could otherwise be full-price customers鈥攕o why offer them deep discounts? According to prAna鈥檚 vice president of marketing, Jeff Haack, 鈥淲e want to give [our influencers] an opportunity to share their love of the brand and products.鈥 (No other brands we approached agreed to comment.)

But retailers suspect otherwise. Allen guesses these promos are a way to unload excess inventory, and Frank said, 鈥淔riends-and-family discounts are prolific because most of the companies are just using them to drive volume. We have a lot of publicly traded companies in the outdoor industry now, and they鈥檙e beholden to the board and the shareholders鈥濃攚hich means they鈥檙e under pressure to maximize profits every quarter by whatever means necessary.

Ultimately, such complaints about excessive pro deal activity can translate to concrete consequences for brands. Frank dropped Scarpa from The Trail Head last winter: 鈥淭here are people who should not be getting deals from Scarpa who are getting deals every day. Consequently, I just can鈥檛 sell it.鈥 (Scarpa did not reply to our requests for comment.) Allen has similarly scaled back business from several brands so far, and is 鈥渉aving super-hard conversations with鈥 a few others (he declined to name which ones).

And Maier of Grassroots predicts that overly generous pro programs will backfire industrywide. 鈥淚t seems like the programs were created to enhance brand loyalty,鈥 he said. 鈥淏ut where the programs are now, all the anecdotal information points to creating price loyalty. Instead of building up brand equity, it鈥檚 having the opposite effect.鈥

Reining It In

Nobody tracks the precise number of pro program members across the industry鈥 or what percent of total purchases they account for鈥攂ut our investigation shows how easy it is for someone without real credentials to get access to a killer deal. So how can the industry dial back the free-for-all and restore pro programs to their original purpose?

The first, and likely most effective, step: tightening up the vetting process. 鈥淚t would be a huge positive step to get some validation at all levels,鈥 said Maier. 鈥淚f these programs are truly intended to be there for influencers or people who are connected at retail, then what鈥檚 the harm in doing a little more work in verifying who鈥檚 accepted?鈥 Despite assurances from program managers that all applicants must pass strict scrutiny, our undercover investigation proves otherwise: In some cases, fake pros were granted almost instant access using fake credentials.

Instead, managers could require additional documentation if something in an application looks fishy鈥攕uch as professional certifications or, for retail employees, the store鈥檚 invoice number鈥攐r even call someone鈥檚 claimed employer to double-check. Another safeguard for retail employees: Mandate that all purchases be shipped to the store, as Patagonia does. The best-run pro programs also require members to recertify every year, Maier says, so former pros can鈥檛 hang on to their discounts.

And, 鈥渋f there鈥檚 not a direct connection to the local retailer, it doesn鈥檛 work,鈥 said Frank. Many programs do include a note in their acceptance email about sending anyone who admires the gear to their local outdoor shop to make purchases, but there鈥檚 currently no guarantee that members even know which shops carry the products. Young of Sawyer Paddles and Oars says he asks his qualifying pros to send curious clients to specific local shops: 鈥淚鈥檓 trying to build that bridge between the pros and the retailers. Retailers have to trust that manufacturers aren鈥檛 abusing that discounted sales channel.鈥 He even suggests taking the connection a step further: 鈥淢aybe it鈥檚 time for retailers to vet who鈥檚 qualified for programs.鈥

Wrestling these pro programs back down to size, of course, depends on vendors and third parties actually wanting to limit pro deal purchases鈥攏ot intentionally treating them as a lucrative discount DTC channel, as some retailers contend they do. The current state of pro programs 鈥渋sn鈥檛 a misunderstanding,鈥 said Allen. 鈥淚t鈥檚 not people making a mistake in executing pro deal programs. This is a calculated business practice that people are being dishonest about.鈥

Patagonia is one brand heeding its dealers鈥 calls for overall reform by embarking on a revamp of its own program. Among other steps, the company is reviewing pro categories and individual members and scrubbing those not deemed to match a stricter set of criteria, plus ending its twice-yearly friends-and-family promotions.

鈥淲e know we can have a deeper connection with fewer pros 鈥 that supports our business in a better way,鈥 noted Patagonia鈥檚 Bruce Old, VP of global business, and John Collins, leader of global sales teams, in a statement to The Voice. 鈥淲e also realize there are too many access points for discounted products in the market.鈥 The fact that the brand is investing in more environmentally and socially responsible鈥攁nd expensive鈥攑roduction practices, they add, helps make its full-price business even more important.

These kinds of brand-led reforms鈥攅ssentially, hiring tougher bouncers for the pro deal club鈥攁re likely key to reducing abuses and maintaining a more exclusive definition of 鈥減ro.鈥 After all, when everybody鈥檚 a pro, then really, nobody is. And that renders a pro program essentially meaningless.

Getting In: An Undercover Investigation

Just how tough鈥攐r easy鈥攊s it to get into a pro program? We went undercover to find out.

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The Voice launched an undercover investigation into 11 pro programs using three fake personas: a retail employee, a yoga instructor, and Minnie Mouse. (Photo: Courtesy)

Most brands and third-party platforms say their pro programs are for true outdoor industry professionals only, and that applicants are carefully vetted to ensure only the deserving get in. Not everyone believes it.

Industry insiders report concerns about several types of objectionable 鈥減ros.鈥 There are the applicants with questionable outdoor credentials鈥 part-time guides, one-time NOLS students, etc. There are straight-up liars posing as legit pros. And some retailers even charge that platforms will accept absurd applications that are obviously frauds (The Trail Head鈥檚 Todd Frank successfully applied to ExpertVoice as President James Madison).

We tested the system ourselves with three fake personas, complete with bogus credentials, designed to probe brands鈥 defenses against those concerns. 鈥淎pril O鈥橦ara鈥 posed as a retail employee using a free, fake pay stub created online. Yoga instructor 鈥淩ashida Samat鈥 submitted a screen shot of a real teacher鈥檚 online profile that didn鈥檛 include a name. And for our most ridiculous attempt, 鈥淢innie Mouse鈥 applied with a photo of a coffee shop punch card. We tried 11 pro programs (five third-party pro platforms and six brands directly). When admitted, we placed an order and, in all cases, received the gear (items will be donated).

In some cases, our applicants received a green light within a few minutes, suggesting no vetting process or a very limited automated one. In others, someone reviewed the application, but didn鈥檛 probe deeply into our supporting documents. Andy Marker, founder and principal of IPA Collective, who approved our application for 鈥淩ashida Samat,鈥 noted, 鈥淚 saw the [online studio] profile, and on that day, it was good enough for me.鈥

Ten of the 11 targets rejected Minnie Mouse (Liberty Mountain accepted her without question). But the results were mixed for April and Rashida.

 

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