We’ve commented before on the fly fishing industry’s woes – both those due to the economic situation and those that appear to be self-inflicted.
Now, an article from a Mount Washington publication lets slip the information that Sage rods have also suffered layoffs (as we suspected), and that the industry’s less capable of putting the screws to small, independent dealers (judging by the emails I’ve received, small dealers aren’t exactly enamored of the treatment they’ve received at the hands of a couple big fly fishing companies).
For example:
Companies that once demanded large yearly orders to maintain a dealer ship are begging small shops to take on their lines at greatly reduced entry fees. I spoke to a sales representative from a reel company the other day who was promoting a new reel. When I asked how much it was to open a dealership he said it was normally a $1,000, but at present they would only ask that you buy three reels.
Even more interesting is the continuing “Big Boxification” of upper-crust brand Sage:
One of the most shocking renovations announced a few weeks ago was that the Sage rod company would market a rod exclusively for Cabalas. Any shop that has been one of their dealers for any length of time and has maintained the inventories that Sage has required over that time period must be mortified. In my opinion the company sold out their dealers and sold their soul to Cabalas.
Sage fly rods is a business after all, and they go where the money is, but it’s interesting to see this change occur, which – like telling someone their baby is ugly – is pretty hard to take back. For that matter, I’m counting Sage among the companies that have been slow to recognize the tectonic shift occurring in the marketing world, though you’ll soon see that one of the Sage family of companies is making some noise on the Internet.
In fact, it appears that several companies are suddenly (desperately?) acquiring Internet religion, and I’ve been contacted a couple times with what I’ll label as somewhat dubious propositions.
Singlebarbed and I are huddling in an attempt to develop an editorial policy that’s fair to us and our readers, and we’re on the verge of announcing something that should provoke a little discussion from the brownliners and Undergrounders alike.
For that matter, it’s clear to me the Trout Underground probably won’t continue in its present form forever; I can safely say the Underground won’t end 2009 the same way it began it.
Change is inevitable, but until then, see you on the river, Tom Chandler.




























I have been on the rage with Cabela’s for some time and the funny thing is that it is the corporate fly fishing still sucks (no names) crowd that are the most ambivalent about the whole thing.
Now my rage was not directed to Cabela’s as a fly fishing retailer it is more to do with their appetite in changing swallowing the fair business landscape.
Cabela’s was to enter Canada with an anchor store in Quebec at the same time backlash from communities regarding subsidies was hitting the fan. Most folks just shrugged and passed me off as the lunatic that I am but in the long run the genetically modified chickens with their hackles dragging on the ground are coming home to roost. Corporate Fly Fishing Still Sucks, Still.
castingoutloud(Quote)
Let it be known the only dubious proposition you ever got from me was to share a beer and curly fries in Denver!
James Hathaway(Quote)
Frustrating and understandable all in one breath ? Sage has tried to keep it Made In the United States. Does that count for anything these days.
Do the Cabela’s customers pay 50 bucks for repairs/replacements ?
Bill Downs(Quote)
@castingoutloud: I’m not really sure what corporate fly fishing really is; some of the corporations involved in fly fishing do a lot of good stuff for the sport.
@Hathaway: Are you forgetting those stolen moments in SF? I feel dirty…
@Bill: I’m not really sure what you’re saying. I’m talking about Sage’s sales, distribution and marketing, yet you mentioned manufacturing and warranty. I don’t have 23+ years experience in manufacturing (I do in marketing), so I tend not to comment on that aspect overmuch.
The “buy American” discussion is certainly a lively one, but separate from this discussion.
Tom Chandler(Quote)
The evident results perpetrated by the contraction of the consumer’s spending habits are just an answer to the question: “Do I need this ___________?†In my case, I could fill in the blank with “new reel†or “a nice 7 or 8 weight rig for the up and coming shad run†or “…â€. I could go on forever. My answer is always no, I do not need, I just really-really want.
On the flip side, big-box master of the known universe; Walmart just posted earnings of $3.79 billion (down from 4 billion last year. You can’t win ‘em all). The consumer is still spending money in very selective locations that ooze lots of perceived value. Every manufacturer wants a section of Walmart’s shelves if they want to survive.
Big-box master of the sporting universe; Cabela’s, posted $879.4 million in the fourth quarter of 2008. A mere one percent drop in quarterly earnings from the previous year. Folks are spending less at the local shop, sorry Western Sport Shop, and eye balling what may or may not be a deal at stores like Walmart and Cabela’s. For a business like Sage, they are going to have to move product, post a profit, and do it by any means possible till the consumer’s cash flows like boxed wine at a dinner party at my house.
As for myself, I hope my 5 wt can handle a shad or two, I hear they fight like tarpon.
Demian(Quote)
If Sage can make an american made product which has the same level of quality as it’s past products have for a big box, good for them. I’m not sure what level of rod they’re planning in this venture, i.e., high end vs low end. I’m gonna ssume it’s something in the lower to mid level price range- isn’t that what we’ve all been begging for?
40 Rivers To Freedom(Quote)
40Rivers nailed it. I suppose we’d like to see them admit to driving the price of good tackle past the point that allows Dad to pass the legacy to his children, but that’d be akin to getting bankers to apologize for jumping into the CDO market with both feet.
“Something in the lower to mid level price range” is all that’s required, the nosebleed stuff is best left to poseurs that feel the need to add legitimacy without working for it.
KBarton10(Quote)
Same stuff all over – from Silicon Valley to small tackle manufacturers… really poor positioining, market strategy, and sales direction. I am really glad I left the business world behind – more or less.
Tom, wanna buy a roof tp tent for your vehicle? http://www.autohomeus.com
Mike Spies(Quote)
Purportedly, the big deal with Cabelas was the return of the Sage XP line, exclusive to. Some rave over the stick, and that may be part of the draw – but the price is still above what the average bear will tolerate on a given Sunday.
Note: Sage has been selling up to the Z-Axis at both BassPro and Cabelas for a while. I’m pretty sure I saw them (at least in BassPro) over a year ago. Maybe they’ve just been being quiet about it. Also, Florida-types have grown accustomed to seeing very high end gear in BassPro ever since they took on World Wide Sportsman.
An exclusive XP in Cabelas? I don’t really see the news in that. You’ll know there’s a hurtin’ going on if the TCX and carbon fiber spools (both ridiculous for the times, IMHO) show up in those places by spring.
Michael(Quote)
40 rivers and Co. this is where you and many others miss the point.
About big box retailers.
For the record the deal is Cabela’s had Sage re-release the XP line the same line Sage discontinued and had Mom and Pop operations sell off to make way for new rods.
As for the good corporate image here is a good start
http://www.bigboxswindle.com/
There is a great example of how the big box home stores conspired to force Black and Decker to move production out of the US or they would refuse to stock the products on there shelves.
more on the topic
Free Lunch by David Cay Johnston
http://www.freelunchthebook.com/
IMHO bottom line how much of a stretch is it that Cabela’s will start telling the rod and reel companies what and where to make their goods.
Yes you will get your $200 Sage rod but are you going to feel good about it?
and are you going to feel good at the self pay checkout line and heading home to spool up your new reel? don’t forget your backing.
In my world as it stands. I plunk down my Ari Hart reel ask the fly shop dude about a good SA line. Ask he if will look at the reel and put the new line on, backing is never an issue, it is done properly. I ask no questions pay the bill and head to the river.
castingoutloud(Quote)
I really feel like in this economy, a lot of large companies will probably start making marketing and distribution decisions that might be out of character from the past years. Sage Pushing a rod through Cabelas is, I believe, the first in a long line of high end companies simply trying to reach a vast audience that they would otherwise miss out on with their more expensive rods. I say good for Sage. Personally id like to see companies like Abel jump on this bandwagon. On the other Hand, Independent shops are also a huge part of the industry, and while the prices are usually higher than a place like Cabelas, i’ve always felt like im supporting Fly Fishing more in this situation. At least I know my money is going towards a shop dedicated to fly fishing and not hunting, camping, hiking, rafting, rock climbing, skinny dipping, and any other non-fishing sport a place like Cabelas might support. Long story short, Its nice that a company like Sage wants to market to a larger population, but isn’t supporting Fly fishing directly more important. However, not everyone can afford a $800 sage rod, so maybe this base line model sold for less will open the doors for people to shop independent shops and purchase more top shelf products later on.
Im sure there are some advantages to all of this mayhem. Let me tie a few more flies and drink a few more PBRs and I might come up with a more creative response.
-ben
Benjamin Rioux(Quote)
Ugh. This really isn’t necessary. This may be the future of marketing for the fly fishing industry but it’s not my future. How many of the top twelve rods of all time will ever be available at Cabela’s? The only use I can think of for an XP is as a priest and even then you only need the butt section.
This sort of discussion makes me want to travel to Mountain Home Arkansas and listen to Bob Nunley pontificate on tapers, companionable women and the joy of idle time as he shoots pool and lets the varnish dry. Or to sojurn to cental Pennsylvania and cast glass in Mike McFarland’s back yard. Or even make a pilgrimage to Flagstaff and sit at Mark Steffen’s feet as he levitates above while I dream of a mountain creek, wild 12″ bows and a 7′ 2/3. This is the kind of marketing that works on me.
frogmorton(Quote)
I’ll bet we won’t see any of Chris’s rod there, so they can have Sage I don’t care.
David
David Roberts(Quote)
Change, bah humbug! The only person who likes change is a baby with a dirty diaper.
Ethan(Quote)
Great discussion here, though to me this actually feels like two discussions.
First, if you were a Sage dealer – and spent years promoting the brand and ponying up for Sage’s pre-season buys and rod programs – you’d justifiably have questions about a big-box only Sage fly rod, even if it was last year’s rod.
I’d suggest we’re not just in the grips of a slow economy, but we’re also seeing the “dealer-only” distribution model starting to fray around the edges (perhaps wholly unraveling in places).
Another of the Far Bank companies (Sage, Rio, Redington) is exploring an online sales model designed to “protect its dealer channel” while still allowing it to sell direct.
The dealer model faces all sorts of difficulties when it confronts the irresistible force of the Internet, and yes, for some it’s going to be a bumpy ride.
This is one place where the suckitude of Orvis’ fly fishing gear in the mid-90s might pay off handsomely for the company, which seems to have righted its fly fishing product line.
They aren’t trapped by a dealer-only distribution model, and a quick perusal of the online retailing trade rags makes it clear they’re rapidly evolving and refining their online selling system.
What, exactly, are Sage, Winston, Scott and others doing to compete?
Second, I hate to sound like one of those “social media or die” partisans, but the marketing universe is shifting, and Sage has been slow to accommodate that shift.
Prior to the recent “Web 2.0″ explosion, it was possible to sit back and communicate with the market via largely one-way media channels; magazine ads, trade shows, reps…
Today, those carefully cultivated brand identities are adrift on the Internet, and brands like Sage – who aren’t exactly participating online (their Web site features exactly zero engagement channels) have largely lost control of their online brand.
Contrast that with Patagonia, Orvis – even the bigger shops like Bill Kiene’s Sacramento fly shop – and you see the growing daylight between those who are engaging customers and those who haven’t.
I’m not suggesting online is now the only way to market, but the online stuff is fast becoming a key part of the marketing plan, and soon we’ll see who can adapt, and who’s about to become fly fishing’s equivalent of the Big Three automakers.
Tom Chandler(Quote)
Change is a constant but the current times seem to suggest that it’s accelerating. I think only guy who would classify all the change that’s happening as normal would be the birthday boy himself – Charles Darwin (turned 200 on 2/12). He was keenly aware that the ones who survive are not the biggest nor the smartest, but the ones who are able to adapt. In essence, change or die.
El Pescador(Quote)
Is it possible that a realignment in price points is in order? So many people are making less, have less or are charging less for their services year-over-year. As a professional photographer, I am constantly (since late last year) having to play “The Price is Right” with potential retail clients. It’s more like a limbo dance; How low can I go? If you look at the supply / demand / price curves, there is a point where demand will increase for Sage rods as price decreases. Their per-rod profit may be smaller, but economics says Profits will go up – Supply goes down – Demand goes up, and long-term price always goes up again. How many of you are walking into US auto dealerships, and saying “I’ll give you sticker for that car!”? Here in Texas, a friend of mine drove a brand new 35k Ford truck off the lot for 18K. I agree – change or die. I am not anti-union, but it seems obvious unions are part of the problem with the US Auto industry, just as “protecting dealer channels”, and ignoring the power of the internet are part of the problem with fly rod manufacturers.
shannon(Quote)
I’m sure some companies are going to try out the direct sales model especially those that have not been able to sign up a lot of retail shops. I can’t see Sage, Winston and Scott doing that without risking the loss of their long time independent retailers.
About 8 or 10 years ago Scott made a deal with REI to sell some of their rods. Kaufmann’s Streamborn went ballistic and quit carrying all Scott rods until Scott came back begging on their knees. So we’ll see how the independent shops respond. But the shops are going to be struggling even more anyway. At least 50% of all the fly rods on Ebay right now are new ones listed for regular retail prices by fly shops. I can’t see how that’s going to help them because I don’t think thats what people are looking for on Ebay. Sage bought Redington a few years back, I was told that it one of their incentives in that was to gain access to Redington’s Korean manufacturing. So how long will they go on making their rods in the US? I’ve got to believe that at some point the big fly rod companies are going to have to break down and let go of their retail price controls and the independent shops are going to have to learn how to be true specialty merchandisers.
greg hall(Quote)
At least a couple of the big fly shops, Leland of S.F. and TCO of Penn., are using ebay to sell their own merchandise as well as the used tackle of their customers. Whatever the used tackle brings on ebay(minus fees) is applied to new tackle purchases at the store.
Unions are no more a part of the Auto industries problems than any other labor force is to any other industry. A very convincing argument can be made that a large part of the current crunch is due to wages dropping as jobs have been moved overseas and that American corporations have destroyed their own customer base. Living wages, health care and safe working conditions are ultimately good for the nation’s fiscal and moral health. Before the unions we had none of those benefits.
frogmorton(Quote)
I agree with frogmorton but the union/labor is another issue.
I think this is interesting. An Abel Creek 1 Standard Arbor is being offered on Ebay by a fly shop. The price is regular retail but with free fly line and backing and free shipping. I emailed them tonight at about 8:30 to see if I could get fly line xxx if I bought the reel. I had a response from them in less than 10 minutes! Yes I could get the line I wanted and they ask if they could invoice me directly to avoid the Ebay fees (for them of course). I wonder how many of these other shops running stuff on Ebay are doing similar end runs?
greg hall(Quote)
@Pescador: There’s evolution and there’s revolution, and right now, I’d suggest we’re seeing more Che Guevara than Darwin. It’s interesting that some of the biggest AFFTA companies want the organization to grow the sport; laudable goal, but they have the means to speak directly to fly fishermen and potential fly fishermen, and with a handful of notable exceptions, haven’t opted to do so – on the green or the recruitment front.
@Shannon: I know how you feel; fees in the freelance markets have taken a pounding – both from the economy and the flood of amateurs with “parttime” access to markets (due to the Internet). Pricing in any “luxury” market is pretty subjective, but companies traditionally focus more on “value” products during recessionary times, and I expect that could be true here.
@Greg: It could be Far Bank (parent company of Sage, Rio, Redington, etc) bought Redington for access to manufacturing, but I suspect a different motive – access to a broader “value” brand. They can sell the high-end stuff via Sage, and less-expensive gear via Redington – all without compromising Sage’s high-end, leading-edge message.
It’s hard to imagine Sage selling a mid-priced pair of breathable waders or wading boots, but the Redington brand serves nicely as a conduit for that kind of gear (and like you said, the offshore rods).
@Frog & Greg: eBay’s fast becoming the unofficial backchannel way to dispose of inventory that’s not turning over (are manufacturers looking the other way, or supporting it?), but there are a lot more channels available to etailers, and it’ll be interesting indeed to see how it plays out.
Tom Chandler(Quote)
@Greg: When will my new reel arrive up here?
Tom Chandler(Quote)
I’m counting Sage among the companies that have been slow to recognize the tectonic shift occurring in the marketing world, though you’ll soon see that one of the Sage family of companies is making some noise on the Internet.
Gerovital(Quote)
Sage might serve as an example of how *not* to deal with shifting times, but I’ve seen a couple news releases as of late which – via corporatespeak – suggest they’ve got a little learning yet to do.
We’ll see what happens in the coming months (I assume the IFTD show will serve as a launch for a whole raft of online marketing activities).
Tom Chandler(Quote)
So, was there any validity to the exclusive with Sage and Cabela’s? We are obviously headed for a double-dip, so what’s the fly fishing industry’s pulse now? It would be interesting to see a timeline of Sage missteps. The fact that all top shelf rod makers were going to have to compete on a lower level has been in the air for a long, long time.
shannon(Quote)
Are we at a dead end on these future predictions?
shannon(Quote)
I’m not sure exactly what you mean; the post at the start of this thread is over 1.5 years old, and plenty has happened since then, though in practical terms, most of the issues presented above still exist.
Since my focus is on the marketing end, I’d suggest that those who were slow to embrace only marketing/retailing are still slow to do so.
Tom Chandler(Quote)