Scrapping the sponsorship plan

I think this is a tough situation all and all. Both for the vendors and for the BOD... It can be a lose lose situation if you look at it from a bit of a different perspective. Before the sponsorship plans exsisted, when a vendor had a customer come into their store and they refer that customer to the BRS, they stood the potential to lose business with all the frag swapping and tank breakdowns going on, but the pay off was usually worth it because now they have a happy customer who is still going to need additional items for their tank, and a happy BRS member because they were able to sell their items (this is how I got my 55g when I was directed toward RC and the BRS by my local vendor). Now with the sponsorship plan the way it exsists on RC when a vendor refers a customer to the BRS they risk losing business not to an individual, but to another local store which may be able to operate with a lower asking price on their goods, which now changes everything dramatically because they could potentially lose the customer completely, causing some vendors to rethink what kind of role they want to play in the BRS. The sponsorship plan on RC was much less of a "threat" because not too many local stores were sponsors and plus it was targeting a different area of people (I know I for one never looked at the sponsors forums on RC).

I think competitive business is great, but I think a vendor would have to be a fool to refer a customer to a site which contains the info for their direct competition. Some people might think, "well I'll become a sponsor, but I just won't refer new customers to the BRS", while this may be an alternative, I don't think that is what the sponsorship is about either. I don't want to come across as sounding as if I'm griping about people being able to price items cheaper, I'm just giving another perspective as to why some vendors might not be interested in the sponsorship program.

This is obviously going to be a personal decision for everyone. I respect the time and effort that the officers have put into making this happen, and I think they are doing a good job, especially since I can't really think of a solution to this problem other than going back to the way it was before we started our own forum. I'm sure things will iron out with time, and this is definately not a put out or shut up open and close case.
 
You know though Jeremy, I would really like your honest opinion on the sponsorship plan. Im being serious, I know we (you and I not BRS and you) have had our run-ins in the past but we all really want this thing to work and I for one would like to hear your opinion.
 
Tears for Tiers ???

I just wish we could all go back to getting kicked out of kelly's.


Unfortunately, MACNA is a very serious commitment that
will definitely make or break this club.


Let's let that seep in for awhile.


NOW, as for sponsors, let's withdraw comments and let our collective money do the talking for us.

Storeowners, I'm sure you keep track of the brs members coming in and buying stuff. BRS Members- please support our sponsors.

The BRS should not be a bunch of cheap whiners, they should be the ambassadors of the hobby that make educated decisions on livestock.

There is a greater good that lies far above money. It is benevolence.

e.g.1 If your tank is doing real well, donate something to a sponsor LFS for free, that'll give them a zero Cost of Goods sold at the start.

e.g.2 If you know a storeowner likes beer, bring him a case of beer when you say hi. This should be more fun than it appears to be for some of you.

I encourage everyone to do the right thing.

I think that we're all under a lot of stress, and we need to cowboy up.

I hope that we'll talk more in the coming weeks!!!
 
karl wagner said:
Unfortunately, MACNA is a very serious commitment that
will definitely make or break this club.

Let's let that seep in for awhile.

Word from the frontlines says MACNA will make this club . . . despite the fact that of the hundreds of registrants only a handful are BRS members. And BTW not to turn this to a MACNA thread but the Hyatt is sold out and the Embassy Suites is selling quickly. :D Your heart is in the right place Karl but I wanted people to know that MACNA is alot of work. I dont want them to be scared that MACNA will bankrupt the BRS. I dont know if anybody felt that way based on Karls statement but jut in case.
 
Hey Guys and Gals,

How about a different perspective on the issue. I own a LFS and give the BRS members a 10% discount and have run several group buys, and the only support given to my store is the sale items of the group buys items only. The group buy items are usually priced at cost or next to nothing for a profit margin. I have to do all the work, front the money, and on top of that deliver the items to the meeting.

I am not asking for you to buy all your items frorm us (a LFS) but rather when all things are equal, why not purchase your goods and live stock from your LFS.

I recently posted a number of BRS only specials, for example a 90gallon Oceanic Reef Ready complete system for $830. That is unheard of! In addition, we had a special on all types of Coralife light fixtures with lunar, well below Doc Fosters, even before you add shipping costs. Guess what? no one inquired or posted a message on the thread. What gives?

There are injustices on both sides. Take for example the most recent survey on LFS sponsored the the BRS, which rated Inland Reef as having the best livestock, even though they did not have fish for the better part of six to nine months before the survey. How does that happen? I have supported the BRS in more ways that you imagine. I can honestly say that our store is responsible for 20 to 30 new members since our opening. We have even hosted school visits to our store, not as a marketing ploy but rather a way to teach some school children the interest in marine life and the environment. We do this for free! We have also made donations to the several organizations promoting the hobby as a means for learning.

I have read the comments mentioned above and they seem very selfish and one way! I devote alot of time to my store and the hobby and I do not moan and complain when things do not go may way!

I was briefly asked to comment about the sponsorship program after it was written. Perhaps if the BRS saught more involvement as opposed to isolating the LFS, we could have partnered a plan amicable to all.

Our store is open to all different level of hobbyists and not just the BRS. We try and do the right thing for all. I appreciate the support I get but I am saddened by the comments.

Thank you for letting me voice my opinion.
 
John, I really appreciate your opinion, its nice to hear an actual owner's real opinion. Is there some way to make it better for you. The last thing that anyone wants is for you or any other store owner to lose money. Instead of offering or maybe on top of offer high ticket items at a discount is there anyway to offer any smaller ticket items (test kits, pumps, salt, etc) at a small discount, and still make some money. I for one will go to a store an end up leaving with one or more over what I came to get. There has to be something that can be done to make it a win win for both owners and members.
 
Inland Reef had great fish!!!


For me, the biggest draw for a store is the expertise of the storeowner. Next comes the quality of their stock then comes driving distance lastly followed by price of goods.

Pravda it is then. Can I get that with my coral bucks?
 
I was briefly asked to comment about the sponsorship program after it was written. Perhaps if the BRS saught more involvement as opposed to isolating the LFS, we could have partnered a plan amicable to all.
We did send out the plan to a number of stores in advance. We asked for comments. We got back nothing.
 
Here is my .02, opinion only, and hopefully not tooo inflammatory:

What is the value of a good relationship with a loyal customer base?


Basically, the group buy isn't as profitable as selling stuff at 200% cost. I agree.

But...

nobody can expect to sell 100 buckets of salt, or 25 PH monitors, or whatever the group buy is, either way. It isn't like a huge profit potential was lost (aka you could have done the same volume at higher prices). By hosting a group buy, a bunch of people show up. Sure, you make a smaller profit on the goods, but if 20 people now know where you are located, stop by to pick something up, and develop a relationship, can you put a value on that group buy?

While they are there, they see you've got good prices and they like you, after they pick up the few impulse buys (cha ching), maybe they take a card. Even if you don't make a single dime on the group buy (which would be poor planning), how much sales does the added visitor traffic bring? With the right attitude, store, and planning, you could be recieving families, friends, and extensive contacts from the internet of just one person who you sold a 50 dollar item to. Are GB's still not worthwhile?
 
The whole thing about money doens't make sense to me.
If you sell 10 x $200 worth of reactors, and say 10% profit, you make 200 bucks. Okay, that's not a huge profit. You'd probably make the same amount of money selling one really overpriced reactor. Sure it happens, but its this instant gratification thing(winning the lottery, it aint gonna happen too often). If I was a store owner, I'd rather have 10 people spending money in my store, than one. Make money on everything else they buy... Howabout a group buy where you get one big ticket item slightly above cost, and have to buy 3 other small items with your purchase... hehe. Be creative.
 
By hosting a group buy, a bunch of people show up. Sure, you make a smaller profit on the goods, but if 20 people now know where you are located, stop by to pick something up, and develop a relationship, can you put a value on that group buy?
It is worthwhile to note that one sponsor did a group buy at just about cost, but everybody asked a buddy to pick up their items and bring them to a meeting. Little foot traffic was realized for that group buy.
Another sponsor did a group buy, everyone visited the store to pick up, and that store did well on the deal.
I think part of a solution may lie in requiring our members to pick up their own order. That's a rule we have to make. The stores don't want to look like a bad guy in making that rule.
 
I have run a bunch of group buys over the last couple years. They are hard to manage from a logistical stand point and are time consuming.
If all you realized was a small profit for the group buy it would not be worth it.
If however you are looking for exposure to the market place and consider it a form of advertising then it is well worth it.

There are some pitfalls. With experience you can eliminate the pitfalls and not only get the exposure but make a decent buck while your at it.

Moe's comment that the BRS should set the rules ie. "members picking up their own order at the store". I think is not the way it should be. The store owner should set the rules for the group buy. If the LFS has done a proper job with the GB then they will look like a hero.

I have had some GB flops and I have hit a home run or two.
Its not easy being in business.

The BRS is a great place to build a customer base. I think the sponsorship plan should remain in effect, perhaps with some tweaking but a plan should be used.
 
Moe_K said:
It is worthwhile to note that one sponsor did a group buy at just about cost, but everybody asked a buddy to pick up their items and bring them to a meeting. Little foot traffic was realized for that group buy.
Another sponsor did a group buy, everyone visited the store to pick up, and that store did well on the deal.
I think part of a solution may lie in requiring our members to pick up their own order. That's a rule we have to make. The stores don't want to look like a bad guy in making that rule.
this would be a great addition to the group buy policy, because that way the stores at least the additional foot traffic. we as members should also make a point of buying something else to try and make the group buy worth the store's effort.
 
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Tstone said:
Moe's comment that the BRS should set the rules ie. "members picking up their own order at the store". I think is not the way it should be. The store owner should set the rules for the group buy.

Funny thing is we've discussed this and I thought that allowing the sponsor to require in store pickup or not at his/her discretion was going to be part off the program.

The concept of a "loss leader" is nothing new. Home Depot does it to me all the time. Hey look honey I got this pnuematic nailer for $150 off, Woodworkers Warehouse told me they cant even buy it for that price . . . I did spend $200 for the nails but I saved a ton on the gun :D (that is a 100% true story BTW, luckily my good friend Marvin saved the day and I was able to return the gun to HD, kept the nails though) Same thing happened when I went to pick up my 99cent hermits at Aqua Addicts. I spent about $10 on shrimp and crabs and $70 on a beautiful encrusting montipora. A friend of mine who was with me spent $15 on shrimp and crabs and got an Elegance to boot.
 
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