The Midwest Ski Areas Association (MSAA), comprised of some 90 ski and snowboard areas across 11 states and southern Ontario, began looking at forming a buying group for rental equipment three years ago. After voting in the plan last year, many Midwest ski areas spent this past season testing new rental equipment, communicating with suppliers and getting better deals than ever before.
The MSAA knew a buying group would be beneficial, if not necessary, for many reasons. Chief among them was that rental gear kept breaking down. Use of rentals is different on Midwest slopes than it is in the Rockies. The masses of school kids bused to ski areas during school hours or for after-school learn-to programs can be hard on equipment, even before it gets to the slopes. In addition, Midwest rentals frequently go out two or three times a day. While tough equipment usually holds up, the less-than-tough does not.
To make matters worse, MSAA members were having difficulty communicating their rental needs to suppliers who would frequently offer retail models as rentals and, in many cases, the equipment simply wasn’t tough enough. This resulted in warranty issues, disputed invoices for rental purchases, remounting of warranty replacements and extra headaches that neither MSAA members or suppliers needed.
When Midwest ski areas asked in the past for bulletproof rental skis or snowboards they were usually told by suppliers that one ski area couldn’t order enough to make production worthwhile. This was also true of boots and other gear. With reasonably high use in the Midwest, and when the integral binding disappeared, many members were left without a solution to continue using it. After much research, MSAA concluded that a solution to gear problems would only be found by harnessing the buying power of all its members.
Under the direction of Chris Stoddard, MSAA president, and Phil Peterson, MSAA program director, the buying group brought in Tim Kohl, formerly with Pre Skis and Research Dynamics, as the supplier contact coordinator.
“We quickly identified our member’s rental equipment open-to-buy for this season,” says Stoddard. “These substantial numbers (they will be even larger for next season) helped us show suppliers why they needed to work with us. Tim Kohl immediately began talking to targeted suppliers.”
Interestingly, a low price was not at the head of MSAA’s list. Properly designed, tough equipment was. Many members were still using skis, often more than five years old, that did not have the problems plaguing some of the new cap-construction models. Midwest ski areas wanted similar (or improved) old-construction skis—which they knew would hold up to rental use—combined with the new shaped-ski sidecuts.
Another goal was supplier participation in the new MSAA test program. Starting this past season, several suppliers placed their rental equipment at select MSAA ski areas for testing on a daily basis. The feedback gave the suppliers time to redesign, fix or improve rental products (if needed) before scheduled spring purchases. Both suppliers and buyers said the program works and are expanding test protocols for next season. The program will begin in December with results provided to suppliers and members in January.
Another goal of the group was to orchestrate the process of placing orders. If suppliers were asked to offer proper gear, timely delivery, adequate warranty and better prices, MSAA members also had to offer benefits to the suppliers. For this season, MSAA asked all members to place their rental orders by April 16, 2001. Next season, the goal will be to get orders processed even earlier to give the suppliers more time to start production and delivery. As the buying-group program evolves, greater order consolidation, larger purchases and earlier order dates are anticipated.
To date, at least five suppliers have committed to putting newly-designed Midwest rental skis on display at the MSAA Summer Trade Show at Spirit Mountain, Minn., August 5 through 8, 2001. Every supplier we approached but one signed on—and we are still asking that one to participate in the program.
Response to supplier offers from MSAA members has been positive. “I sent my order in to MSAA in March,” says Don McKay, of Tyrol Basin in Wisconsin. “The test reports on snowboards helped and the supplier offers were the best in years. MSAA should have done this years ago.” While a few members have elected to postpone rental purchases until they see (and test) the newly-designed skis promised by suppliers, many moved on their orders this season, especially with suppliers that have adequate gear backed by solid warranties. The Midwest members anticipate spending several million dollars on rental equipment this buying season.
A natural evolution of this initiative may be a transition to fewer, strong suppliers of rental equipment to the Midwest, especially in the case of those suppliers that get an early start working with the group.
“The screening process of the test program,” says Chris Stoddard, “as well as warranty, proper gear and supplier cooperation with the needs of our 90 members, may well scare a few suppliers away. On the other hand, by eliminating most of the current problems negatively affecting our rental industry, those suppliers working with us should be pleased with the results.”
To ensure the buying group concept continues and flourishes for both sides, rental suppliers will show their products and philosophy to about 300 Midwest ski area personnel this summer at the MSAA meeting and the organization’s Midwest Fresh Tracks magazine will publicize supplier product photos and news releases, as well as articles on the use of high-performance equipment rentals at Midwest ski areas on a regular basis. The theory being, the more retail equipment the Midwest can help the suppliers move through their retail outlets, the more they will be able to help the Midwest grow.
MSAA has worked long and hard at increasing growth in the Midwest. As suppliers join the cause with better equipment, pricing and programs, and the 90 ski areas help suppliers market their retail products more people will benefit from proper equipment and the industry will grow stronger.
