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From: Bob Austin (no email)
Date: Wed Dec 01 2004 - 21:20:51 EST
I have dealt with West Marine, since Randy Repass was selling rope out of his
garage in the 60's--and my Port Supply Account is one of the first. A number
of my friends also work at West Marine a few hours a week for the associate
prices (Which I believe are 10% over West's cost). There is a huge mark up in
the marine retail business. When I had OEM status, I was paying 40% of list,
with another 10% off for prepayment.
I would characterize West Marine as more a Wal-Mart, than a convience store.
A marine convience store is that one at the head of the gangway, which sells
bait, beer, a few fittings, a few maintance supplies some books and charts
and baseball caps.
Some West Marine employees are very knowledgeable--but not all. Many have
little boating experience. I have been in West Marine stores where they
didn't have a clue--and some where the associates were very well educated.
The perception is that now West Marine has grown, and gobbled up the
competition, that they are radically raising prices. I don't know if this is
true. There are certainly many more items purchased on the internet this year
than last and so it goes. We have heard a number of instances where local
stores which have survived are offering items for much less than West Marine.
In our area, the Boat U S store is only about 8 blocks from West--and remains
open--I don't know how long that will last. There are definitely more branded
West Marine products--and with the buying power, West can most likely put a
company out of business with a copy of their product made overseas.
Yes, the return policy is great--and many take advantage of it. I happen to
like to look at a product before I buy; so I often buy expensive electronics
at West Marine.
John Edmondson is retiring as CEO and received 1.2 million in compensation
this year--not too bad. I believe 43% of West Marine stock is held by
"insiders": 32% by Randy Repass. West Marine stock traded at a high of 33.67
and a low of 17.5 for 2004 and as noted has not paid a dividend. So the 24
current price is still down nearly 30% from the High of April 6.
I think that West Marine may be riding a slippery slope. I have noticed a
number of new marine stores springing up--perhaps because West's prices are
up?? It may just be the hurricanes, but in our area West sales are way down.
There are a lot or sources of boating education on the internet--and many of
these are related to specific products which boaters then buy from that
source.
Regards.
Bob Austin
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