Dear Partners and Friends – News From CadoMotus:
 
Like you, we’re excited to be falling forward into another summer with thousands of our fellow skaters! It’s the season of speed and intelligent motion!
 
Last season we shared our retail vision with you. We recommitted ourselves to helping specialty retailers with our pricing policy. As you know, we stand for quality, functionality and great service, and in that light, we stand firmly behind you, our retail partners, at the store level. We all know that yes, internet sales are strong and continue to grow, but the internet as a sales channel leaves much to be desired when it comes to excellence in serving the needs of the skating community. The internet simply can’t compete with a physical store when it comes to customer care. In the value chain, there is no greater way to build customer loyalty and provide service excellence than what can be achieved with the human touch that retail provides. We support and rely on the value you deliver. To that end, we’re not interested in price battles across sales channels. Therefore, we’re sharpening our policy even more this season to bring more balance between online and offline sales…
 
Expert Dealers – Support That Goes Beyond Discounts
New in 2016, we’re strengthening the links in the supply chain by offering Expert Dealer status to all our retail partners. As an Expert Dealer, you can take advantage of volume discounts, even on our Premium line. You’ll be able to supply your customers with premium MPC wheels with the B2B box, and at very attractive price. Price advantages aside, we also provide Expert Dealers with products on an exclusive basis, gear like our high-end iD boots – in ten different colors! – Mariani Dogma, and future limited edition products that your skaters will want and won’t be able to easily get elsewhere. Preferred pricing and exclusivity make the Expert Dealer program an easy win!
 
How Do I Become An Expert Dealer or Distributor?
It’s simple. In 2016, all of our dealers at R8 and higher are automatically added to this group. As we move into the 2017 season, we’ll be rolling out more exclusive terms to Expert Dealers that have developed more of a partnership with CadoMotus. Expert Dealers that are offering a depth of selection of CadoMotus products in their stores, who have strong annual sales volume, who are selling CadoMotus gear exclusively, who have made significant stock investments with us. These Expert Dealers are the cream of the crop, bringing together their expertise, service level and marketing & promotion efforts to the top. We’re recognizing this group as we should. And what’s more – anyone can strive to be among the elites, it’s a matter of how hard and smart you want to work for it. At CadoMotus, we recognize commitment and excellence!
 
What Does It Really Mean?
As an Expert Dealer, you’re the very essence of customer service excellence. CadoMotus recognizes that you’re a person who knows how to combine your enthusiasm for our sport, specialized knowledge of gear, and passion for the customer. Your customer always comes first, and you’re the first to give them the best advice. They rely on you to be a part of the formula that helps them skating faster, and we know you need partners in the chain working with the same dedication and mind for speed in the end-to-end process of getting and keeping skaters equipped.
 
Our Commitment to Expert Dealers – Partners In Inventory Management
We appreciate that specialty retailers need four key components to ensure growth and long-term vitality: shop, knowledge, service, and stock. The stock component is key to your retail success, and we appreciate the role we play here. That’s why, through this season and next, we will continue to implement our policies to better match demand curves to ensure Just-In-Time inventory management, and to keep cash flows smooth and liquid for everyone. As an Expert Dealer, we’re going to be working off your own sales forecasts to project our inventory needs so that we’ve got the stock on-hand to get you what you need, fast.
 
Ordering Efficiency – Pre-Orders & Back Orders
We have installed an ordering module in our online B2B environment. If our products are not in stock, a pre-order button appears. When you click it, you’ll be given the delivery date to be expected. Not only will your order be placed immediately, but you’ll be assured that you’ll be served in priority order - first in, first out - once the items are back in stock. In addition, this system helps us better assess market demand for certain products. You know how hard this can be in the skating world! The more we’re integrating this tool with partners like you, the better we get at meeting market expectations, fulfilling orders in a timely manner, and delivering consistent service and inventory to you.
 
Margin Improvements
Last year, we introduced better category management practices with the roll-out of our Economy and Premium categories. Economy products are of professional quality for a fair and reasonable price, with good margins for distributors and dealers, and they are always in stock. The Premium line includes our exclusive brands, for those that desire only the very best, including Marchese and Mariani Dogma shoes, MPC Wheels, and Bones Bearings. These aren’t always in stock and are provided at narrower margins. Expert Dealers are the primary reason we carry these distinctive products, because there’s a price-point for everyone, and you want to be sure to serve everyone, but particularly the customers that prefer this gear, as they tend to be the most influential skaters in their local group or on their teams. These are the skaters who will refer business to you on an ongoing basis.
Our Economy line has already improved margins for retailers and demand is strong for the products. In 2016 we’ll not only continue with it, but add to it. We’ve added our own skate wheels - the Xenon - to this line, as well as the new CadoMotus-Fila clothing line, which previously was exclusively a Premium offering. We’ve adjusted the pricing on the CadoMotus-Fila gear to protect the margins, and we are convinced that the high-fashion appeal and premium quality will result in this clothing being sought by most of the skaters you serve. (And not-for-nothing, it won’t hurt that your customers will see some of the best skaters in Europe wearing this gear on the podium this year when they scroll social media!)
 
Margin Tiers
You already know our way of calculating purchase prices. The discounts grow with your investment in our products, resulting in an account between R0 and D4. In 2016 we’re offering volume discounts on products such as backpacks and skate helmets. Accounts between R0 and R6 are extended decent discounts on lower volume, and of course accounts R8 and higher fare better with higher discount at higher volumes. For backpacks the breaks come at 5 and 10 pieces. For the skate helmets the breaks are 16, 32, and 64 pieces.
 
Finally - Apologies
We want to apologize for the erroneous invoices that were submitted last year, which included the dealer rebate that was not calculated properly. We work with Magento, a system that offers unprecedented flexibility, like the ordering module we discussed earlier. Please understand, we’re skaters, not IT specialists! Magento is a robust solution, and as such it’s tricky to implement correctly sometimes. We’re very focused on making this the best experience for all of us, and we’re working hard to address issues as they arise, implement new features, and strive for a reliable automated solution. There are bound to be hiccups on the path to greater efficiency. Thank you for your patience as we work to push the needle forward for everyone.
 
Thank you too for being a part of this sport, and for your commitment to service excellence, integrity, team work, continuous improvement, advancement, fitness, and fun. Here’s to our continued growth together!