Burlington Free Press: Local recreational retailers gearing up

BIKES, KAYAKS, CANOES

Last week, a woman walked into Skirack in Burlington looking for a bike. She walked out of the store with a brand new Santa Cruz Nomad, a high-end mountain bike for which she paid $3,000.

It seems unfathomable in a time of economic doom and gloom that anyone would have the extra money to buy what is essentially a very expensive toy. But for this customer, the bike was a concession. She had planned on spending that money on a week and a half yoga retreat in Hawaii, but instead thought her money would be better spent on a bike that she could use for years.
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For outdoor retailers that sell big ticket items like canoes, kayaks and bikes, this is not an uncommon tale. Though it seems that retailers that sell nonessential recreation equipment would be suffering in this bleak economy, the opposite is true. Local bike shops are posting sales numbers better than last year’s and paddlesports stores, which haven’t hit their peak season, are also doing well.

At Skirack, March and April have been better for bike sales than last year at this time, said Adam St. Germain, the store’s general manager. This could be attributed to the relatively decent weather these past couple months, St. Germain said. The positive sales numbers also might reflect people’s desire to escape all the bad economic news.

“People want to have fun. They’re tired of the doom and gloom,” St. Germain said.

On a recent weekday afternoon, nearly a dozen people were on the bike floor at Skirack, checking out bikes. Just last weekend, Skirack sold several high-end mountain bikes, giving St. Germain reason for optimism.

Andrew Brewer, owner of Onion River Sports in Montpelier, is also optimistic. Sales at his shop are up a bit from last year and he’s expecting to post good numbers for the bike season.

From years of experience in the outdoor industry, Brewer understands that his business will be able to weather a recession just fine. Because the price point of what he’s selling is cheap relative to other forms of recreation, he’s confident bike sales will be strong.
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“People don’t buy a boat or a new car in times like this,” Brewer said. “But buying a bike is very attainable.”

Sales at Earl’s Cyclery & Fitness are on par with last year in terms of dollars spent. But people are buying more expensive bikes this year, sales manager Tyler Jeppeson said. He guesses that people are willing to spend more on quality because they’re not spending money on expensive vacations and large purchases.

“People are being more careful with their money, but they’re not afraid to spend more,” Jeppeson said. “They’re looking to get better quality if they’re going to spend more money.”

At Earl’s, where they just completed a sizeable expansion, children’s bikes are selling very well this season. Families that would normally buy their kids a cheap bike at a large retailer that would have to be replaced next year, are spending more money on a name-brand bike.
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While boating season hasn’t begun in earnest yet, local kayak and canoe retailers are seeing steady sales of equipment. At Canoe Imports in South Burlington, sales are about level with last year’s, owner Darrin Kimbler said.

Kimbler has been in the industry through a couple of recessions and the trend is always the same. Sales do well when the economy is struggling.

“We find it to be almost countercyclical. People see it as a way to vacation closer to home,” Kimbler said.

While kayaks and canoes, like bicycles, can have eye-popping price tags, there are plenty of entry level boats that can provide years of enjoyment for cheap, Kimbler said. Canoe Imports’ best selling watercraft are the 14-foot touring kayaks that cost $1,000 to $1,500. They’re very versatile and if well taken care of, they can last a lifetime, Kimbler said.

Human-powered boating is very accessible to people because once you have the initial gear, it’s essentially free. There’s no real maintenance costs associated with canoeing and kayaking. Plus, so many people can get in a boat and paddle around without needing to be athletic or have any special skills.
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One of the problems with kayaks and canoes lasting a lifetime is that customers often only come into Canoe Imports once, Kimbler said. A new trade-in program at the store allows people who bought their canoes or kayaks at the South Burlington store to trade in their boats for 80 percent of the original cost of the boat. If they bought a canoe for $1,000, they will receive $800 toward the purchase of a nicer boat.

At Umiak Outdoor Outfitters in Stowe, interest in canoes and kayaks is up from last year. Because of the weather, people have been shopping for boats earlier, owner Steve Brownlee said. The heart of the kayak and canoe season doesn’t begin until June.
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The challenging economy hasn’t been a negative for Brownlee. If anything, it’s been a good thing.

“People are frustrated with the economy. They’re looking for things to do where they can invest their money and get a good return,” Brownlee said.

Brownlee has seen strong sales this year for tandem kayaks, which are perfect for families. People are looking to do more activities closer to home, so family kayaking seems to be one of the more cost effective forms of recreation.

While other industries might be nervous about what the future brings, the region’s bike, canoe and kayak retailers are watching their business grow. But they’re not celebrating quite yet.

“We’re always optimistic,” Brewer said, “but we’re proceeding cautiously.”
Bikes, kayaks, canoes: Where the deals are

In this unstable economy, it’s best to pinch your pennies in the event of a total financial collapse. But that doesn’t mean having to deprive yourself of fun.

If you want a big-ticket piece of recreational equipment, there’s no better time to shop than now, retailers say. While many buyers prefer new equipment, there are plenty of bargains to be found at various gear swaps.

Skirack, Earl’s Cyclery and Fitness, Alpine Shop and North Star Sports all have swaps where you can find great deals on gently used bikes. But you have to get there early for the best bargains. People start lining up at the Earl’s swap hours before it opens.
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Used bikes aren’t the only deals to be had with regard to summer toys. If you know where to look, you can find used, demo or sample canoes and kayaks for a great price.

Outdoor Gear Exchange sells a number of consigned boats, along with sample boats that rarely are more than $1,000. Umiak Outdoor Outfitters and Canoe Imports also sell some used boats.

If you’re not interested in investing in a big piece of equipment like a bike or a boat, there are plenty of places in the area that rent them. Local Motion on Burlington’s waterfront offers rental bikes, as do many of the area bike shops. You can rent kayaks at the Community Sailing Center in Burlington and at most of the canoe and kayak retailers in the area.
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Bike swaps

North Star Sports: 10 a.m., Saturday.
Earl’s Cyclery and Fitness: 9 a.m., May 2 and noon, May 3.
Skirack: 9 a.m., May 2.
Alpine Shop: 9 a.m., May 2 and 11 a.m., May 3.
Onion River Sports: 9:30 a.m., May 2.

BOATS

SHELBURNE — After a slow winter, boats are selling again at the Small Boat Exchange in Shelburne.

“When Lehman Brothers closed their doors, almost everyone’s phones stopped ringing. … People are back in the game and they are buying again,” said John Freeman, the Small Boat Exchange’s owner.
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Lehman Brothers, an investment bank that predates the Civil War, collapsed in September, helping send Wall Street and the financial markets into turmoil.

“Sales are surprisingly strong,” Freeman said. The Small Boat Exchange sells a range of new and used boats, both power and sail.

“Spring has been excellent. It’s across the board. New stuff. Used stuff. It’s almost like there wasn’t a recession,” said Freeman, as he repaired a 15-foot day sailer, calling the return of boat buyers a “nice change.”
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The country has been in a recession since December 2007, millions of jobs have been shed, consumer confidence has plummeted and unemployment rates have continued to climb. Vermont’s jobless rate for March is 7.2 percent; the U.S. unemployment rate is 8.5 percent.

Shelly Eriksen, co-owner of Tom’s Marine Service, in West Ferrisburgh was expecting a sour sales season in the wake of last fall’s financial collapse, but the buyers have continued to show up — with a smaller budget.

“I’m running out of used boats,” she said. “Sales have been surprisingly good this year, considering the way the economy has been,” she said. New boat sales are down “a little bit” and used boat sales are up.

Buyers are often focusing their boating desires on smaller vessels, Eriksen said. Instead of cabin cruisers, which are 25 to 30 feet long and cost $25,000 to $30,000, people are leaning toward bow-riders. The open cabin boats are 20 to 22 feet long and can be purchased for $5,000 to $15,000. Those prices are for used boats.

The business, which only sells power boats, also has about 400 customers for servicing; that side of the business remains pretty constant, Eriksen said.

The upper end of the market, however, isn’t moving so quickly.

Jeff Hill of Bruce Hill Yacht Sales Inc. in Shelburne said the wobbly economy is keeping people from upgrading to larger boats, for now.

“There is a lot of perceptions out there about how the economy is doing, weighing into their decisions into whether they should purchase a boat,” Hill said. “It’s a slower time … We are looking for it to pick up.”
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Located on the tip of Shelburne Point, Bruce Hill Yacht Sales offers a combination of new and used boats, many of which are stored in the adjacent Shelburne Shipyard.

“The fact that people’s investments are going down has just given people pause in spending on something like this,” he said, walking through the rows of sloops stored in the boatyard behind his office. The Dow Jones industrial average has fallen 37 percent from 12,849 one year ago.
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One of the sailboats Hill has for sale is a new 32-foot C&C sloop for about $150,000. Not all the boats are in that price range, though. A few rows further west in the boatyard, Hill pointed out a used 31-foot Pearson sloop for $19,000.

The most consistent sales now are for used sailboats, he said. “When you think about owning a sailboat, it’s very economical,” he said, noting little needs to be spent on fuel.

The prices of used boats are holding pretty well, he said. “I’m not seeing massive slashing of prices.”
How’s the ’sailing’?

• SMALL BOAT EXCHANGE, Shelburne: Sales are “surprisingly strong” for new and used boats.

• TOM’S MARINE SERVICE, West Ferrisburgh: Solid sales on used boats. Sales of new power boats are down slightly. Customers buying smaller vessels.

• BRUCE HILL YACHT SALES INC., Shelburne: “It’s a slower time. … We are looking for it to pick up.” Sales are steadiest in used sail boats.

Free Press staff writers Lauren Ober, Joel Banner Baird and Dan McLean wrote this story.