We call our pricing model “wholesale-to-consumer” and it is a major difference between SHRED DOG™ and other premium, high-performance brands. But what does that mean?
Basically, every other outdoor gear brand that sells through retailers (whether large retailers such as REI® or small, independent shops), has two prices. The brand sells products to the retailer for what is called the “wholesale price.” The retailer then marks those products up to arrive at the “retail price” that all of us parents then pay for gear for our kids. And that retail markup is roughly 100%. So, the reason parents might pay $150 for a youth ski jacket is because the brand sold it to the retailer for about $75 and the retail markup increased the price for the parents to $150.
Long ago this made sense. Retail stores were the only available distribution for products and browsing stores was the only way parents discovered brands and products for their kids. But the Internet and ecommerce has changed all of that. Brands like SHRED DOG can sell online directly to consumers for a far better value. Because SHRED DOG does not sell through retailers, we simply charge you what we would otherwise charge a retailer… the wholesale price. Therefore we call our pricing Wholesale-to-Consumer.
Why does that matter? It means we can sell the equivalent of a $200 product for $100. And it also means a $100 SHRED DOG product compared with a $100 product from another brand will be vastly different. We can invest in better materials, more features, and ultimately higher quality for the same final price point. If we spend $50 to make a product, you can buy it for roughly $100. If one of our competitors spends the same $50 on quality of materials, features, construction, etc, the price to you would be $200 at your local retailer. And the most unfair part of all of this is when those other brands sell “direct-to-consumer” or “consumer direct” on their own website. Do they offer parents a better deal? No, that would alienate their customers (the retailers) so they still need to charge the same retail price! That’s far more profit for the brand but no savings to us parents.
Why does this matter? Frankly, kids need quality gear just like adults. Outdoor adventures are no fun if our kids get cold and wet. But at the same time, kids outgrow gear in 6-12 months. So buying inexpensive (poor quality) gear sacrifices too much on the outdoor experience but paying top dollar for high-performance gear simply costs too much compared to an adult purchase that may last 5-10 years.
At SHRED DOG, we believe there are other quality brands on the market and there are retailers that do a great job. It’s just the pricing model that we believe is unfair and is what we want to change. We want parents and kids to be able to get outside and stay outside with high-performance gear but pay a fair price.
Premium Gear. No Retail Markup. 100% the Performance, 50% the Price.
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