Prices at MEC

[*Chris*]

Has anybody else noticed that prices on climbing gear at MEC have taken a sudden spike? WTF! The Canadian dollar hasn't moved much and is still quite high *assuming MEC probably buys most gear in Yankee $USD$*. I wonder what happened? I looked at the last few orders I made and compared to now:

Metolious master cams up to $62 from $49 - Up 27%
Sportiva Muira shoes up to $171 from $135 - Up 27%
#2 BD Camalot up to $69 from $57 - Up 21%

That would seriously hurt if you just newly purchased a rack.

[chossmonkey]

I hadn't really noticed since we haven't been buying much gear lately.

I was just taking a look and L.A. pitons are $21 a piece now! I don't think it was that long ago they were around $10.

[Leehammer]

On last check, The Radical Edge had lower prices on most shoes, I think the Miura's were around $150.

[Rosie]

Good thing I bought my rack in April then!

I just checked, I paid $60 for my BD #2 in April, and now they're $69. Yikes is right!!

[lmac]

I'm thinking the same thing as you Rosie. I bought my rack in April and then picked it up in Alberta to avoid the extra taxes in NB or BC. It looks like it would be a lot more expensive now.

Although, everything is all scratched up now.

[bns]

yes all the climbing shoes have gone up in price at MEC

[Adam]

Although, everything is all scratched up now.

you say it like it is a bad thing.

[Matt Peck]

Cams at EMS are 20% off. Lots o-other stuff too.

[mick]

Where is this EMS you speak of?
I am in the market for some cams

[Matt Peck]

Eastern Mountain Sports. Big chain in the US, similar to REI. Closest store is the monster new one in North Conway, NH, but they've got a pretty good website with online service. Just google em.

[PeterA]

I believe there is also an EMS in portland, Maine. A bit closer than North Conway maybe?

-PJ

[gwa]

I contacted MEC about the price increase. This was their response.

-----------------------------
Thank you for writing to express your dismay with the recent price increases on our climbing gear. Please allow me to explain the 15% increases that you have noted.

MEC purchases most of the gear we sell in US dollars. Since we earn Canadian dollars when we sell the gear, we must purchase US currency used to pay our suppliers on the exchange markets. As you probably know the exchange rate between the US and Canadian dollars varies over time. Over the past 18 months we have experienced extreme exchange rate volatility where the Canadian dollar has traded at between $.70 and $1.10 US.

MEC purchases forward for 80% of our US dollars needs. Forward purchasing means that we agree to an exchange rate well in advance of the date that the currency will be required. For example, the exchange rate for the US currency we will use to pay for fall ’09 inventory shipments arriving now was determined 6-9 months ago. We purchase forward (also called hedging) for purposes of budgeting and financial planning. Locking in at a set exchange rate allows us to plan our pricing and expenses so that we meet our financial targets, so as to maintain our financial health.

In regards to your question about climbing gear, our currency exchange rate for the fall season is around C$1.20 to the US$1. That is, a US dollar costs us about $1.20 Canadian. This rate is a blend of currency purchases negotiated in late 2008 and early 2009, when the Canadian dollar was valued at around 80 cents to the US dollar. In contrast, our exchange for US currency used to purchase gear sold last spring was very close to C$1 to US$1. This currency was purchased in the spring/summer of 2008, when the Canadian dollar was trading at par, or higher, with the US dollar.

Since the US currency used to purchase inventory this fall cost MEC almost 20% more than the currency used to purchase our spring inventory, our inventory cost has risen by 15-20%. Most of this increase must be passed on to our members in the form of higher prices, otherwise we will not earn sufficient gross margin dollars to pay our operating expenses and meet our (modest) surplus targets. Hence the higher prices for the climbing gear that you wish to purchase.

MEC is committed to providing our members with the best quality gear at the lowest reasonable price. The unprecedented price increases we have implemented this season are the result of unprecedented currency fluctuations over the past 18 months. We regret having to increases prices for you and our other members, but we must do so in order to maintain our financial health.

Even with this season’s price increases I think you will find that our climbing gear prices are as good as or better than at other outdoor retailers. If the cams or ice tools that you wish to purchase are priced lower at another store within any of the cities that MEC serves, then we will gladly match that lower price.

I hope that I have answered your question. Please call me on the toll free number below if you would like to discuss this matter with me.
Regards,
Harry
Toll Free within Canada and USA
t. 800.663.2667

[*Chris*]

That's quite an explanation. Most other outfits would have given you a 10 word answer. Turns out my original assessment of the exchange rate correlation was the correct factor... but not the correct direction. Thanks for forwarding.

[Fred]

Even with this season’s price increases I think you will find that our climbing gear prices are as good as or better than at other outdoor retailers. If the cams or ice tools that you wish to purchase are priced lower at another store within any of the cities that MEC serves, then we will gladly match that lower price.

Quite the retailer response. Doesn't sound much like a not for profit co-op attitude.

[chossmonkey]

So this totally explains why the nomics jumped $20 a piece in the middle of last winter.

[Stacey]

I would think also - that the cost of customs/duties etc. is taken into account for price increases...though I would think the dollar has been more stable and close to par in the last 12 months than low at 70 cents....

Unfortunately some of their prices are not that competitive...however their comment on 'matching' a competitor price is a new revelation...

Stacey

[martha]

Any company, not just MEC 'hedges' their pricing and exchange rate 6-12 months in advance. I worked in Sporting goods wholesale for a long time and this is common practice.

Athough duties and taxes probably haven't changed a lot... most definitely shipping costs are higher every year.

MEC does get 'modest' profits.. and you'll see that in their core values, they put back those $$ into the outdoor industry every year in forms of grants, sponsorships and other methods.

I'm cool with it. MEC Is a great company.

[Stacey]

MEC does get 'modest' profits.. and you'll see that in their core values, they put back those $$ into the outdoor industry every year in forms of grants, sponsorships and other methods.

I'm cool with it. MEC Is a great company.

me too Cara - - all companies (co-op, or not-for profit) have to have a 'reserve' (those 'modest profits' for example) for leaner years...otherwise they will fold. Downturns in the economy can really hurt companies who don't 'save' for a rainy day

MEC is the bomb - - it's great when someone notices our gear from there...and they praise it - - wishing they had MEC and not just REI!

Stace

[Shawn B]

If you are in North Conway, IME will usually match any sale at EMS. And you are supporting a small local shop vs a large retail chain. No tax in NH makes up for any exchange rate right now too.

[sand]

Prices were up in La Cordée in Québec as well (was up there about a week ago)
I guess it's time to plan a trip to North Conway!

[mick]

Just noticed that cam prices have come down at MEC in time for the new year. Looks like they agreed to a more reasonable exchange rate for 2010.

[Ammex]

Shoe prices are all down a few bucks as well.