David Morgan's "Explorer Hat" by Akubra

[jimmy the lid]

:I've noticed that when I look for other U.S. stores selling Akubra's, they have some very little to offer...maybe 3 or 4 hats at most. I've also heard that there is only one direct importer and they're the reason Akubra's aren't in more stores here....

Noggintops actually carries a fair number of Akubras, and they are good folks to do business with.

Cheers,
JtL

 

[Colby Jack]

Jimmy...I guess what I meant about 3 or 4 hats was...if you're going to carry a brand, carry all the styles. Noggintops has a fair amount...but I guess Hats Direct just stands out so well...
CJ

 

[Bebop]

A couple of years ago I was at Morgans and was told that Hatsdirect made it very difficult to compete because of pricing and exclusivity to certain styles. They said they were going to work on it and it looks like someone did their job. I wonder if this is how the Sydney hat at D.M. is a carbon copy of the Fedora at Hatsdirect?

I know Hatsdirect is a great merchant and I have been satisfied by them several times but it does sound nice to be able to drive (at least in my case) to David Morgan and try on this "Indy Hat" without thinking of mailing anything anywhere if it does not fit or you just don't like it. They have satisfied me several times also.

 

[fatwoul]

...I know Hatsdirect is a great merchant and I have been satisfied by them several times but it does sound nice to be able to drive (at least in my case) to David Morgan and try on this "Indy Hat" without thinking of mailing anything anywhere if it does not fit or you just don't like it. They have satisfied me several times also.

Absolutely, and I am all in favour of competition in the market place. Having said that, exclusivity to certain styles and an ability to price lower is precisely that; HatsDirect using tools in its arsenal to stay in the competition. Don't forget, that where DM may have passing trade, and is based in a country with a quarter of a billion people in it, HatsDirect is situated in a country with a population of less than a tenth of the US, and I am sure relies a lot more heavily in overseas sales than David Morgan does. So if someone yells foul for HatsDirect's pricing and exclusivity strategies, I would also call foul for David Morgan being based in a country with a much bigger population. lol

Anyway, as for me, I just feel that the competition for my business has been won by HatsDirect. So as long as that arrangement ain't broke, I see no need to fix it.

 

[besdor]

As a fellow vendor, I would recommend Hats Direct . Their pricing is great and the selection of Akubras are better than anyone alse. I even bought one for myself. Most of the merchants here wont sell Akubras because of David Morgans practice of selling direct to the public. If you are a wholesaler then sell to the stores , not to the public.




Steven

 

[Aerol]

wholesale/retail

There are examples of instances where companies are both wholesalers and retailers. Nike, for example, sells directly to consumers through their Nike Town stores, Ralph Lauren/Polo has stand-alone stores, and many high-end fashion houses (Gucci, Ferragamo, etc.) have boutiques as well as wholesale arms.

As long as DM's wholesale side sells to retailers at a price that enables them to make a fair markup, I have no problem with DM having a dual role. Besdor, I urge you not "cut your nose to spite your face," and re-evaluate your position.

 

[besdor]

Aerol , you are right. There are many examples of companies that sell both to retailers and the public. But these are much larger industries. The hat industry is 1 % of the sneaker business. If the hat manufacturers and wholesaler and retailers dont work together , this business wont survive. There is a lot of cut throating going on now that is hurting some of the manufacturers in the hat business . Everyone is trying to save a dollar and people are trying to cut others out of the business. It used to be a much easier business to be in .



Steven

 

[Mike in Seattle]

And here I sit a short jaunt from David Morgan, with my eyes bugged out at this point from seeing this post. I had the day free tomorrow, so I was going to take the lawn mower in for resharpening & annual tune-up, and then I was going to run downtown (Seattle) and check out a few things at Bernie Utz instead of running up to Woodinville for lunch with a friend. And Woodinville is next door to Morgan's headquarters in Bothell and REALLY, Morgan's just over the Woodinville-Bothell border & not close to Bothell proper.And this hat wasn't on the site earlier in the week...when I was thinking maybe I should order a Federation from our Aussie friends. I've been thinking since it's been a pretty lousy "summer" in Seattle (gray and cool and drizzly at times - the worst summer in the 13 years a I've been here), I could wait until NEXT year for the Panama...man...you Loungers make it hard on a guy at times! It's supposed to be drizzly tomorrow night (and for the next five days) when I'm supposed to tape a show in an outdoor theater and I suppose I really DO need a new hat if only to keep my head dry, right? I've been so frugal the last couple months...I owe myself a little splurge, right? And if I were to get one, it would be in the service of Fedora Lounge and only so I could report on the actual hat and post pictures! That makes it OK, doesn't it? If only it were light tan with a copper ribbon... One Lounger knows what I mean!

 

[Colby Jack]

Go for it Mike

I say go for it Mike...Get the Explorer and ive us all a full report on it. Or at least go to DM's and take a good look at it and then let us all know what ya think...
CJ

 

[jimmy the lid]

Most of the merchants here wont sell Akubras because of David Morgans practice of selling direct to the public. If you are a wholesaler then sell to the stores , not to the public.

I don't completely understand this. Morgan, I assume, is doing what he is permitted to do under the terms of his distribution agreement with Akubra. Isn't your beef really with Akubra?

Cheers,
JtL

 

[besdor]

Not at all. I have spoken to the owner of Akubra many times. The problem is that DM can sell the hats here for a lower price than regular retailer can because they pay less than we do. If a vendor were to buy hats from DM, then they have to pay a wholesale price that is higher because of DM's markup. Stetson does not sell direct nor does Bailey or Biltmore. They sell either direct to the vendors or to a distributor.



Steven

 

[jimmy the lid]

The problem is that DM can sell the hats here for a lower price than regular retailer can because they pay less than we do. If a vendor were to buy hats from DM, then they have to pay a wholesale price that is higher because of DM's markup.

Exactly. So, isn't the real problem that you would like Akubra to sell direct to vendors generally, thereby putting them on a level playing field, rather than channeling their hats through some kind of master distribution arrangement that allows the master distributor to compete on more favorable terms?

Just to be clear here, Besdor -- my intent in following up on this is not to be argumentative in the least. This is something I have wondered about before with regard to Akubra's U.S. distribution. I have always found it curious that the sources of Akubras in the U.S. seem to be rather minimal.

Cheers,
JtL

 

[Bebop]

And here I sit a short jaunt from David Morgan, with my eyes bugged out at this point from seeing this post. I had the day free tomorrow, so I was going to take the lawn mower in for resharpening & annual tune-up, and then I was going to run downtown (Seattle) and check out a few things at Bernie Utz instead of running up to Woodinville for lunch with a friend. And Woodinville is next door to Morgan's headquarters in Bothell and REALLY, Morgan's just over the Woodinville-Bothell border & not close to Bothell proper.And this hat wasn't on the site earlier in the week...when I was thinking maybe I should order a Federation from our Aussie friends. I've been thinking since it's been a pretty lousy "summer" in Seattle (gray and cool and drizzly at times - the worst summer in the 13 years a I've been here), I could wait until NEXT year for the Panama...man...you Loungers make it hard on a guy at times! It's supposed to be drizzly tomorrow night (and for the next five days) when I'm supposed to tape a show in an outdoor theater and I suppose I really DO need a new hat if only to keep my head dry, right? I've been so frugal the last couple months...I owe myself a little splurge, right? And if I were to get one, it would be in the service of Fedora Lounge and only so I could report on the actual hat and post pictures! That makes it OK, doesn't it? If only it were light tan with a copper ribbon... One Lounger knows what I mean!

You should go, if for no other reason than to report to us on this Explorer.

 

[besdor]

Now you know why there aren't a lot of stores selling
Akubras here . For years there were two distributors, Outback Trading and David Morgan. When Outback gave up the distributing many retailers dropped the line. It is also expensive to ship large orders across the country. DM is in Washington and we are East Coast. All these things add to the cost.


Steven

 

[Aaron Hats]

If Akubra would sell direct to it's retailers, or at least level the playing field with the distributors, I think you'd see US sales of Akubra go through the roof. That's not likely to happen though.

Aaron

 

[Art Fawcett]

Not being a retailer it's easy for me to sit back and take an "outsiders" view of this and I can truly see both sides of the issue. First, if I were a retailer and wanted to carry the product line and be able to make a profit, the DM business model isn't too apppealing as the public can but at the same price as the retailers. But, the other side is that I can appreciate the shrewd business move to lock up Akubra distribution in the US. Who wouldn't want that as a business? How they model that goldmine is up to them as part of the rewards for that move.

 

[Aaron Hats]

Art, You're right. I'm sure every retailer would love a deal like that. It might be good for David Morgan but it's not good for Akubra. The growth of their brand is essentially limited. With the new US Supreme Court ruling that allows manufacturers to set minimum selling price Akubra could grow their brand in the US without having to worry about a retailer cheapening their brand.

Aaron

 

[Colby Jack]

But doesn't that argument lead to the "if I buy from overseas...I'm not supporting a U.S. dealer". Now I'd rather buy here in the states, just for convenience...but if I can save money by buying from the other side of the world...AND get wonderful service, why shouldn't I? You'd think that DM would at least lower their prices to at least somewhat better match Hats Direct to better compete, and really lock up the U.S. market.
Economics and greed is just so complicated... and I want it my way!
Cheers
Colby jack

 

[Art Fawcett]

Agreed Aaron, no arguement there. From Akubra's standpoint that sounds like good sense but that isn't their agreement from my understanding ( admittedly minimal) so the blame or pressure or whatever term you might want to apply should be with Akubra, not DM. I have to believe that this structure makes sense to DM and assume they are savy enough to know what makes their bottom line acceptable whether it's popular or not.

 

[besdor]

I had a long conversation with the director of Akubra. They are somewhat happy with the sales of DM. They know very well the situation here in the US that many vendors wont deal with DM because they sell directly to the public. They are not happy with some of the online stores in Australia because they feel their product is being sold low in price. DM has been dealing with Akubra for years . Whether any of us will be able to buy direct from them in the future is doubtful.



Steven