Burton Cans Suspected Gray Market Dealers

by The Editors on February 11, 2011

BurtonlogojpgIn a release sent out today Burton Snowboards has announced that it has “terminated dealer agreements with several US shops suspected of re-selling products through unauthorized channels.”

“I’ve said it many times, and I’ll say it again – I have absolutely no tolerance for gray marketing,” said Jake Burton, Founder and CEO of Burton Snowboards. “I don’t get why a snowboard shop in one part of the world has a right to shit on a local shop in another part of the world for short-term gains. I often think of it in the context of a Japanese dealer shipping product back to Walmart in the US. We want to build a global network of specialty retailers that cares about the sport, the brand, the product and each other. So we’re not afraid to end relationships with dealers that gray market anywhere in the world.”

Burton didn’t mention exactly who the dealers were, but it’s not a bad way to direct a few more sales in house, or to shops on Burton’s “good dealer” list. If you know who got cut, please let us know.

For the rest of the official word, follow the jump.
Burton Snowboards Cuts Ties with US Shops Suspected of Gray Marketing

BURLINGTON, VT (February 11, 2011) Burton Snowboards recently terminated dealer agreements with several US shops suspected of re-selling products through unauthorized channels. This move reflects Burton’s ongoing efforts to protect and support its global network of specialty retailers by aggressively combating gray marketing.

“I’ve said it many times, and I’ll say it again – I have absolutely no tolerance for gray marketing,” said Jake Burton, Founder and CEO of Burton Snowboards. “I don’t get why a snowboard shop in one part of the world has a right to shit on a local shop in another part of the world for short-term gains. I often think of it in the context of a Japanese dealer shipping product back to Walmart in the US. We want to build a global network of specialty retailers that cares about the sport, the brand, the product and each other. So we’re not afraid to end relationships with dealers that gray market anywhere in the world.”

Cutting off suspected dealers is just a part of Burton’s latest efforts to hammer home the message that gray marketing will not be tolerated. A few months ago in mid-season, Burton took unprecedented action by cancelling millions of dollars in US orders that were most likely intended for the gray market in Japan. In addition to tightly monitoring orders and inventory, Burton is closely tracking product that ends up in the gray market and tracing it back to the source.

For the sake of all its retail partners around the world, Burton’s goal is to ultimately eliminate gray market activity. The company will continue to do whatever it takes to protect the long-term health of its global specialty dealer network.

{ 17 comments… read them below or add one }

ogd February 11, 2011 at 9:39 am

The only dude allowed to make unfair gains is Jake. What a kook

The Guard February 11, 2011 at 10:55 am

Burton should thank their reps for Gray Market. They know who sells what and exactly where it goes. It’s all about the money. Don’t let Jake fool you, he turned his back for decades. More Money, More Money, More Money.

Kind of funny that this PRESS hits as Pre – Books are due.

What a JOKE. Buy a Signal Snowboard

David Z February 11, 2011 at 1:01 pm

Doesn’t surprise me out of Burton but at least it sounds like they are trying to get their inventory under wraps. Half their problem is rampant over-production which has nowhere to go *but* the grey market…

Support your local shops and local manufacturers.

Angrysnowboarder February 11, 2011 at 9:00 pm

Anyone remember when Clark Gundlach did his little speech about how they were going to stop gray marketing and killing accounts that did it like two or three years ago? Seriously it’s like history repeating itself again. If you’re dead set against gray marketing and supporting local shops say the names of who did this.

The Guard February 11, 2011 at 9:14 pm

I wonder if someone took cash bribes and trips to local strip bars to turn the cheek?

GREY MARKET is over so it’s time to bash it as if it was last years prom date.

Blow the whistle on the GRAY MARKET retailers right here, right now.

Come on, someone has to have worked at a shop where the product went in the front and out the back. BLOW THE WHISTLE!!!

yeah right February 12, 2011 at 8:11 am

how about destination 1440?

capital crimes February 13, 2011 at 10:13 am

Imagine if Nike tried to pull something like this, half the SB accounts would be gone. HAHA

The Guard February 13, 2011 at 12:35 pm

Good Point Capital Crimes, however half of the Burton accounts are gone – out of business and the other half will be gone if Jake stays true to his word…LOL

Shops like K5 – ZJ’s – and other took a stand and kicked Burton to the curb. And if you take a look at those 2 shops – their performance, they are better without Burton.

Curb Feeler February 13, 2011 at 5:18 pm

Jake has blown it for the all mighty dollar. Consumers need to know about the shady burton tent. All retailers ought to can burton simply for the fact that there are way better snowboard companies(people involved) to deal with.

The Guard February 13, 2011 at 11:10 pm

I’m sure someone at Burton is looking at this.

Do you guys at Burton feel proud? Are you guys really that cool? Come on, I have seen that Clark dude running around trade shows. That Clark dude is like a weird creepy Uncle. Oh, and that Greg dude that thinks he is all that, what a goof. Do these Burton guys even snowboard?

Oh one more thing….take Gravis, Annon, and Analog to the dump. What a joke!!!

yeah right February 14, 2011 at 7:37 am

yeah zj’s is really killing it, they had to turn half their store over to nike and billabong, otherwise they would be gone

The Guard February 14, 2011 at 10:16 am

Yeah Right, making a ton of money is not always the meaning of success. Doing the right thing, taking on new partners such as NIKE & HURLEY allowed the guys at ZJ’s to continue and serve a local beach community with a positive vibe and ethical brand.

ZJ’s kicked Burton to the curb and they did that with the chance of losing their place in the snow market. That takes balls!!! ZJ’s is doing what it takes to survive a very serious economy. Hats off to ZJ’s for making a move to live to see another day.

Yeah Right….you still have time to repent. So repent from your sin.

Angrysnowboarder February 14, 2011 at 10:56 am

Here’s a little bit more to the story if you guys are interested http://www.angrysnowboarder.com/?p=8886 did some digging around found some other sites that are dumping gray market product.

yeah right February 14, 2011 at 11:31 am

hey guard,
I realize you may not know the whole story, but zj’s didn’t have much of a choice. They are lucky to still be in biz. I;m certainly not praising burton as the best, But seriously you think nike and billabong are better partners. Billabong is buying up stores like crazy to cut the rest of us out.
So I see it clearly for what it is. I don’t need any repentance

stoked February 14, 2011 at 4:52 pm

This is so awesome. My gray marketer shop just doubled their orders since Burton wont sell to them. Their open to buy was increased by 50% and I benefited from it. After the last two seasons i could care less about inventory. It’s a pre pay order so my sales manager is stoked.

Thanks Jake. Glad you are trying to drive more sales to your direct to consumer sales platform. Get those increased margins. I don’t blame you. We are both laughing all the way to the bank.

The Guard February 14, 2011 at 10:09 pm

Angrysnoboarder makes the most sense.

Clark should be canned based on his comments regarding GRAY MARKET years ago. It’s too bad that Jake has to do the job of some Creepy Uncle Clark 13 years later.

I hate to say it, but Jake should fire all the kooks, hire snowboarders with MBA’s, kill all the Analogs, Gravis, Annon, Forum, Blend, 4 Square, and Red. Focus on Burton, CI, & Workshop.

It’s nuts to see that Jake wasted millions on all the wack stuff. Man, it must be nice to have money to burn!!!

Nate February 15, 2011 at 7:25 am

Sounds like he’s playing to his more naive retailers that’ve been squawking about it for a couple seasons.

I know who some are, and I know a couple that received. I also know that there will be no stop to it anytime soon. Why? If it gets down to brass tacks, it’ll affect production numbers & sales, they’d have to drop some serious retailers, fire a bunch o’ people in house OR just do a press release like that, let go of a few “smaller” accounts & keep looking the other way on the big ones.

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