I’m not 100% sure, but I understand that their 50 stores are all primarily held by the Tallmans (not franchised, unlike most Canadian Tires). This makes a huge difference in terms of margins. They’ve got stores in every province, but being privately held gives them to advantage of not having to chase quarterly reports for shareholders, so they can afford organic growth.
I don’t know what a stadium naming deal costs, but I suspect it’s about $1-2M/year at the CFL/Winnipeg scale. That’s something like $20-40k/yr per store. The Winnipeg stores alone could afford the naming rights, most likely, but naming is much better bang for buck given their national scope. In particular, the CFL market is likely very much their target market. (I’m in this statistic!)
My dad is a farmer – lives a significant distance out of town. He drives hours to come to Winnipeg just to go to Princess Auto. His mindset is something like: “I save $300 on this hydraulic cylinder by driving in – pays for my gas and the time. And I get to visit!”
Wanna meet at Princess Auto this Saturday for a Lemmy meetup? I don’t work there, I promise ;)
I have to admit, I didn’t realize Princess Auto was buy-the-naming-rights-to-a-stadium successful.
I’m not 100% sure, but I understand that their 50 stores are all primarily held by the Tallmans (not franchised, unlike most Canadian Tires). This makes a huge difference in terms of margins. They’ve got stores in every province, but being privately held gives them to advantage of not having to chase quarterly reports for shareholders, so they can afford organic growth.
I don’t know what a stadium naming deal costs, but I suspect it’s about $1-2M/year at the CFL/Winnipeg scale. That’s something like $20-40k/yr per store. The Winnipeg stores alone could afford the naming rights, most likely, but naming is much better bang for buck given their national scope. In particular, the CFL market is likely very much their target market. (I’m in this statistic!)
My dad is a farmer – lives a significant distance out of town. He drives hours to come to Winnipeg just to go to Princess Auto. His mindset is something like: “I save $300 on this hydraulic cylinder by driving in – pays for my gas and the time. And I get to visit!”
Wanna meet at Princess Auto this Saturday for a Lemmy meetup? I don’t work there, I promise ;)
Ha! I’m not available this week, but a local meetup would be a very cool thing to arrange one day.