Word Count: 1677
The ski industry has been around since the beginning of the century. Since that time the retailing industry of the ski world has been on a steady increase. At the beginning of this decade the increase began to skyrocket. However, skiing was not the reason for the growth. The reason for the dramatic increase in industry sales in the retail world of skiing was due to snowboarding. By now almost everyone in the country has either seen a snowboard, ridden one, or knows someone who has. The purpose of this paper is to discuss what snowboarding is, and to shed some light on the financial aspects of this new sport.
Snowboarding hit the scene in 1972. Jake Burton, at the age of 15, decided that he had enough of skiing and wanted to do something a little different. With a little ingenuity and some of his dad’s tools he began working on the first snowboard. His project lasted about three weeks and when he was done he decided to take his invention to the slopes and she how it worked. This was almost the end of snowboarding. Every slope Jake went to denied him access, saying that they only allowed skis on the hills. Jake was a

very determined kid and this did not stop him. He began hiking every backcountry trail he could find and he became quite efficient at snowboarding. At the same time he continued to knock on all the ticket windows at every resort but still had no success. He decided that the only way he could prove his invention was nothing more than a different version of a ski would be to make a video of himself riding down the back country hills. This was no easy task, keep in mind the year is 1972. Jake was determined and he met up with a guy named Craig Kelly who at the time was into video production of skateboarding and skiing. Jake gave the sales pitch and Craig bit hook, line, and sinker. The next week the video was complete and Jake took it to all the resorts with Craig and they pled their case. By this time Jake had made about a dozen more prototypes of his snowboard and all his best friends were riding them. Finally a small mountain, Okemo, said "O.K. Jake you can ride, but only during the week" This was all it took and from then on almost anyone that saw this crazy kid zipping down the hill on a wooden board with both feet strapped to it began to ask questions. From that moment on Burton Snowboards, INC. was created and is now the number one manufacturer of snowboards in the world. (Burton 1988).
In the 1980’s snowboarding was still not extremely popular and it

was very rare for a resort to allow it on the hills. As the yuppie age ended and the Generation X’ers began to get into skateboarding,
BMX bikes, bungee jumping, and roller blading, snowboarding took off. By 1991 eight-five percent of all ski resorts allowed snowboarders to share the mountains with skiers. (Gatlin 1993)
According to the same article over 73% of the people snowboarding in 1991 were under the age of 25. This age group typifies Generation X. Along with snowboarding came an entire new image. Brad Wilson, the marketing director for Big Bear
Mountain in southern California summed it up well with this quote:
"It was kind of like the 1960’s all over again, snowboarders dress differently, they have different haircuts and they ride on this different-looking board down the hill." (Feldman 1995). In an age where being different is normal, snowboarding just seemed to fit right in to the picture. Now, in 1996 only 3% of ski resorts do not allow snowboarding. The resorts have realized that if they want to stay in business then catering to snowboarders is one of the easiest ways. Many resorts have begun to add new trails to the mountain just to accommodate snowboarding. Most of these extra slopes have huge jumps, half-pipes, tables, trashcans, metal pipes, and even cars for snowboarders to jump on or over. The most important feature of these special slopes is the fact that skiers are not allowed on them. The reason that many resorts have added

these snowboard parks is because of the problems between skiers and snowboarders. (Feldman)
Roger Hauser, the director of Massanutten Ski School, said that there were quite a few reasons the resort added the "snowboard only" park five years ago. First of all, he said the mangers of the mountain were taking a lot of "heat" from skiers because of all the jumping and tricks the snowboarders were doing on the slopes. He said that when kids are doing tricks they are going to be falling down, when they fall down people run into them. So the mountain added the park and now limits snowboarders who want to do tricks to use that slope. The rest of the mountain is still open to snowboarders. Hauser said that since the park was opened there has been a dramatic decrease in injuries between skier and snowboard collisions. He also said that business has picked up about 15% in the past five years, which he believes is attributed to snowboarding.
Ski resorts are not the only place that business has picked up in the past five years. The main area of financial growth is the actual snowboard manufactures of snowboards. Currently there are 117 snowboard companies in the world. (Schacter) Of the 117 there are five that hold 50% of the market. Burton is number one with an

annual sales of around 30million, Ride is number two, and three, four and five are: Sims, Morrow, and Anthony. (Baker 1995)
Morrow and Ride have seen the most dramatic increases in the industry since 1993. The total current assets for Ride in 1993 were
$2,365,000 and in 1995 they were up to $37,139,000. Morrows total current assets went from $6,607,000 to $31,179,000 in the same time period. Net sales for both companies went up dramatically in the past five years also. Ride has seen a net sales increase of 611.2% while Morrow’s sales have increase 74%. (These figures are directly from the company records of both companies.)
The cost of snowboards is one reason that sales have gone up for these companies and it is also another reason for the popularity of snowboarding as compared to skiing. If Joe Public sixteen-year-old wants to start snowboarding he is going to need to get himself some equipment. The average cost of a complete setup, which includes a snowboard, bindings that hold the board to the feet of the rider, and boots, costs around $450 according to Transworld
Snowboarding 1996 buyers guide. If the same kid would want to set himself up with a ski package he would have to get the skis, bindings, boots, poles, goggles, neon ski-outfit (required for skiers), and multiple other flashy accessories. The average cost of a new ski setup is around $850 according to Ski magazine 1996

buyers guide. It is clearly cheaper to get into snowboarding. This price advantage of snowboards over skis is much more attractive to the average teenager who probably doesn’t have much money anyway. It is also more attractive to Mom and Dad to spend less on a snowboard than skis.
Sepp Kobler, the manager of Freestyle Sports in Charlottseville, said that five years ago snowboards and accessories accounted for about 5% of all sales in the shop. Now it accounts for close to
30%. Kobler feels that if it were not for the dramatic increase in snowboarding he would have had a hard time keeping the shop open. "Kids are into it, and so are there folks, its cheaper, its more fun, and its easier to learn" says Kobler. A sales clerk at Bear
Mountain, Brian Almarez says that is extremely hard to keep the hooded flannel shirts in stock. Also, the baggy pants "fly out the door faster than natty neon-colored ski wear." Almarez also states that "you don’t see too many snowboarders out there who aren’t making a fashion statement." (Feldman)
The final area of retailing that has reaped many positive benefits from snowboarding is in the sales of lessons. The author, a professional snowboard instructor, has seen lessons go up 50% each year over the past three years at Massanutten. Considering

that a one-hour private lesson costs $30 this is a huge increase in revenue for ski resorts. Hauser, the Massanutten Ski School
Director, expects snowboard lessons to be on the rise this year.
"The rental shop has ordered about 150 new boards and we have added a few more promotional events to keep up with the demand for snowboarding" said Hauser. According to the Professional Ski
Instructors of America winter 1996 newsletter, every resort that is
P.S.I.A. accredited offers both ski and snowboard lessons.
Currently 35% of all beginner lessons at resorts are snowboard lessons. (PSIA)
Snowboarding is currently in a huge growth stage. Even though it came out in the seventies, the most dramatic increase the industry has seen has been over the past 5 years. It is a sport that is primarily appealing to Generation X. The image that goes along with snowboarding is primarily defined as original. Snowboarders do their own thing, but nobody (except the occasional skier) seems to mind. Snowboarders have brought a breath of fresh air to many businesses. These businesses range from manufacturers of boards and equipment all the way to ski schools that are offering lessons.
Snowboarding is bringing large amounts of revenue to all of these businesses. There are a few primary advantages snowboarding has over skiing such as: appeal to younger population, cost of getting started, and current popularity. From all of the research here it

would be easy to assume this trend will continue to grow. The current population is into extreme-sports and generation X is continuing to grow. It would also be easy to assume that over the next few years not only will there be an increase in the number of people snowboarding, but there will also be an increase in the cost of snowboarding equipment. These factors will have positive benefits on both the manufacturers of snowboards and the retail stores selling the boards and equipment.
Sources
Baker, Molly (1995) "Snowboard Shares Zip Higher as Investors
Join in the Sport," Wall Street Journal, Dec.18, sec:C1
Burton, Jake (1988) "Burton: Now and Then," Burton Video
Productions, Burlington VT
Gatlin, L. Dana (1993) "Snowboarding boom begins to include the older set," Christian Science Monitor, Jan. 15, p14.
Feldman, Paul (1993) "Snowboard Siege," Los Angeles Times, Jan.
18, sec:A3
Hauser, Roger (1996) Personal Interview, Ski School Director,
Massanutten Ski Resort, Harrisonburg, VA Nov. 6.
Kobler, Sepp (1996) Personal Interview, Manager, Freestyle Sports,
Charlottesville, VA Nov. 5.
Morrow Snowboards Inc., Company Records, 2600 Pringle Road

South East, Salem OR 97302
Ride Inc., Company Records, 8160 304th Ave. Southeast, Preston
WA 98050
Keywords: word count industry been around since beginning century since that time retailing industry world been steady increase beginning this decade increase began skyrocket however skiing reason growth reason dramatic increase industry sales retail world skiing snowboarding almost everyone country either seen snowboard ridden knows someone purpose this paper discuss what snowboarding shed some light financial aspects this sport snowboarding scene jake burton decided that enough skiing wanted something little different with little ingenuity some tools began working first snowboard project lasted about three weeks when done decided take invention slopes worked almost every slope jake went denied access saying that they only allowed skis hills jake very determined stop began hiking every backcountry trail could find became quite efficient same time continued knock ticket windows every resort still success decided only could prove invention nothing more than different version would make video himself riding down back country hills easy task keep mind year determined with named craig kelly time into video production skateboarding gave sales pitch craig hook line sinker next week video complete took resorts with craig they pled their case made about dozen more prototypes snowboard best friends were riding them finally small mountain okemo said quot ride only during week quot took from then almost anyone crazy zipping down hill wooden board both feet strapped questions from moment burton snowboards created number manufacturer snowboards world burton still extremely popular very rare resort allow hills yuppie ended generation into skateboarding bikes bungee jumping roller blading took eight five percent resorts allowed snowboarders share mountains skiers gatlin according same article over people were under group typifies generation along came entire image brad wilson marketing director bear mountain southern california summed well quote quot kind like over again snowboarders dress differently they have different haircuts ride looking board down hill feldman where being normal just seemed right picture resorts allow have realized want stay business then catering snowboarders easiest ways many have begun trails mountain just accommodate most these extra slopes huge jumps half pipes tables trashcans metal pipes even cars jump over most important feature these special slopes fact skiers allowed them reason many added these parks because problems between skiers feldman roger hauser director massanutten school said there were quite reasons resort added park five years first said mangers taking heat from because jumping tricks doing when kids doing tricks going falling when fall people into them added park limits want tricks slope rest still open hauser since park opened there been dramatic decrease injuries between skier collisions also business picked about past five years which believes attributed place business picked past years main area financial growth

actual manufactures snowboards currently there companies schacter hold market number annual sales around million ride number three four sims morrow anthony baker morrow seen most dramatic increases total current assets morrows total current assets went same period both companies went dramatically past also seen while morrow figures directly company records both companies cost gone also another popularity compared public sixteen year wants start going need himself some equipment average cost complete setup which includes bindings hold board feet rider boots costs around according transworld buyers guide would want himself package would skis bindings boots poles goggles neon outfit required multiple other flashy accessories average cost setup according magazine buyers guide clearly cheaper price advantage skis much more attractive average teenager probably doesn much money anyway attractive spend less than sepp kobler manager freestyle sports charlottseville accessories accounted shop accounts close kobler feels hard keeping shop open kids folks cheaper easier learn says kobler clerk bear brian almarez says extremely hard keep hooded flannel shirts stock baggy pants door faster than natty neon colored wear almarez states many aren making fashion statement feldman final area retailing reaped positive benefits lessons author professional instructor lessons each year three massanutten considering hour private lesson costs huge revenue hauser massanutten school director expects lessons rise rental shop ordered boards promotional events keep demand professional instructors america winter newsletter accredited offers currently beginner psia currently huge growth stage even though came seventies sport primarily appealing generation image goes along primarily defined original their thing nobody except occasional skier seems mind brought breath fresh businesses businesses range manufacturers boards equipment schools offering bringing large amounts revenue businesses primary advantages such appeal younger population getting started current popularity research here easy assume trend will continue grow population extreme sports continuing grow easy assume next will people will equipment factors positive benefits manufacturers retail stores selling boards sources baker molly shares higher investors join sport wall street journal then productions burlington gatlin dana boom begins include older christian science monitor paul siege angeles times roger personal interview school harrisonburg sepp personal interview manager freestyle sports charlottesville company records pringle road south east salem company records southeast preston
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