Dover is being acquired by an investment firm, and taken private.
I thought this was particularly interesting after their recent Dressage Extensions acquisition, and opening several new stores.
Wonder if they’ll finally change their shipping policies under new ownership? I love their stores, but the shipping prices make me reluctant to buy online.
I totally agree on the shipping charges. They once sent me a link for a survey, and I cited shipping charges as the #1 reason I don’t buy there very often. Actually got a second request for clarification. I explained why I didn’t think it was fair to charge more to ship a $200 bridle than it did a $50 bridle (for example), and until they changed their shipping policy, I would rarely order from them. Didn’t hear anything else from them.
I also don’t like how they advertise things on sale for -say- 50% off. “Regular retail” price is $10, 50% off means “on sale” for $5. But the item is normally sold by just about every other horse supplier for $5.50, so you’re really only saving .50. I just hate companies that use crappy math to try and make you think you’re getting a huge bargain on something when you’re not. Let’s hope Webster Capital will make some positive changes…
The main reason I don’t buy from Dover is because of their high shipping charges. Perhaps the new owners will reduce the shipping charges to match the rates of other online tack stores.
I recently ordered my horse’s U Guard and a new turnout halter from them. I nearly fell over when I saw the shipping charge was $18. Unfortunately, many other places wanted to charge similarly for the shipping due to the U Guard. I only went with them because I wanted the halter I had found. Got the halter, and it’s the crappiest thing in the world. The metal fittings are rusting (after three days) and the halter is just very cheaply made. I really hope to find the eskadron value set (in navy) elsewhere, because I’m not about to give them an ounce more of my business, unless I travel up to their store and purchase there. Obviously they’re doing something wrong when it comes to shipping, for everyone else to be able to offer lower prices/free over a certain amount. Sheesh.
I love their closeouts but agree that the shipping often makes it not worth it to order. I finally caved and got a Dover Visa so I pay a flat $4.95 for shipping. That I can live with. And I do get Dover points that turn into Dover gift certificates. But, I certainly understand that not everyone wants to do that.
I will say, their customer service has been great every time I have had to talk to them or return something.
I am afraid that this will have negative impacts. I have had experiences with several companies that were taken private by investors who do not understand the underlying business. Typically it results in firings of experienced expert people, hiring of unqualified workers, and horrible service. Whatever our complaints are, we don’t want to loose the good parts.
I have to agree. I think a year from now we will all reminisce about the days when shipping charges were the main complaint.
Interesting that Dover claims to be: “Littleton-based Dover says it is the leading US multichannel retailer of equestrian products.” Does that mean that someone else it the leading US retailer?
Many if not most investment firms are hands-off, they don’t want to get involved in managing the operations. They just look at revenue, costs, debt ratio, etc, and typically do not have long-term plans for their acquisitions. 5-7 years tops then they get out. Having a viable company left at the end of that period may or may not be in their plans.
hmmm that’s interesting. I have some Dover stock which has always been pretty crappy- it’s shot wayyyy up in the last few days as compared to where it was
[QUOTE=tabula rashah;8121405]
hmmm that’s interesting. I have some Dover stock which has always been pretty crappy- it’s shot wayyyy up in the last few days as compared to where it was[/QUOTE]
Time to unload-yesterday.
[QUOTE=HungarianHippo;8121403]
Many if not most investment firms are hands-off, they don’t want to get involved in managing the operations. They just look at revenue, costs, debt ratio, etc, and typically do not have long-term plans for their acquisitions. 5-7 years tops then they get out. Having a viable company left at the end of that period may or may not be in their plans.[/QUOTE]
I’ve seen investment firms buy companies then sell off the pieces and not too long after (ie <5-7 years) there is nothing left of the company.
Why would they acquire Dover anyway? The owner wants to cash out or something? And if long term is not their plan, who would pick it up after 7 years?
Eh, for the most part I like Dover, I scour their clearance and get good deals, add a $10 off code that I usually have, the shipping isn’t usually bad. I order from them because often, even with the shipping - the clearance items I buy are the very cheapest that can be found online (I comparison shop 5+ sites at a time!)
When I bought my boots at the Denver store - they found one pair of the back ordered boots I wanted in MD - had them shipped to California free of charge. And I bought the boots there due to their very generous return policy.
We will see what the acquisition will bring - I would LOVE it if they would open a store in Northern California - we are a tack store waste land here, yet have an active horse community, and one of the strongest economies in the US - I don’t understand why we don’t have tack stores!!!
My guess: Likely they see a company that has too much debt, and servicing that debt was depressing their profitability & ability to borrow for new investment in the biz. An investment firm often loves debt, as a tax shield to the profits they’re making elsewhere. Dover may have poor inventory management, so there’s too much money tied up in inventory.
They’ll cut as much cost and waste out of Dover as they can. Refinance the debt at a lower cost of capital. They’ll be able to do things that makes the revenue suddenly look good. And maybe the fundamentals of the business and the Dover brand are strong enough that with these changes, it survives long term. Or, they just ride that revenue stream and take advantage of whatever debt Dover is carrying for as long as they can, and close up shop.
I doubt Dover has much in the way of fixed assets (as opposed to a manufacturing company, for example, that would have a lot of capital tied up in their machinery). It’s just people, inventory, and I’m guessing they only lease their retail buildings and warehouses. Might even have already outsourced their order fulfillment functions. It’s all stuff that will be quick and easy to shed.
[QUOTE=merrygoround;8121434]
Time to unload-yesterday.[/QUOTE]
Yep 
Maybe they could afford to reduce the cost of shipping if they stopped sending out those huge heavy catalogs several times a year.
I like that I can stop in their store, find the thing I want doesn’t come in the size I need, and they’ll ship it to my home for free.
Re shipping - when the shipping is ridiculous, I call and there are phone reps that can make it reasonable. A serious flaw that they calculate shipping based on price not weight, which is of course irrational.
I buy from Dover online / by catalog because of the return policy, even for things like saddle pads and bits that have been used.
Will cross fingers for a good result from this acquisition. Being purchased by an investment firm is likely not good news for the customers and the employees. As was said above, the principal strategy behind an acquisition is usually to go after cost with a scythe, swung freely and sometimes without looking first.
Or maybe they will fix the way shipping cost is calculated and satisfy themselves with the increased sales from that alone … :winkgrin: [bad joke]
Worth looking at Dover’s own press release on this matter:
http://investor.shareholder.com/dovr/releasedetail.cfm?ReleaseID=906402
The acquiring firm, Webster Capital, has a solid history in the catalog business with, according to their website, significant investments in Norm Thompson, Sundance Catalog, Ballard Designs, Frontgate, Garnet Hill, Travelsmith, Etc.
Dover should now have funds to roll out more of their original master plan, which included retail locations in additional horse-centric areas. That’s why they went public in the first place. (All from their investor relations page.)
Unfortunately, 2007-2008 wasn’t an auspicious time to go big in the US economy. Dover’s been politely rolling out stores a few a year, and that has probably been good as they have learned the retail bricks-and-mortar business at a reasonable pace.
Dover’s still run by horse people, and I would suspect there might be an equestrian connection with the acquiring firm. Let’s hope.
And yes, the stock shot up 67% in one day when this acquisition was announced, as the stock is being purchased for a very large premium above the price it was trading at. This would indicate Webster sees some pretty solid upside to their investment.
I was up in Plastow today (to get my helmet replaced as I whacked it last week - with my head inside it. Got my replacement for the $200 cost, plus some socks, and a pair of white FITS - the thick ones - for $100 - yay! But I digress…)
The staff is quite happy with the development. They say that control will remain with the current directors, and the major investor’s wife is a local horsewoman. So maybe there will be good things coming. At least they understand the business.
[QUOTE=Wicky;8123230]
I was up in Plastow today (to get my helmet replaced as I whacked it last week - with my head inside it. Got my replacement for the $200 cost, plus some socks, and a pair of white FITS - the thick ones - for $100 - yay! But I digress…)
The staff is quite happy with the development. They say that control will remain with the current directors, and the major investor’s wife is a local horsewoman. So maybe there will be good things coming. At least they understand the business.[/QUOTE]
Fingers crossed that it goes well.
Dover’s got great stuff and I’m glad they exist. The shipping charge keeps me from ordering unless there’s something I really specifically need. I don’t mind paying a fair price for shipping that reflects the weight or size of the item, but buying from them gives me a headache because I have to game out the perfect order that will still be worthwhile with the shipping charge. It’s too much effort and so I just don’t bother. A flat shipping charge or wrapping shipping into the price of the items or even a shipping surcharge for heavy items would make it fairer for both seller and buyer.
Like Real Rush, I also hate the sales-that-aren’t-sales and the gaming they do with the same item being at many different prices depending on what code you use to look it up. I don’t want to have to work for the transaction - I want to know what the price is, that it’s a fair price, and then just decide if this item is a good choice for me or not.
So here’s hoping for a Dover renaissance. 
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