The Education of Eddie Goldbaum

How a market research principal started a sporting goods retail business and plans on opening more stores using off price specialists

Eddie Goldbaum’s greatest passions are market research and baseball.  His Burbank, CA –based Area Phone Bank has conducted over 1 million surveys since he opened the business with his brother Buddy in 1981. His firm serves retailers and consumer brands, especially in sporting goods. One of his clients prompted him to open his own store.  While doing his due diligence on retail business development, he discovered the Off Price Specialist Show, and that – as Frost would say – has made all the difference.  In a special interview, Eddie discusses the critical importance of Off Price plus some marketing tips that have helped him become a retail professional overnight.

What inspired you to go into retail?
One of our market research clients approached me about ‘rep-ing’ them.  They are a bat manufacturer that made a special half metal, half wood bat.  I was helping them sell bats through market research and they asked me to help them sell directly in the west.  I did some research to

• find out who was in my area;
• what other products should I carry; and
• assess my building where I have my practice to see how I could convert it into retail;

I decided to jump straight into retail (versus selling store to store) because there is nothing more satisfying than building your own business.  My next goal is to have 5 sporting goods boutiques like the one I started.

I’ve done market research for some major sporting goods stores.  When you go into these stores, the apparel is in the center and the sporting goods are along the wall.  I knew that I needed to dress up my store with apparel.  Baseball bats and racquetball rackets aren’t pretty, but clothing is.

How did you find the Off Price Show? 
I was looking up post-sale clothing and Off Price popped up.  I started reading more on www.OffPriceShow.com.  I was planning on attending a market research conference in Las Vegas that ran simultaneously with the Off Price Show, so I decided to check out both.  That was August 2007.  I went originally to try to get clients for my market research business.  And then I remembered that I needed product for my new store!  The first exhibitor I met was Jacob at Pacific Teaze (Booth #338 at the August Show).  He was so nice and – talk about working hard – he and his people were so helpful.  Their main office is very close to my store – about 2 miles away – and I’ve been over there several times since meeting at the show.  They guided me so well at that show that I connected with at least a dozen other exhibitors who are now part of my permanent vendor roster.  EVERY CLOTHING VENDOR I WORK WITH COMES FROM THE OFF PRICE SHOW, including NAFTA Traders (Booth #1346 at the August Show), who have excellent values on shoes.

What makes All Pro Basic Sporting Goods special?  Why do people want to come into your store?
People come walking down the street in front of my store going ‘do wah diddy diddy dum diddy do’ and they see the clothing in the window and stop.  They are completely surprised by the pricing and they come inside.  I try to pass on the savings to them, which is what it’s all about.

Why is the Off Price Show important to your business?
It’s neat to get to interact with people.  At the Off Price Show, you don’t just look at a catalog, you talk to someone and they can guide you or give you a better deal.  I came across so many vendors at the show and they would often say, “we don’t carry that, but John Doe over at Booth ABC has that and he can help you.”

How is your store doing currently?
We are growing, not as fast as we would like to, but we are growing.  My biggest obstacle is knowing my customer.  Of course, it is the economy.  But today my customer is a bit different than the first year when we opened.  Knowing your customer day-by-day and where to advertise, and telling people who I am, is so important.

As I approach my first year, I’m not sure where I’m supposed to be, but I grow every month.  I’m learning who I am as a retailer every day, and how I should advertise.  A customer walked in the other day and thought I was a big team wholesaler.  When I told him that we were a retailer, he bought a DynaFlex Gyro and a couple of tank tops.  He told his friends and they started coming in.  So you’re looking at ways to better communicate to the public that we are a consumer retail store. 

Another gentleman came in and thought that I carry only really high-end stuff.  I walked him around the store and showed him stuff and his jaw just dropped.  It’s the same story as Off Price.  People thought for years that the off price market was low-end schmada.  They are sadly mistaken!  Thanks to Off Price, I am going to open a new men’s boutique concept and a retail section for my daughter’s dance studio.”

To learn more about Eddie Goldbaum’s businesses, visit www.allprobasics.com and www.areaphonebank.com.