The decline of the AKC

[Rave]

http://www.akc.org/about/chairmans_report/2008.cfm?page=9

 

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Chairman's Report

September 2008

The American Kennel Club faces enormous challenges in reversing the continuing decline in

registrations. Today, we are losing market share at an alarming rate, especially in the

retail sector. We are being challenged competitively and financially. The declining

registrations and associated core revenues, if allowed to continue, will fundamentally

change our organization going forward. Make no mistake, the very future of the AKC and

our sport is at risk.

We can all remember some of the premier "name brands" and companies of the

past, leaders in their field. The ones that we thought would be around forever. These

giants, these household names, held the same standing as the AKC. Companies such as:

Westinghouse, Pan American Airlines, Standard Oil Company, EF Hutton, Woolworth's,

Montgomery Ward, just to name a few.

Today, there are at least 30 All-Breed registries in addition to the AKC, whose combined

registration numbers exceed that of the AKC. If this trend is allowed to continue, if we

do not stop the hemorrhaging of declining registrations, we will no longer be the premier

registry in the world, let alone in our country.

Management has been directed by the Board to aggressively pursue all dogs eligible for

AKC registration. We intend to reach out, communicate, and educate those in the retail

sector as to why an AKC puppy is the gold standard and why they should be registered with

American Kennel Club. In achieving this objective we intend to continue to "raise

the bar" by vigorously enforcing our policies. This action is essential to protect

and preserve our leadership.

As the pre-eminent and only not-for-profit registry, we live our values everyday with our

commitment to the integrity of our registry and the excellence of our inspections

program.

Having AKC involved through our compliance and inspection programs elevates the quality

of AKC puppies.

Our Compliance Program allows us to educate breeders about puppy socialization, genetic

health screening, grooming, exercise requirements and adherence to breed standards. This

is the benchmark of excellence we expect of all AKC breeders whether under mandatory or

random inspections.

In 1996, when the Board first passed our care and conditions policies we knew it was, and

still, is the right thing to do. We know that insisting upon good breeding practices is

the right thing to do. And we intend to continue to do the right things for dogs. The

American Kennel Club provides what no other registry provides. In order to continue to be

the dog's champion, we must remain a strong, viable organization.

We are losing litters, dogs and entire colonies to competing registries. If litters and

dogs aren't registered with AKC, we can't inspect them, we can't help the breeders and we

can't grow our sport.

AKC used to dominate the marketplace. Even places like Macy's and Gimbels sold AKC

puppies. Many pet owners who bought these puppies, and I was one of them, tried their

hand at showing and breeding. These owners who purchased their first purebred from a

retail outlet, not only added to AKC's registrations, but those who wanted to advance in

the sport, then sought out fanciers to continue their journey.

The available pool of AKC registrable puppies is being lost to other registries, along

with potential participants in the sport. As we lose registrations, we also lose our core

revenues, our ability to generate alternative revenues and our legislative influence. We

need to get back on track growing our influence as the premier registry in the world.

We know that AKC puppies and our breeders are the best. They are the "Gold

Standard" in the marketplace. We need to continue to reinforce that. Let's not allow

those other registries to weaken us or put us out of business. Let's not allow them to

make AKC a nostalgic memory as well.

For decades we collected millions of registration dollars from AKC pet owners. These

millions overwhelmingly subsidized our sport. Today, this scenario no longer exists.

Twenty-five years ago almost all of our revenue was registration related. Last year less

than one half of our revenues came from registrations. Dog registrations peaked at 1.5

million in 1992. By the end of 2008 it is projected we will register only 725,000 dogs.

This is a staggering 53% decline.

It was not that long ago, that there were only two All Breed registries - the AKC and

UKC. Today there are at least 30 All-Breed registries. Going forward, we need to do

whatever is necessary to stop our registration free fall. We can and will be aggressive

in pursuing all AKC-registrable dogs and do so while upholding our values and high

standards.

As we go forward, let me make it clear to all, that the AKC will continue to

enthusiastically support the Parent Clubs' Codes of Ethics including, as it relates to

their members' sale of puppies through commercial entities.

If the current trend continues and dog registrations decline to 250,000 over the next

several years, AKC will face an annual revenue shortfall of $40 million. To put this in

perspective, if this scenario occurred, and we relied solely on raising the event service

fees to make up for this revenue shortfall, the fee would be a staggering $20 per entry.

Our preference would be to grow our registrations to the point that we could lower, not

increase event fees. Some would say the obvious solution is a significant reduction in

expenses. However, a $40 million revenue shortfall would necessitate a reduction of our

expenses by two-thirds. This is totally unrealistic.

Let me remind you that since 2002 we have reduced our headcount by more than 50 employees

and aggressively controlled expenses, which have remained relatively flat since 2003, in

spite of inflation. Our problem is clearly not an expense problem. It's a revenue problem

and a serious revenue problem.

We need to secure our AKC and our sport so that future dog lovers can experience the same

joys and passions we have so fortunately enjoyed for more than a century. No one is

suggesting we lose sight of our rich heritage and traditions, but let's not allow the

stated goal of our competitors to become a reality.

As Bill Wrigley Jr. said recently in the New York Times, "We must respect the

past...but at all times do what is right for the future."

Sincerely,

Ron Menaker

Chairman

[ShoresDog]

Arrgghh. The right future for the AKC would be extinction! I wonder what he meant by "whatever it takes"?

[Ooky]

AKC used to dominate the marketplace. Even places like Macy's and Gimbels sold AKC

puppies. Many pet owners who bought these puppies, and I was one of them, tried their

hand at showing and breeding. These owners who purchased their first purebred from a

retail outlet, not only added to AKC's registrations, but those who wanted to advance in

the sport, then sought out fanciers to continue their journey.

 

*gag choke splutter*

 

I think they are wanting to promote more pet store puppies - and hey, why not have Kohl's sell them too... You never know, it just might get more converts into "showing and breeding".

[Rave]

oops look like melanie and I posted this at the same time. can we get the two threads merged? thanks!

[Sue R]

*gag choke splutter*

 

I think they are wanting to promote more pet store puppies - and hey, why not have Kohl's sell them too... You never know, it just might get more converts into "showing and breeding".

 

Kohl's? How about going straight to Wal-Mart?

[Tranquilis]

Here, I think, is the really scary line:

Management has been directed by the Board to aggressively pursue all dogs eligible for AKC registration.

Well, now we know where certain recent measures have come from... Things like the AKC's "Administrative Pedigree Research Service," which is essentially a grab for dogs previously registered in other registries and for the un-papered pet sales market. IOW, the AKC is open for business to pretty much anyone who wants a shiny bit of paper for their dog, no matter what the origin, and no matter how unqualified. Many breeders withhold papers on unsound/unsuitable dogs until after the spay/neuter contract has been fulfilled - That's one of the very few tools they have in enforcing a spay/neuter contract. And the AKC has essentially agreed to paper those dogs anyway, no matter what the breeder's intent was, nor what the contract might say. In short, the AKC has kicked the legs out from under their core constituency.

[Sue R]

I received an email from a friend. One of her neighbors thinks the world of AKC. Before her state tightened down on puppymills, she ran 150 breeding bitches with AKC registrations. My friend has been by that place. Abandoned facilities now, she's seen the cages and the house trailers that "housed" those wretched dogs.

 

Any crimp that the AKC put into puppymilling by tightening up their act, has been more than made up by those so-called registries that have proliferated in our "anybody can create a registry" system. Now I think AKC is looking to recoup lost market share and income by following the old addage, "if you can't lick 'em, join 'em!"

 

I don't mean to paint all members of AKC with a bad, broad brush. Many are very conscientious people who do the very best they know how by their dogs and are true dog lovers. I think it's largely a case of an organization and a core of people who, together, are calling the shots and doing the harm.

 

We have poor breeders and dogs in hideous circumstances because of greed, ignorance, and selfishness, and sometimes a misplaced sense of pity on the part of those who know better but still support the puppymilling industry.

[Tranquilis]

I don't mean to paint all members of AKC with a bad, broad brush. Many are very conscientious people who do the very best they know how by their dogs and are true dog lovers. I think it's largely a case of an organization and a core of people who, together, are calling the shots and doing the harm.

More to the point, it's "any port in a storm." But, like a distressed vessel headed for sanctuary, they've not pulled into a safe haven, but rather a pirate's den.

 

The core constituency of the AKC are the responsible, ethical breeders, or those who do their damnedest to try to be REBs. Many times, they're too ignorant to actually succeed, but they're the people to who like to think of themselves as "The Good Guys," and who abhore random breeding, puppy mills, and large scale commercial breeding.

 

By embracing commercial puppy-farming, and by creating a service that will allow people to easily bypass spay/neuter contracts, the AKC is alienating their most reliable core supporters - In their desperation to make ends meet, they've undertaken questionable methods that will cause more breeders to flee, which will only further exacerbate the problem.

 

It's a de-generative loop; AKA 'vicious spiral;' AKA 'death spin.' Anything they do along this line will make the problem worse. Doing nothing at all will make the problem worse, too. What they need is an outside-the-box solution.

[DebC]

By embracing commercial puppy-farming, and by creating a service that will allow people to easily bypass spay/neuter contracts, the AKC is alienating their most reliable core supporters - In their desperation to make ends meet, they've undertaken questionable methods that will cause more breeders to flee, which will only further exacerbate the problem.

 

So much for their so-called "gold standard", eh? When I can open the classifieds any day and see AKC this and that from Joe Blow, Breeder Extrordinaire then how valuable is that paper, really? Dog + AKC registration does not always equal excellect dog, but to BYB it equals more $$.

 

They are ripe for a fracture in the membership. Perhaps the core supporters will break off? Of course, I don't know if that would be good or bad - could be like a Hydra - cut one head off and 2 more pop up!