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October 2016 Entrepreneur of the Year

With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.

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phOTO COuRTEsy Of pETER duCOmmun OCTOBER 2016 BCBusiness 69 says Kevin Harris, a former Canadian skateboarding champion who operates Richmond-based Ultimate Distribution, Canada's largest action-sports distribution company. To illustrate, Harris oªers an example: "If a rep from West 49 [a Cana- dian action sports retailer], which has more than 70 stores in Canada, came into PD's shop with a $500,000 purchase order, he wouldn't even pick it up. He'd have that salesman out the door in 30 seconds. Sure, he'd be able to cash a big cheque, but PD's line would be dead inside a year." Ducommun learned a few lessons about the perils of overextending when Skull Skates shifted its headquar- ters to Los Angeles in 1983—a move sparked by Rick Ducommun's burgeon- ing success in Hollywood. An aspiring actor and stand-up comic, Rick would eventually appear in a spate of ®ilms including Spaceballs, Groundhog Day and The 'Burbs. Ducommun followed in Rick's steps and opened a retail store on Melrose Avenue and a warehouse in Van Nuys. At the same time, the broth- ers maintained an Oak Street outlet in Vancouver, as well as shops in North Vancouver and Nanaimo (the latter man- aged by Ducommun's mother, June). Living the fast life in the Hollywood Hills—striking promotional deals with legendary pros such as Christian Hosoi and Steve Olson and rock bands like the Red Hot Chili Peppers and Social Distortion—was heady stuª, and it raised Skull Skates' pro®ile, but Ducommun soon soured on Southern California and its plastic, status-conscious society. A sense of tension permeated the industry, and more than once he had a gun pulled on him. "Some of our suppliers were in rough areas—Watts, South Central. The gangsters wanted to know why you were in their territory. I'd say that I was from Canada. That always worked. It was like my Get Out of Jail Free card." Ducummon also felt the company was losing its way: "We were selling a lot of product but weren't making much money. We were just spinning our wheels." In 1988, with the skateboard industry slumping due to a sudden shift from freestyle and ramp skating to gritty "street style" skating (which utilized smaller boards and incorporated pieces of the urban landscape), Ducommun moved back to Vancouver and consoli- dated operations in one store. The ®ive-year California experiment convinced him that the key to longevity was staying small and f lexible, cultivating a reputation for quality merchandise and turning out a wide variety of products in modest quantities. "Some companies will pro- duce 80,000 boards with one design. If it doesn't sell, they are in trouble. I might make 30 boards with one design." In that sense just about everything Skull Skates does is a limited edition, which suits Ducommun's mantra of never letting supply exceed demand. "Always leave people wanting a little more," he says. Through his T-shirt and hoody designs, posters, zines, graphics, web- site, online videos and brooding Village of the Damned imagery—much of which he generates himself—Ducommun has managed to create the impression that by buying Skull Skates' gear, customers are joining a secret society. To achieve this, he maintains strict control over which type of stores carry his brand. He avoids anything located in a mall or out- lets where the skateboards are little more than an afterthought to the business of selling shoes and clothing. "PD has a very unique mindset," says Marco Feller, general manager of Supra Distribution, a North Vancouver company that handles 20 skateboard brands. "I think what he's trying to do is quite noble, and he's devel- oped a loyal following." All told, Skull products are now sold in about 80 Cana- dian stores, with another 20 in Japan and a few more in the U.S. and Germany. The only other licensed Skull Skates shop (using the PD's Hot Shop name and selling Skull Skates products) is in Japan. Oddly, it's located just oª a highway in the countryside out- side of Nagoya and is only open from 8 to 11 p.m. "It's in the middle of nowhere," says Mike McKinlay, a former pro skater who has visited the shop. "You wouldn't think they would get any customers, but people drive for hours to get there. They arrive by the busload and buy a shitload of stuª." People also make pilgrimages to PD's Hot Shop in Vancouver, according to employee Jeª Cole, who is also president of the Vancouver Skateboard Coalition. "You wouldn't believe the number of people we get who say, 'Oh my God, I've wanted to come here my whole life.'" But seeing the home of Skull Skates is just one of the attractions for visiting boarders. Vancouver is regarded as a skateboard mecca—boasting 14 skate parks, the most per capita in the world, plus two indoor facilities. The SBC Restau- rant, which opened on Vancouver's East Hastings in 2013, combines a café with a SeCluDeD SkullS The only other PD's Hot Shop, licensed to sell Skull Skates products, is in the countryside near Nagoya, Japan. Loyal customers travel from hours away and arrive by the busload

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