The Chainsawr's Efco Story (Please read this if you're considering buying one.)

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retoocs555

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Read this before you buy an Efco, especially if the warranty is a determining factor in your purchase.

I’ll start at the beginning, for us anyway. We started selling the Efco brand here at the chainsawr about 4 years ago. At that time (late 2008 early 2009) Efco was going through some major changes here in the USA to their sales distribution strategies. Deals to produce saws for Cub Cadet and John Deere were coming to an end (I would love to know why, but I have my hunches), and underperforming regional distributors were being canned in exchange for ones that would push the brand’s new 5-year warranty and more professional image harder. Around this time Efco also changed its policy for online and catalog sales. It used to be that Efco was like Stihl, no sales of power equipment unless it physically walked out your door. About 5 years ago that changed for an ‘anything goes’ policy as long as you could move more units. So, we signed on with Efco at the beginning of 2009 to join in their new Era of professionalism and push to make them a real 3rd tier power equipment brand in the USA.

Three years went by of slowly building sales, spending lots of money on advertising, and trying to sell the hell out of a low margin chainsaw. I had figured it would take at least 5 years before we were selling enough in Efco to make it worth our time; well we never made it that far. For middle range saws it was always an easy sell, on a 156 over a hardware store 455 Rancher. No brainer right? The 152, 156, 165, and 132s were all good solid models at low prices. The small saws, sub 152 (except the 132s), were always problematic, and the MT7200/MT8200 were the worst performing, floppiest, heaviest chainsaws I have ever had the displeasure of dealing with. Of all the MT8200s we sold, there were only 2 that we did not buy back from the customer after repeated servicing under warranty etc. So, that gets me to the warranty related section of my story.

In 2009, 2010, and 2011 we were able to essentially administrate our own warranty on all repairs other than whole saw replacement, or complete motor failure. We got used to this situation and got into the habit of doing warranty repairs right away for the customer to get them happy and going, then submit our warranty claim paperwork once or twice a year depending on how many claims added up. For the most part the warranty was all for small items. 100s of stop switches (boy I wished they would do away with these, I had some that didn’t even last 1 day!), starter springs, carburetor cap removal/readjustment/reinstallation. Some of the common, more serious warranty claims would include coils, and shattered mufflers along with the occasional new 100% defective saw or new saw missing parts. Let me stress this, we NEVER ABUSED our warranty. It covered ‘manufacturer’s defects’ so if it was we covered it. Giving us the dealer the responsibility to make these judgments worked very well in our case, I never would have’ bitten the hand that feeds me’. More than once we lost dishonest customers who wanted their mistakes covered under warranty because, they were the customer, and they were the ones standing in front of me yelling and stomping, “how could Efco ever know? JUST COVER IT!” but we never did. We were always honest to a fault in our warranty claims.

So, at the end of 2012 when we submitted our warranty claims every last one was denied. This was unacceptable to us since with the 5 year warranty, and low sales margin, we were relying on the income from warranty repairs to even justify the shelf space for Efco! Our distributor told us they were in the same position, having had none of their warranties which they submitted for other dealers paid. We are talking between dealers and distributors, tens of thousands of dollars in unpaid claims by Efco on the Northeast alone. You would think I would go ballistic, but no I made civil mild protests to Efco. I’m not the type to burn bridges for spite alone.

January, 2013. We get notice from Efco that our dealership is canceled and we may reapply with Efco, and that our distributor has also been canned. I know that this was for no other reason than to try to wash their hands of the debt they owed us. If it wasn’t insulting enough that a well established dealer should have to reapply and start from scratch, they want a minimum order of power equipment units from the new distributor in order to establish the new account, that is IF I’m approved by Efco. They must be insane. I already have $10,000 in un-sellable new saws in stock.

So, here is what I think Efco’s current sales strategy is. Sell the majority of the product online or mail order while maintaining the false image of a servicing dealer network. That way before somebody buys their next Efco on Amazon.com or Northern Tool, they can look at the Efco dealer map and see that, “Yes, there is a servicing dealer near me that can provide the warranty work!” Unfortunately, know that dealer near you will probably not provide the warranty work, and if they do Efco will not be paying them to do it.

The worst part for us is that the majority of F-holes (Efcos) we sold, we sold based on our personal recommendation. No customer EVER came in and said “I want an Efco 156” etc. etc. They came in with an open mind about buying whatever new chainsaw we thought was best for them, trusting in us. Now, over the coming years we are really going to have egg on our faces. The number of times I said, “These Italian saws are tough and you can’t beat the warranty”, is beyond counting. In order to keep our integrity this whole situation is going to cost us $1000s in un-backed warranty work, and buying back saws we can't stand behind.

So, let it be known. Do not factor the warranty into your decision to buy an Efco.

I know this is a long post, but I think that many of you will find it interesting worthwhile reading material. I'm not an avid forum poster, so you may not hear from me again on this, but I did want to put our experience out there.
 
Geez! Who was your previous distributor, Lawn Care out of PA? They were as honest as they come. (And for that matter, who is the new one?)

Did Efco actually admit that all outstanding claims are being washed away with these changes? If so, that may not even be legal. I've never heard of a distribution change resulting in the cancelation of all dealers. True, any dealer would have to apply for credit if he doesn't already have an account with the new dist., but that's to be expected. Also, the idea that you have to "anti up" with an opening stock order when you already have plenty of product is beyond insulting.

You may be right that they wish to creat the impression of a dealer network, but their real direction is to dump saws on the internet.............until they exit the US market, which is what I am inclined to predict will be happening here.
 
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Hmmmm I just recommended Efco to a friend Friday. I'll let him know the latest before he makes the purchase.

Been there before in the automotive world. Many times the company's change in direction affected customer confidence in the product so much that after some time passed, it caused the company to fold and left us holding the bag for the remainder of the warranty period with no factory support.

It's really a shame to hear how it appears that they have decided to do business.
 
That's a sad story, enough to make ya want to spit nails! But I want to commend you on your integrity and character. You are being very forgiving and humble to your offenders(which is what i would call this, an offense to you and your customers) I have done business with you guys several times since I learned about the chainsawr site on here years ago. You and your staff have always been a group of stand up, knowledgeable guys, and your site is an excellent resource with your links to ipls and such. The good book says we reap what we sow....that said... you should be prepared to reap a harvest for your handling this in the way that you are. And Lord knows what that company is in for! Never used an Efco product before and don't think I will be in the future.:D
 
Geez! Who was your previous distributor, Lawn Care out of PA? They were as honest as they come. (And for that matter, who is the new one?)

Did Efco actually admit that all outstanding claims are being washed away with these changes? If so, that may not even be legal. I've never heard of a distribution change resulting in the cancelation of all dealers. True, any dealer would have to apply for credit if he doesn't already have an account with the new dist., but that's to be expected. Also, the idea that you have to "anti up" with an opening stock order when you already have plenty of product is beyond insulting.

You may be right that they wish to creat the impression of a dealer network, but their real direction is to dump saws on the internet.............until the exit the US market, which is what I am inclined to predict will be happening here.

Old distributor: RD Faulkner, also an outstanding company who got burned covering warranty claims for their dealers instead of Efco. New Distributor EDM (Out of MA, I had to look them up as they don't carry much of anything).

Obviously Efco didn't tell me that having to re-apply with corporate was to clear out my warranty. It would be normal for a new credit app with the new distributor, EDM. But, Efco wants us to re-apply to them as well. All old sales info, warranty etc. with our old account number would be null.
 
Old distributor: RD Faulkner, also an outstanding company who got burned covering warranty claims for their dealers instead of Efco. New Distributor EDM (Out of MA, I had to look them up as they don't carry much of anything).

Obviously Efco didn't tell me that having to re-apply with corporate was to clear out my warranty. It would be normal for a new credit app with the new distributor, EDM. But, Efco wants us to re-apply to them as well. All old sales info, warranty etc. with our old account number would be null.

Oh yes, I forgot about Faulkner handling NE. Good folks who have been around for a long time. First they got screwed by Dolmar, and now by EFCO.

But the warranty agreement is between EFCO and the consumer and it still has to be honored one way or the other. I'd press them on this issue and ask both EFCO and EDM about how they will address unpaid warranty claims that are still outstanding. EDM is a fading star of it's own as they have lost some important lines the last couple of years. If Tilton and Faulkner couldn't make EFCO fly, EDM sure isn't the solution.

Ya know, I've been around this stuff for a while and these situations are comical in a sad sort of way. You take a line like Efco, that has been here for ages and has done practically nothing. Handled by a couple or more distributors and never any decent results. So, then they sign up some new distributor. Here's the big question: What the heck is the new distributor going to do different than what the other two did for the past 40 years? They have some great idea that nobody has come up with yet? Gonna turn the line around are they? Why would a distributor even want a line with that history in the first place? It makes you wonder.
 
Oh yes, I forgot about Faulkner handling NE. Good folks who have been around for a long time. First they got screwed by Dolmar, and now by EFCO.

But the warranty agreement is between EFCO and the consumer and it still has to be honored one way or the other. I'd press them on this issue and ask both EFCO and EDM about how they will address unpaid warranty claims that are still outstanding. EDM is a fading star of it's own as they have lost some important lines the last couple of years. If Tilton and Faulkner couldn't make EFCO fly, EDM sure isn't the solution.

Ya know, I've been around this stuff for a while and these situations are comical in a sad sort of way. You take a line like Efco, that has been here for ages and has done practically nothing. Handled by a couple or more distributors and never any decent results. So, then they sign up some new distributor. Here's the big question: What the heck is the new distributor going to do different than what the other two did for the past 40 years? They have some great idea that nobody has come up with yet? Gonna turn the line around are they? Why would a distributor even want a line with that history in the first place? It makes you wonder.

Looks like they feel its time for a color and name change, I don't think they have tried blue yet?
Then they wonder why they can't build market share, it might help if they followed through on their commitments instead of cutting and running every few years.:angry:
 
Wow, that really sucks! I think it's safe to say that if Efco won't support their dealers, they won't support their product. It doesn't matter how good the warranty SEEMS, if the company won't stand behind it. Another brand scratched off the list of upcoming saw purchases.

Thanks for the heads up!

Mike
 
The only time this line did real well for me in my area and others around here was when tilton had them and started the bag it and drag it promo on the the olymypyk 264 saws. Sold a ton of them. Then they got into the name change mode and looks like dist. mode. Good luck.
 
Just a total guess but I suspect they are exiting a market they cannot compete in any longer. Just the inevitable market consolidation given the circumstances. With easy credit drying up sales will be shrinking, at the same time they lack the technology to make a product that meets emissions - Husky has strato and AutoTune so you have to have enough margin to be able to pay them for using it. Stihl can afford that - for now - but the smaller guys will leave.
 
Thanks for posting, I did walk in and ask for the efco products. I have purchaced the largest brush cutter, the non extendable pole saw 27cc and the 132s. Same distributor out of maine but two storefront places. I figured out that the model 50 hedge clipper attachment fits on the pole saw and bought that on line after a/the brick and mortar place was closed on Monday when I stopped by. The chainsaw I figure is more likely to get squished than break due to defect. The chain brake does not work in freezing conditions and all the efco chainsaw manuals (at least the ones I downloaded, the made in italy ones) are missing the part about dropping the bar against the stump/inertia brake. Not sure about warranty work they all diligently filled out cards but if dolmar and Jonsorend are on the shelves I will try and not bother him. I probably will buy something pretty big but no sense until those trees get on the chopping block so thanks about the warning on the largest ones.
 
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Just a total guess but I suspect they are exiting a market they cannot compete in any longer. Just the inevitable market consolidation given the circumstances. With easy credit drying up sales will be shrinking, at the same time they lack the technology to make a product that meets emissions - Husky has strato and AutoTune so you have to have enough margin to be able to pay them for using it. Stihl can afford that - for now - but the smaller guys will leave.

I'll share a little story here. Eight or so years ago when Tilton still had Efco, I was at Tilton's open house in New Albany, IN. which they held at the same time as the Louisville EXPO. We were having a conversation regarding the private labeling of the saws for John Deere and Cub Cadet which was just getting going at that time. Sales under the Olympyk/Efco label had been historically weak. Apparently the feeling from Italy was that they were hopeful those two agreements would get the US volume up to a point where it actually paid to be in the US market. The design and EPA certification costs to play in US are obviously high, and they were looking at the Deere and Cub arrangements to make them more justifiable. As we know, both of those agreements are history and they are left to again fend for themselves. Bouncing around between distributors will only continue the downward spiral. Not paying warranty claims to distributors and then canceling them is a pretty clear indication that the wolves are at the door. Amazon is a venue for dumping product, but hardly a long term business model.

Like I was saying earlier, if a brand was here since the Nixon administration and in all that time they've failed to get their act together, you can figure there's a 99% chance it'll never happen. And you've got to view it in that historical context. If you haven't really been exposed to it, it's easy to say, "Hey, these saws aren't too bad, maybe there's potential for something to happen here." Well, sadly there isn't. There's really nothing new here, and this has already been played out many times over the years.

I don't mean to paint a "screw the little brands" picture here. I've been there myself, and believe me I'm very thankfull that I'm a Husky dealer. But there's a lot of good guys here like Scott, or the guy who asked about SOLO last week, who don't need to learn a painfull lesson with their own money trying to sell a brand that isn't likely to go anywhere.
 
Yeah, I don't think it's a screw the little brands thing at all - it's unfortunate really, but with a shrinking market and the resulting battle for remaining market share, combined with increased development costs, there's bound to be too few chairs when the music stops.
 
Yeah, I don't think it's a screw the little brands thing at all - it's unfortunate really, but with a shrinking market and the resulting battle for remaining market share, combined with increased development costs, there's bound to be too few chairs when the music stops.

There are plenty of small and niche players who are successful and make money in many markets. When the passion is gone or management is detached, and the focus is on short term profits or goals, the product/service suffers and the interests of customers and related parties are ignored.

Efco cans still sell saws through mass market outlets if they have a decent product and a service network. Or they can focus on a dedicated core of loyal users. It's this 'ping-pong' management with brands, and distributors, policies, etc. that makes people nuts.

Philbert
 
So, here is what I think Efco’s current sales strategy is. Sell the majority of the product online or mail order while maintaining the false image of a servicing dealer network. That way before somebody buys their next Efco on Amazon.com or Northern Tool, they can look at the Efco dealer map and see that, “Yes, there is a servicing dealer near me that can provide the warranty work!” Unfortunately, know that dealer near you will probably not provide the warranty work, and if they do Efco will not be paying them to do it.

I grew up on the Olympyks, and have a soft spot for them, but without some friends on this site, finding parts could be a huge problem. The Efco dealer map here shows mostly Menards box stores, and a couple of small dealers who haven't carried the brand in years. I did just check it again before posting, and some of it has been cleaned up, and a couple new dealers I've never dealt with are listed. Even so, I'd be an unhappy homeowner if I'd bought a "premium" saw at a box store and had to call half a dozen places listed as dealers before I found one that would actually work on it. Even as someone that just tinkers on the old ones, it ticks me off.
 
There are plenty of small and niche players who are successful and make money in many markets. When the passion is gone or management is detached, and the focus is on short term profits or goals, the product/service suffers and the interests of customers and related parties are ignored.

Efco cans still sell saws through mass market outlets if they have a decent product and a service network. Or they can focus on a dedicated core of loyal users. It's this 'ping-pong' management with brands, and distributors, policies, etc. that makes people nuts.

Philbert
Looking at an individual company as an indicator of trends is always dicey, as there can always be other unrelated mitigating issues (such as the random incompetence of management, etc.). But I think there are indeed major forces pushing for consolidation at this time, which is driving the consolidation of brands through mergers and acquisitions. And you'll see the effects in marginal smaller brands first.

If you're a small niche player you have to have something special to offer, and when you are in a market like this one that has very high fixed cost overhead associated with product development and certification, it better be darn special to command the price premium you'd need to charge. But chainsaws have been commodity items for decades now, and the only advancements/differentiators of interest in a long time are strato and feedback carbs - and the big guy on the block owns them. Look at something like a 550XP - how the heck is an Efco going to compete with that, let alone command a premium? They don't - their only choice is to get bought out or fail, and Efco doesn't have the technology or a brand name attractive enough to get bought.
 
EFCO and EDM

EDM is in my backyard and we have never really done any business with them, they started as a family power equipment dealer then grew to big to fast and fell apart. Efco will only be with them for a short period, they dont have the manpower to properly support any brand really.
 
I take the point about local distributor. There is only one in Canada, and he's (was?) in Quebec, and before I got my 165, I tried him and his price wasn't competitive with that of a guy in Kamloops who was re-selling from Bailey's. I bought from him the Mak/Dolmar and the 165 but he quit because of the very low margin. The saw is great, the dealer in Quebec, if he's still there, directed to me the so-called rep in Ontario who was useless (the service people he identified for me all said, yes, we do EFCO; no, we will not do warranty work - that was in 2009) and he wants to sell & ship to customers but his prices are the usual Canadian markup (BS, IMHO). If the parts remain available, my 165 will run even after I croak.
 

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