Husky/Lowes

[Nick Romano]

Was at Lowes today and talked to them about who will sevice their Husky products. He said they will have a in house tech for small repairs, but anything major goes to a Husky dealer. He said I need my warranty card. If I was a Husky dealer I would be pissed. Lets see customer goes to lowes to buy the same product that I sell at a lower price and then Husky wants me to service Lowe's customers for them??
Now if I did buy from the local dealer and I need my equipment fixed I'll have to wait longer because he'll have more products to service. I doubt he will be able to give me the same type of service he could before, so I would I want to buy from him instead of Lowes?? Same dealer will be working on it. This seems missed up to me!!

 

[davefr]

This has been a topic with lots of opinions.

I wonder what the Lowes service tech will be like? Maybe they'll promote the $7/hr wheelbarrow assembler to fix chainsaws!! LOL. Let's see he'll look to see if it has gas and the spark plug is connected. If that's OK, than off it goes to the Husquvarna dealer.

If I were the "real" Husky dealer, I'd sure try and squeeze in my most loyal customers ahead of the Lowes crowd. Especially if someone just bought a brand new saw from me. I really think the dealer's should tell Husquvarna that the Lowes warranty work needs to be sent in to Husqvarna's own service centers vs. the local dealers. Husquvarna seems to be screwing the dealers but offering free Vasoline at the same time.

Now Stihl on the otherhand is being loyal to it's dealer network channel, but also letting them down by not providing saws to compete with Husqvarna on a price/performance basis. Stihl also seems to be pretty stingy with dealer margins.

Now Solo, Makita/Dolmar, Shindawa have some very compelling products but they just can't seem to get up to critical mass in their marketing efforts.

 

[Nick Romano]

I agree. I would not return to that Husky dealer if I had to wait in line with the Lowe's customers. I would be like, hey I bought off of you now you sevice me first.

 

[Tony Snyder]

Alternative

If I were to service the saw, the customer would pay my regular rate. If it were something real minor and I wasn't too busy, I might do a little good will work, but that would depend on the attitude of the customer.

Husky has made a mistake on this deal. I believe it will come back to haunt them.

I've heard dealers laugh and explain how they will just make more money, but I really think that that is not the way it will play out in the long run. They are just trying to put a good face on a deal where they have been betrayed.

The Stihl marketing executives must be in high spirits over this.

Its sickening how many good product names have been prostituted.

 

[Dennis]

Snydert has hit the nail upon the head...I do "goodwill" work for all of my customers.....if they buy it from me and need a minor adjustment, or part, or anything....its done "now" and for free...

 

[Mack]

Just another little kick, Lowes gets to choose the models it wants to carry. Husky pushes it's dealers to carry "full line"and cuts their margins if they don't. What about the trained techs? the parts inventory? Who is doing the pre-delivery set up? Likely the same kid that put the chain on backwards. You buy from a box store and you get what you deserve. You have no right to go to a servicing dealer and expect anything but to be put on his list.

 

[sedanman]

A friend of mine is a power equipment dealer (Stihl, Cub Cadet, Lawn Boy etc, not Husky),he currently does repair work for Lowes. A few weeks ago the guy from Lowes called to say he needed his stuff back "right away, fixed or not"( it had been a week!), this was during the spring rush when my friend was already working 12-16 hour days to keep up with his own stuff. BTW, There were 3 snowblowers in the load from Lowes.

 

[seesaw]

The way I understand it is that Lowe's has hand picked one or two dealers per store to do work on ALL the lines they carry (Cub, MTD, Husky...). I think they call them "Alliance Dealers". Lowe's has created access to lines for the alliance dealer and made it stream-lined for those dealers to aquire parts only for those lines they don't currently have in their shop. They pick-up and deliver twice a week. If this guy happens to be your local dealer...you may wait to have your stuff serviced. What are the odds though? One or two dealers per store shouldn't affect most guys. I hear servicing dealers are standing in line to do work for both Lowe's and Home Depot. Talk about loving bench time and being under the thumb or a huge corporation! Most guys went into business for themselves to be their own boss.

 

[tony marks]

hate to be the devils advocate.
but i fully expect the husky prices to go down as soon as the current agreement between lowes and husky runs out.
hope this is not, so but we ll see.

 

[Oxman]

What happens when, 2 years down the line, Husky gets good & hooked on the volume they deliver to Lowes? Lowes says to Husky, "The Singaporean Homelites price went down to $119, and we're going to discontinue your product because they're $179, unless you get them down under $139." Quality will be substituted by volume.

Arboreally yours,
Oxman website link

 

[Mack]

I've watched dealers all around me go out of business after trying to go the service only route. First thing they find is that they can't afford to hire the trained, certified techs. Next, the warranty reimbursement does not allow for a large enough margin to do much more than break even on. Third, any part sold on less than a 50% margin is costing you money to stock, and if you don't stock the parts you will lose the repair business,(people will not wait very long).
If anyone thinks that a box store will bring down prices on wholegoods, they are crazy, all it will do is pressure full service dealer to find other things to do.
I don't think many people realize what it costs to provide the services they demand. Most have no idea how much it costs to maintain an inventory of parts or whole goods, or what it costs to hire and train a good tech, let alone try to keep them on during the slow season so you will have them when you need them. Most good techs have at least two years of school beyond high school, many have four. Not to mention all the service schools and updates they attend each year and the certification exams they take. How about some untrained kid spinning the rivets on that new 3/8 skip tooth chisel on your stump saw? Make you feel safe? How good are those chaps anyhow?? Did he replace the missing chain catcher when he serviced the saw?
How many of you know what a tiered dealer program is? What is the margin on a Husky 372 if you did $25k on this springs program? What is the monthly floor plan rate? How about the workman's comp rate on a shop that is fully equipped for all rebuilds? How about the liability insurance on a full service saw shop?
The full service dealers are the ones that try to provide the service you guys in the trees demand. They are the ones that put in the extra effort to keep your machines making money for you.
Anyone who buys from a box store to beat a few bucks out of a servicing dealer deserves to have their new saw "power tuned" by the same kid who put the chain on backwards!
As to warranty, at a legit dealer, you do not need a sales slip or card for his brands, he can check it with a phone call. You may want to keep this in mind if you purchase on line also. If the selling dealer doesn't register it in your name, you may be out of luck.
I know, I am likely preaching to the choir on this site, but it has been a long day and I needed to vent! I spent over an hour with a guy today who couldn't decide if he wanted an 18 or 20 inch on a 2149, I set up two saws so that he demo both. He left to think about the price, and no, he was not a homeowner type.

 

[Gary N Carter]

Hey Guys, I too thought that Lowes would try and undercut the local dealers but that does not seem to be the case so far. The local Lowes is only around seven miles from Huskys north american headquarters. There are several dealers in the area also. Now get this: Lowes prices are higher!!!!!!!! They are getting a premium for the Husky stuff. Go figure

 

[Newfie]

Is Lowe's even carrying a full Husky Line-up? I was under the impression that there were only 10 -12 products involved and most of them were lawn & garden euipment w/ low end consumer saws?

still not a pretty situation for the real dealers.

 

[DDM]

Our local lowes stores 4 of them dont have any husky yet.

 

[Methoss084]

I wouldn't stress it about this Lowes or Homedepot deal. It won't amount to much, except for a pile of dead saws in the back of the homedepot warehouse. I also thought that this whole thing was only going to involve low end saws anyway. How in hell is a big box store going to be able to make any margin on these saws? The full service dealer doesn't make all that much margin either, the money comes from repairs and service. Big box stores can't give you any service! So how are they going to make any money on this?

HomeDepot will continue to be mainly an Echo showroom.
No offense to Echo dealers.

 

[Tony Snyder]

Methoss084

I always thought that these big outfits were able to buy at a much lower price than we dealers, probably distributor level or lower. They might be able to make 20% selling at dealer cost. Don't know for sure, but always thought that.

I think on one side of the coin for husky is, the volume sales and the showcasing thing, on the other side, there will be some amount of service dissatisfaction, and some alienated servicing dealers.

In a free country they have the legal right to mess up as bad as they want to.

In all of this is probably an opportunity for some of the smaller saw makers that sell to independant dealers. If I were in marketing at Solo, Alpina, Dolmar, Shindiawa, Tanaka, EFCO etc. I would be having salesman knocking on the doors of every independant Husky dealer out there trying to get them to carry another brand. With Stihl trying to control competition and prices, and Husky lighting their name signs with a red lamp , opportunities exist for the rest of the saw makers.

Also, I do not know what others are seeing, but there is a resurgence in saws for the firewood trade. Many rural people are going to these outside wood stoves. Many farmers around here are buying them to heat their toolshed/shops because of the shocking heating cost the past couple of years. Saws may no longer be a declining market in this country.

 

[Dagger]

Lowes margins

..to those who asked how they are gonna make any margins...that is pretty easy to figure out! They buy better!..in fact to quote." Lowes would not bring our product line in untill they were assured of the margin level, well, we couldnt raise the list price, so we simply just had to lower the cost to meet their demands"

The margins are 33% on wholegoods and 40 and 50 on accessories. With an undisclosed volume rebate yearly if goals are met.

Now, all you dealers wonder why you are down to 15% if you dont meet the volume requirements?...The overall margins for the country remain the same for Husqvarna USA division, and Big E's board of directors are very happy.......all the way to the bank.
The servicing dealers wont give up the line so easy, Zerfoss knows this, they have invested in advertising, parts,signage, training, and they have been telling their customers how good this brand is,.....so they will support the extra margin required by the box stores with lower profits of their own. This is certainly nothing new in marketing.

Also..the federal trade act might be an interesting study for you who believe that crap about Husky insuring that the prices wont be cut. Thats is Illegal!...Once a retailer pays for a product from a vendor..the vendor is forbidden to "require" that the product be retailed for any given price...this protection is there for the retailer! That is why we all see the words "suggested retail price"
The supplier can suggest all he wants...but if he enters into a contract that infers any penalties to the retailers for changing that price..they are in violation of federal law!

Any store manager can and will blow out seasonal products when the prime season is passed , and there is inventory left over.
The only way this can be averted, is for the vendor to "buy back" the merchandise. John Deere bought back a couple thousand tractors last fall from home depot to insure retail price integrity.
ASK your Husqvarna rep if he will do this for YOU!

 

[Newfie]

This situation sucks for Husky dealers, but the fact that Lowe's can buy from Husky at a lower price is pretty simple, VOLUME! A chain that size can blow away any volume by even the largest Husky catalog dealers out there. It's a pretty common economic model, no one is TRYING to screw anyone. Husky wants to move more saws and Lowe's provides that vehicle. Sell 100 saws at $100 profit or sell 1000 saws at $50 profit. You do the math. I'm sure Husky would make the same price concessions to any dealer that moves that many saws. Asplundh's contracted price is below my dealers wholesale price!The potential for the dealers to get hurt is there, but I think the jury is still out on this one.

As for the question of servicing, I am of the opinion that the majority of saw users who buy at box retailer:

1. Don't know if the saw is cutting right or not.

2. Don't know that things need cleaning and servicing.

3. Throw it away when it breaks.

Service may be a non-issue on small ticket items.

 

[RMK]

boycott husky

The dealers should tell husky to drop the lowes and homedepot,or they'll drop husky. There are plenty of good brands out there you don't need husky if that's their philosophy. Not to mention any time a company starts producing equipment for large chain stores,quality goes to ????.

 

[WOLF_RIVER_MIKE]

RMK, there's some logic in there somewhere. Welcome aboard. I've been watching you guys from Wyoming. Y'all are gradually becoming stronger, as a group, starting to emass...thinking of overtaking the Canadians... surely not Tennesseeans, there's only three of us, I think. I'm keeping an eye on you guys...