Husky/Lowes

[Newfie]

RMK,

I don't think quality is an issue with this situation. Lowe's Is not carrying the FULL Husky line. You will not be able to go to Lowe's and buy (or probably even special order) a 3120 or any of the other large pro saws. Husky wants to sell more of its lawn care products and its small consumer saws. This is probably due to the fact that most dealers (and rightly so) don't push these items because their niche market is professionals. Even if I were selling a saw to a homeowner (I'm not a dealer so this is my speculation) I would probably be inclined to sell him one of the smaller pro saws, with the rational of it lasting a lifetime instead of being a throw away.

As for a dealer boycott, those never work. It's the wrong side of the economic equation. Nobody who supports their family by selling Husky is going to stop midsteam and suddenly start pushing another line of saws in hopes of being able to convert their long standing Husky customers, too risky. There are plenty of good saw lines out there but that is not what a lifetime Husky user wants to hear from his local shop.Besides Husky will always find someone to step into the breach and pick up the line. Consumer boycotts are also rarely successful and in this instance there is no incentive for the consumer.

 

[RMK]

The reason boycotts rarely work,is becuase you can never get two people together to stand up against anything. How many dealers out there actually rely on one brand to pay the bills,most carry several brands,they've had to diversify to stay alive.

Any model of husky that lowes sells,is equipment that a small business didn't get to sell and thats money out of their pocket. Regardless of wether its lawn care or saws. If lowes finds that it can sell enough smaller saws,they'll try their hand at pro saws and if the price is right people will buy saws and have the pro shops fix them.

 

[stihltech]

lowes

A few years ago, I had a letter from Poulan that stated the saws bought at the discount store did not have chromed cylinders like the ones at the dealers. Is Husky doing this also?

 

[Cicero]

The thing that you have to remember is that Lowes cannot work and show profit operating off of a 20 percent margin. While a dealer can make a living on 20 percent a national chain would never make it. The expense of handling alone for a national chain is much higher than it is for an individual dealer. Sure their volume is higher but so is their labor and labor expense. I think that most of you would agree that the average noodle head working at home depot or Lowes would never accomplish nearly the same amount of work in a day as us independents.

Numerous other expenses arise such as coporate jets, salaries corporate headquarters, liability and building expenses. Sure they sell much more but the need for profit is still there. Home Depot and Lowes will never be as effcient as a well ran independent. There is much more loss the larger a company gets. Therefore the Home Depot and chain stores really are not much cheaper across the board and the cannot afford to be either. In the short term the could lose money and maybe in specific markets they can afford to lose money, but it is all made up somewhere. That is why Echo, Honda and commonly shared brands are sold for near the same cost as local retailers.

Noone can tell you about the need for profit more than Hugh M Woods, Montgomery Wards or Home Base. All had national buying power all could move large numbers of product and all went out of business.

 

[davefr]

But Sam's Club and Costco thrive making a mere 6-14 pts. margin. Wal-Mart is happy with 20-25 pts.

Originally posted by BIG CICERO
The thing that you have to remember is that Lowes cannot work and show profit operating off of a 20 percent margin. While a dealer can make a living on 20 percent a national chain would never make it. The expense of handling alone for a national chain is much higher than it is for an individual dealer. Sure their volume is higher but so is their labor and labor expense. I think that most of you would agree that the average noodle head working at home depot or Lowes would never accomplish nearly the same amount of work in a day as us independents.

Numerous other expenses arise such as coporate jets, salaries corporate headquarters, liability and building expenses. Sure they sell much more but the need for profit is still there. Home Depot and Lowes will never be as effcient as a well ran independent. There is much more loss the larger a company gets. Therefore the Home Depot and chain stores really are not much cheaper across the board and the cannot afford to be either. In the short term the could lose money and maybe in specific markets they can afford to lose money, but it is all made up somewhere. That is why Echo, Honda and commonly shared brands are sold for near the same cost as local retailers.

Noone can tell you about the need for profit more than Hugh M Woods, Montgomery Wards or Home Base. All had national buying power all could move large numbers of product and all went out of business.

 

[RMK]

With the large stores like lowes,they buy direct from the company and like the post above stated,the company makes short cuts on the product,not to mention a store like lowes orders thousands of saws and gets a good price.
You seldom make money on what you sell,you make money on how you buy and lowes dealing direct will be making more like 40%.

 

[thacket]

Hi Guys,

It doesn't inspire a lot of confidence when I see half of the display models with their chains on backwards. Does anyone know if it will be service only or will there be some sort of warranty exchange program? Thanks.

John

 

[eyolf]

different lines must generate different profit figures at the big box. Some lines are perennial loss leaders...they cost as much in internal labor, merchandizing, etc. as they make...but tghey draw customers in who also drop big bucks on others stuff.

I don't see any bargains of any kind on a lot of the things I look at a HD or Lowe's...fort example, I can get an echo trimmer or leaf blower at the local dealer for the same money...and the dealer will make certain it's set up right, will BS with me for a few minutes, and is actually glad to see me when I need a part later.

But I still look at the stuff with motors on it when I have to take my wife to home depot....