Ma and Pop shops

[blis]

That's easy when the grill has a 100% markup to start with, and Car/truck MSRP are fictional, but saws? Hmmm let me knock 20% off... after freight and co-op advertising, I just lost money. No lunch today... and the lights are being shut off.

yeah right, i got 60e discount on my 353 and after that barely HALF of the money is profit to dealer...

 

[Lakeside53]

yeah right, i got 60e discount on my 353 and after that barely HALF of the money is profit to dealer...

You live in another world... there is little margin in OPE here... that's why we pay a fraction of what you do for the same product. I make about $25 on an MS170.. how much discount do you want?

 

[JUDGE1162]

OK dealer come clean what is the mark up on a saw. There must be a good percent when the price between dealers can be a diffrence of 30% so there has to be a good mark up.

Maybe it is just the "walmart effect" more saws the dealer buys lower the cost to the dealer but if you look around for saw prices in most case we are not talking a few dollars diffrence between dealers, we are talking big diffrences in price.

 

[JUDGE1162]

You live in another world... there is little margin in OPE here... that's why we pay a fraction of what you do for the same product. I make about $25 on an MS170.. how much discount do you want?

Lakeside53 on stihl I will believe you because of how stihl markets and sells their saw they tend to sell for the MSRP, no matter where you buy them from. But that I am sure has more to do with a lack of competetion since stihl saw are not sold in box stores and can not be sold mail order or on the web, many dealers will not even tell you their prices on the phone. The only way to shop around is to drive from dealer to dealer so there is not real insentive to cut prices or offer sales.

 

[Lakeside53]

OK dealer come clean what is the mark up on a saw. There must be a good percent when the price between dealers can be a diffrence of 30% so there has to be a good mark up.

Maybe it is just the "walmart effect" more saws the dealer buys lower the cost to the dealer but if you look around for saw prices in most case we are not talking a few dollars diffrence between dealers, we are talking big diffrences in price.

In our case it varies from 18 to 23% (COST to MSRP); some Stihl dealers get a couple of points more, some less.

 

[Lakeside53]

Lakeside53 on stihl I will believe you because of how stihl markets and sells their saw they tend to sell for the MSRP, no matter where you buy them from. But that I am sure has more to do with a lack of competetion since stihl saw are not sold in box stores and can not be sold mail order or on the web, many dealers will not even tell you their prices on the phone. The only way to shop around is to drive from dealer to dealer so there is not real insentive to cut prices or offer sales.

I give prices on a the phone all day long. For the reasons in the prior post (low margins), I quote MSRP unless I know you as a pro customer (and you spend a bunch with me). 90% of our sales are non-discounted. If you think the Stihl dealers are all fat cats, come stand on my side of the counter and make the investment in owning a business...

 

[spacemule]

Good job Spike. We just had a ma and pa verses HD this morning. Man comes in carring a Echo with a broken sprocket and a lil Mac with the chain adjuster snapped off. He wants me to fix both and I had to break the news to him that we don't carry parts for either saw, talk about a sad face. He goes does anyone in town work on these brands, I say not that I know of. He leaves, comes back 30 minutes and guess what. He's now the proud owner of not one but two new Stihls. Just goes to prove the old saying, you can save a penny at first and pay a helluva lot later. Ma and pa thank HD once again for no service, no parts. The customer said he learned his lesson, no more HD saws. Best part was he never asked for one cent off and was smiling going out the door. People should know better than to fool with ma and pa, LOL

Congratulations on the sale Thal. You see, Home Depot doesn't want the niche filled by you. Home Depot caters to the weekend warrior/do it yourselfer. You know, the kind of guy who doesn't give a rat's ass about what saw they're buying, so long as it will cut up their 5 limbs that are in their way, and is cheap. Although I work in the plumbing department, I've sent customers to smaller mom and pop places when they have what we don't carry. The only dealers losing out to box stores are the ones living on borrowed time to begin with.

 

[spacemule]

That's easy when the grill has a 100% markup to start with,

You're under a misconception there, Lake. Our markups average from 5 to 10%. Our largest markup items are the small things you see hanging on clips down the isle. Almost without exception, large items are small markups. We make our money on one thing and one thing only--volume.

 

[JUDGE1162]

I give prices on a the phone all day long. For the reasons in the prior post (low margins), I quote MSRP unless I know you as a pro customer (and you spend a bunch with me). 90% of our sales are non-discounted. If you think the Stihl dealers are all fat cats, come stand on my side of the counter and make the investment in owning a business...

That was not an attack of stihl dealers by any means a bit of an attack on stihl, anytime you set up a product sales with as little competion as possible it cost the buyer more (no sales, no I'll beat any advertised price) but it also cost the dealer in a way, you can not sell over the internet or by mail, how many more customers could you reach if you could sell to anyone not just the people in your local market. The plus to this dealer sales only model is you don't have to worry about being out priced by another dealer in another state, so your prices do not have to be quite so low you can have a 23% mark up on a $500 item that is a good mark up ($115). Since I do run a medium size bussiness (51 employees) I do know a little about what it takes to do bussiness. Most bussiness models say it takes about an 8% mark up on average get to break even (the cost of running the bussiness) so an 18% mark up if fair. On a $500 saw after the cost of bussiness (8%) you make a 10% profit or about $50. So I agree not much room to discount a saw. On the saws with a 23% mark up there could be some room but that is how sales work you have to mark some items up to cover the items you have very small mark ups on.

While I don't own a stihl that seem very fair, things much be much diffrent with husky since it is easy to find 15% to 20% diffrence in prices so there much be a larger mark up or some shops get much better prices than other shops from Husky.

 

[NYH1]

I don't think "box stores" have a big impact on our local dealer anyway's. In my area,

Home Depot sell Poulan, McColloch, Homelite and a few small Echo's.

Walmart sells a few Poulan and Homelite.

Sears sells Craftsman, Poulan Husky 142 and 455 Rancher. Sears is on crack with there Husky prices. They want $399 for the 455 Rancher. I can go to any "Husqvarna full servicing dealer" and get one for $369.

I think Lowe's sells Poulan and Husky 142, 345 and 455 rancher.

Tractor Supply sells Poulan, Husky 142, 345, 350 and 455 Rancher.

You can order one on line if you want but the box stores pretty much only sell throw away's. If you want a Husky 346 XP, 353 or anything larger you're not going to find one in any box store in this area.

 

[JUDGE1162]

The Lowes by me sell the husky 353 and the 359. That is as big as they go but to the non-logger/tree service guy the 359 is a good size saw. You can still do better online for pricing and lowes is not cheap for their chains and lube either, buy online (Bailey's!!!!).

 

[THALL10326]

The problem is most dealers do adjust prices, so if it is a practice in the bussiness then why would you get upset when someone asks. Like it or not a local dealer is a place where people expect the price to be flexible. Most people do not expect the prices to change at the local supermarket, your right but now make that the local farmers market and people do expect prices to change.

There are just places that the price tag is just a place to start, would you walk into a car dealer and pay the "price tag on the car or truck" NO, I am sure none of you just walk in and say yes I think $30,000 is a good price where do I sign, no you go what can you do how about $28K the dealer say how about $29K and along the way you come to a deal. Like it or not most people expect the same thing in a power equipment dealership. And yes the same people would never think of walking into Lowes or HD and asking for a lower price, but a few do and at times it works. I saw a guy get 20% off a grill just by asking the manager if they would knock a few bucks off to get rid of the grill before the winter. So even in the big box stores prices can be flexible.

Your right somewhat. The price can be dickered on and is alot of times but a 400.00 saw is not a 30,000 car. That being said let me ask ya a question. If you see a saw on a rack that retails for say 400.00 and you want what you think is a fair discount. What would you consider a fair discount? I ask because alot of times I cut right to the chase and merely say what are you willing to pay for that 400.00 list price saw. I've gotton replies low as no more than 275.00 and some as high as I'll give ya 350.00 for it. So tell me what would you feel is a fair discount and then I'll tell ya whether we got a deal..

 

[spacemule]

Your right somewhat. The price can be dickered on and is alot of times but a 400.00 saw is not a 30,000 car. That being said let me ask ya a question. If you see a saw on a rack that retails for say 400.00 and you want what you think is a fair discount. What would you consider a fair discount? I ask because alot of times I cut right to the chase and merely say what are you willing to pay for that 400.00 list price saw. I've gotton replies low as no more than 275.00 and some as high as I'll give ya 350.00 for it. So tell me what would you feel is a fair discount and then I'll tell ya whether we got a deal..

I'll pay full list if you'll come and cut the wood.

 

[rahtreelimbs]

Your right somewhat. The price can be dickered on and is alot of times but a 400.00 saw is not a 30,000 car. That being said let me ask ya a question. If you see a saw on a rack that retails for say 400.00 and you want what you think is a fair discount. What would you consider a fair discount? I ask because alot of times I cut right to the chase and merely say what are you willing to pay for that 400.00 list price saw. I've gotton replies low as no more than 275.00 and some as high as I'll give ya 350.00 for it. So tell me what would you feel is a fair discount and then I'll tell ya whether we got a deal..

Tom in this instance I would think that maybe $10 or $20 off of the $400 price would be acceptable.

I just bought a 2 month old 200T in real good shape. This dealer I have dealt with for the better part of 10 yrs. and it is a real Ma amd Pa shop.

The shop is bult out of several mobile homes.

Anyhoo...........on that 200T the owner told me $400. I asked if that was the best she could do. A little looking at what the saw would cost her new she came down to $375 and I took it. I just asked and didn't beat her up over it!!!

I would have paid the $400 but I saw no harm in exercising my rights as a consumer!!!

 

[NYH1]

If you see a saw on a rack that retails for say 400.00 and you want what you think is a fair discount. What would you consider a fair discount?

$395 and many years of GOOD PROMPT service sounds like a GREAT deal to me!

 

[elmnut]

I'm going to buy a new Husky 353. I probably won't get it until Spring. Pretty much done cutting this year.

I can order this saw on-line with a 16 inch bar and two extra chains for $349 plus shipping and NO tax!

I can buy the saw from one of my local dealers that has been GREAT to me so far for $389 plus tax, no extra chains.

I'm buying it from the dealer. Like I said this guy has been great to me. I feel it's worth the extra money to buy it from a guy that wants my business and will take care of me later on down the road. This dealer sells Stihl, Husqvarna and Jonsered. This shop has been in business since 1965. The guy I deal with is younger and hopefully will be in business for many years to come! He has no brand loyalty. He doesn't tell you what you want to hear to make a sale. He tells you the truth then stands behind you!

I do buy some shooting stuff online. I can get Speer Gold Dot's locally from Gander Mountain (which put a lot of mom and pop gun shops out of business) for my 357 Sig for $17 plus tax per 20 round box. I can order them online for $15 per 50 round box plus shipping which isn't much. I'd be stupid to pay TWICE as much for the same thing!

Gotta be House Trucking in Central Square, the best!

 

[NYH1]

Gotta be House Trucking in Central Square, the best!

Yes it is and YES THEY ARE! GREAT people up there! :rockn:

 

[sedanman]

Actually, they do. MOST grocery stores sell milk at cost or a slight loss. It's a loss leader, designed to get people into the stores.

Small convenience stores or Momn Pops are the exception, of course.



Just yanking your chain, sedanman. Good argument, but bad example.

But thet NEVER drop the price even more because you are a "good" customer. do they? Their price is the SAME for everyone, no matter how much milk they have ever bought. It's a fine example IMHO.

 

[THALL10326]

I'll pay full list if you'll come and cut the wood.

Cool , your full list price is $4000.00, see ya tomorrow,LOL

 

[THALL10326]

Tom in this instance I would think that maybe $10 or $20 off of the $400 price would be acceptable.

I just bought a 2 month old 200T in real good shape. This dealer I have dealt with for the better part of 10 yrs. and it is a real Ma amd Pa shop.

The shop is bult out of several mobile homes.

Anyhoo...........on that 200T the owner told me $400. I asked if that was the best she could do. A little looking at what the saw would cost her new she came down to $375 and I took it. I just asked and didn't beat her up over it!!!

I would have paid the $400 but I saw no harm in exercising my rights as a consumer!!!

Rich I could deal with you, your reasonable. Those that want a $100.00 off or $75.00 off always get the same answer, NOPE. I had a man come in a few weeks ago and bluntly tell me I'll give you $30.00 over cost on that $600.00 HT101 pole prunner. I said ya will, well thats mighty nice of ya. He gives me the old I'll pay you cash right now. He still had his cash the last time I saw him and I've sold that pole prunner along with a few others at full list. Some customers are totally unreasonable and so tight they squeeeeeeeeeeeeeeeeeeek when they walk,lolol