manual
Addicted to ArboristSite
I took Ben's remark as the dealers that he has to deal with.
The new internet policy
- Thread starter spike60
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spike60
Addicted to ArboristSite
Well this has gottn' fun.
My first comment must go to Mr. Walker and his 95% remark, which validates an earlier assertion of mine that he is indeed better off conducting business on his computer, rather than struggling to interact face to face with other human beings. But how do you expect us to believe that the other 5% actually want to do business with you?
Moving on to more intelligent matters, I doubt there will be a noticable price increase at the average Husky dealer. There is still plenty of competition out there. The only real change is that the Joe Nicklepinchers of the world will not be able to do an end run around the dealer base and buy a saw from whoever is leading the "whore of the month" contest.
Discounting saws over the internet isn't exactly a complicated business model. Any dope can set up a web site and ship out saws all day long for $20 over cost. It would seem that Husky has decided that, in the big picture, this practice was doing more harm than good, so they have decided to address it. Some have suggested that it will cost them business, but you can be sure that this decision was well researched. Obviously, the conclusion must have been that this would be better for their business.
What really led to this? One of the few guys here who has been on the right track all along is Manual. Not long ago, it was very common to find Husky and Stihl in the same store. While Stihl has remained loyal to dealers, Husky, in an effort to grow market share, allowed anyone and everyone to sell the product, anyway they wished. This "free for all" type of policy obviously alienated many dealers, and Stihl, seeing the opening, astutely came out with their Elite program for dealers that would eliminate other lines and go exclusive Stihl. But loyalty is always a two way street, and as dealers felt that Husky was abandoning them, they in turn pulled back from Husky. With these new policies, Husky is re-commiting themselves to their stocking dealers, and we certainly welcome that change in attitude.
That they will still have some product in the box stores is not a big deal to me for a couple of reasons. Those stores only sell a few of the lower priced homeowner saws, and as some of you know, my store caters to the more serious equipment user.
The requirement to stock other types of equipment to get the best deal is not as bad as some have portrayed. 6 tractors, 10 push mowers, and 2 whole generators! Not that big a deal. I'm sure that Stihl pushes pretty hard for dealers to stock non saw products. They also push pretty hard on their bars and chain, and I believe tie the use of their chain to the dealers liability coverage. But their Elite program is itself maybe the most restrictive policy of all in that in order to get the best deal, a dealer isn't even allowed to carry a competing line. So, it's pretty unfair to pick on Husky for forcing dealers to take unwanted product.
We had a moron call us this week asking about a snow blower for a cub cadet tractor. He actually had the balls to ask if he could buy direct and eliminate the middle man. (Us) If any of you identify with THAT customer, then I take great pleasure in your current anguish over this policy. And to quote Ralph Kramden; "Har har harrrrrrrrrrrdy har har!!!"
But I do feel bad for some of you decent guys who's local dealer is an idiot, and I hope that you will be able to find one who will treat you honestly and competently like us, and most of the dealers here on the site.
It probably wouldn't be appropreate for me to post the letter from Husky, so I'm not going to. But a lot of thought and reasearch went into the implications of these policies, from a legal as well as a marketing perspective.
Things are going to be different now.
My first comment must go to Mr. Walker and his 95% remark, which validates an earlier assertion of mine that he is indeed better off conducting business on his computer, rather than struggling to interact face to face with other human beings. But how do you expect us to believe that the other 5% actually want to do business with you?
Moving on to more intelligent matters, I doubt there will be a noticable price increase at the average Husky dealer. There is still plenty of competition out there. The only real change is that the Joe Nicklepinchers of the world will not be able to do an end run around the dealer base and buy a saw from whoever is leading the "whore of the month" contest.
Discounting saws over the internet isn't exactly a complicated business model. Any dope can set up a web site and ship out saws all day long for $20 over cost. It would seem that Husky has decided that, in the big picture, this practice was doing more harm than good, so they have decided to address it. Some have suggested that it will cost them business, but you can be sure that this decision was well researched. Obviously, the conclusion must have been that this would be better for their business.
What really led to this? One of the few guys here who has been on the right track all along is Manual. Not long ago, it was very common to find Husky and Stihl in the same store. While Stihl has remained loyal to dealers, Husky, in an effort to grow market share, allowed anyone and everyone to sell the product, anyway they wished. This "free for all" type of policy obviously alienated many dealers, and Stihl, seeing the opening, astutely came out with their Elite program for dealers that would eliminate other lines and go exclusive Stihl. But loyalty is always a two way street, and as dealers felt that Husky was abandoning them, they in turn pulled back from Husky. With these new policies, Husky is re-commiting themselves to their stocking dealers, and we certainly welcome that change in attitude.
That they will still have some product in the box stores is not a big deal to me for a couple of reasons. Those stores only sell a few of the lower priced homeowner saws, and as some of you know, my store caters to the more serious equipment user.
The requirement to stock other types of equipment to get the best deal is not as bad as some have portrayed. 6 tractors, 10 push mowers, and 2 whole generators! Not that big a deal. I'm sure that Stihl pushes pretty hard for dealers to stock non saw products. They also push pretty hard on their bars and chain, and I believe tie the use of their chain to the dealers liability coverage. But their Elite program is itself maybe the most restrictive policy of all in that in order to get the best deal, a dealer isn't even allowed to carry a competing line. So, it's pretty unfair to pick on Husky for forcing dealers to take unwanted product.
We had a moron call us this week asking about a snow blower for a cub cadet tractor. He actually had the balls to ask if he could buy direct and eliminate the middle man. (Us) If any of you identify with THAT customer, then I take great pleasure in your current anguish over this policy. And to quote Ralph Kramden; "Har har harrrrrrrrrrrdy har har!!!"
But I do feel bad for some of you decent guys who's local dealer is an idiot, and I hope that you will be able to find one who will treat you honestly and competently like us, and most of the dealers here on the site.
It probably wouldn't be appropreate for me to post the letter from Husky, so I'm not going to. But a lot of thought and reasearch went into the implications of these policies, from a legal as well as a marketing perspective.
Things are going to be different now.
PES+
Addicted to ArboristSite
"Things are going to be different now."
I am not a betting man unless it is a sure thing
But I will take that bet
I am not a betting man unless it is a sure thing
But I will take that bet
PES+
Addicted to ArboristSite
"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee ......... that says, fool me once, shame on .........on....... shame on you. Fool me ................... you can't get fooled again."
Jim Mesthene
ArboristSite Operative
I know it's tacky to quote yourself, but is anyone going to address this?
You're only comparing the Internet Idiot with the local Dealer in Shining Armor.
Why shouldn't good dealers like Bailey's be able to serve me anymore?
PES+
Addicted to ArboristSite
Yah know...
I will stop coming off as a whiner and just make this simple statement.
If Husqvarna comes and makes an apology for some of the disasterous policys present and past dealerships had to suffer I will believe that there is a chance.
Otherwise it appears to me to be Business As Usual
I will stop coming off as a whiner and just make this simple statement.
If Husqvarna comes and makes an apology for some of the disasterous policys present and past dealerships had to suffer I will believe that there is a chance.
Otherwise it appears to me to be Business As Usual
THALL10326
The Champ
Manual Ben doesn't "have" to deal with any dealers at all. They don't go to his house and drag him to their shop. Fact is he made a remark over the line and we had alittle fun with it , thats all. I kinda like Ben, he's tuff and he's stubborn and he says his mind. Makes for good conversation. One thing about Ben, he is not boring, thats for dayumm sure...
DOLMARatOs
ArboristSite Operative
I'll address this if I can find the words.
Bailey's is getting a bit of the shaft. It seems that with any large change in business practice some of the good guys get squeezed. Bailey's SHOULD be able to serve your parts and accessories needs via mail order in the future.
This is the case of 100 bad apples and a few good ones. The internet jockeys who were shipping saws by the truckload with a lot overseas, then keeping the serial numbers on file so that they could file a few bogus warranty claims and/or send in for bid assistance with bogus municipal accounts have really spoiled things. Flooding the market with saws might seem great but the real dealers rely on service, parts and new sales to keep their doors open. 20% is a margin that will cover costs of the sale and overhead. A lot of the internet jockeys (not reputable ones like Bailey's etc.) are doing 10X as much volume at 4 or 5 percent and making out like bandits. They have a garage full of saws and ship 'em out by the truckload all day long.
In summation:
Bailey's gets the shaft a little bit but hopefully they will understand that the minority of internet dealers are helping the Husky line while the vast majority are hurting the market for both Husky and their brick and mortar dealer network.
manual
Addicted to ArboristSite
I rest my case........ Thank You..
And thank You Spike60
Yet I don't understand about companies like Baileys.
Are they going to allow them to handle there product in a catalog only sales ?
manual
Addicted to ArboristSite
A true Michigander indeed.
sedanman
Just cut the piano!!
Unless they hand deliver each saw, I'm betting they'll be shut out too. I don't beleive the Norther Tool exeption either until I see it in writing.
Lakeside53
Stihl Wrenching
Just to clarify Spike's last excellent post... Stihl has three tiers of Dealers - The top two being SRR and Elite. The SRR isn't hard to meet, but does require minimum annual purchases, signage, service, training, retail display, advertising etc etc. The Stihl Elite program is less widespread than it may appear... Yes, you do have to agree to carry 100% Stihl on serial numbered handheld units, sell at least 70% stihl chain, bars and accessories, have a Gold Certified Tech on Staff, meet training requirements for all staff (relative to their positions) and all the requirements of the SRR program.
In return, you get an increasing discount (not that much actually) for the first two tiers, co-op on the top two tiers, and the Elite adds "shop rate" for warranty repairs.
The program varies depending on the Stihl area.
As for "stocking" of a full line, Stihl's exact words are "Maintain a commercially reasonable inventory of the full line of Stihl Products including spares and replacement parts"... "Commercially reasonable" being the key - we don't cary some of Stihl products because it simply isn't comercially reasonable to do so... (Lowes, HD, too expensive, etc etc)
In return, you get an increasing discount (not that much actually) for the first two tiers, co-op on the top two tiers, and the Elite adds "shop rate" for warranty repairs.
The program varies depending on the Stihl area.
As for "stocking" of a full line, Stihl's exact words are "Maintain a commercially reasonable inventory of the full line of Stihl Products including spares and replacement parts"... "Commercially reasonable" being the key - we don't cary some of Stihl products because it simply isn't comercially reasonable to do so... (Lowes, HD, too expensive, etc etc)
I left out of the bar post that I said large stihl.......
sedanman
Just cut the piano!!
Bailey's couldn't care less about the brick and mortar guys. This is my opinion and I'll stand by it.
Baileys is a brick and mortar albeit one that has the foresight to conduct business over the net as well as in the traditional manner.
Why should they give a shat other dealers...they are competition.
Why should they give a shat other dealers...they are competition.
spike60
Addicted to ArboristSite
The folks at Baileys are indeed reputable people, who are well liked by their customers. But just because they are good guys doesn't mean that they aren't a major part of this problem.
It's kind of like a gangster movie where one of the guys isn't all that bad, but at the end of the day, he's still a mobster and he wacks somebody.
THALL10326
The Champ
Its ok Ben, life goes on. Thats what I've been trying to tell ya, it isn't that big a deal. Rasing hell over piddly stuff is pointless, fun though,lol
PES+
Addicted to ArboristSite
Don Husko
Alright THAT'S it ...........THAT'S IT
YOU'RE OUT!
and you're gonna hafta start paying ME floor plan charges so nuthin happens to that little saw shop of yours
Alright THAT'S it ...........THAT'S IT
YOU'RE OUT!
and you're gonna hafta start paying ME floor plan charges so nuthin happens to that little saw shop of yours
sedanman
Just cut the piano!!
And they don't want to sell Dolmar to the local folks because walk in traffic is less than 1 percent of their business. Not a brick and mortar, mom and pop attitute if you ask me.
THALL10326
The Champ
They shouldn't Ben, your right. However you know what male loins do to cubs don't you, they kill them, thats the problem. Look at Baileys as the big male lion and the rest of the dealers as the cubs getting killed off. Male lion is soon on his own and gone. I don't think Bailey's can support the Husqvarna on its sales alone. I have seen they're catalog, website and heard nothing but good things about them though. In fact they actually cost me a bar sale few weeks ago. The man tells me I can get a Oregon bar for 11.00 less at Baileys. I guess he ordered it too because I refuse to drop one penny after he said that. He left, I sold several bars throughout the day, no skin off my back....
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