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Originally Posted by redline
what do you mean by de-spec'd?
Are they of lesser quality?
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Yes
HD is not able to lower consumer costs simply through "volume" alone
By the volume of products they sell to consumers, they are able to demand different (cheaper) specs than other retailers
It's what is called "Customer Perceived Value" or CPV
Lets say Porter-Cable has a framing saw, you see it in your local tool shop for...say $189
It's quiet, light, strong, and has a great blade
You shop around a bit and see it in HD for less
It's only $159...what a bargain!
Hold on there partner, here's what happened
HD brass saw the P/C saw and said great, we want to carry that, but we want to charge less than $189
P/C says we can't lower our price to you, it's a great price
Now comes the CPV
Customer Perceived Value
Big Box says well, our average customer won't see the value (extra $) of that magnesium guide...can you make it steel?
Our avg. cust won't perceive the value of those fancy motor bushings, or that fancy blade
Make your saw for us to these new specs and we'll carry your saw
And we'll sell it for $159
If P/C says no, then Big Box won't carry a P/C framing saw
Voila, Home Despot has a de-spec'd P/C saw that looks like the one at the local tool shop
The kicker is, if the local tool shop did carry that saw, it would be $139 because of the cost to them
Right now W*M and HD sell most of the lawnmowers in the U.S.
The Honda engines in those riding mowers are NOT the Honda engines in your landscaper's/groundskeeper's mowers that those guys and girls swear by
They are cheapos with a Honda badge because Honda wanted a piece of the pie
Those JD's are not the same JD's that are down at the local power equipment dealer
Not by a long shot
HD/W*M feels the average HD/W*M lawnmower customer doesn't perceive the value of the little pieces that make a great JD
They just want the name JD and they want it as cheap as possible