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Old 07-14-2011, 09:34 AM   #16
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I do not want that job-------Not now or ever.
Why not? You certainly couldn't do any worse than the last 3 or 4 presidents we've had!


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Old 07-14-2011, 12:28 PM   #17
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Just a thought, buy a brand name fishing reel from wally world then buy one from a sporting goods store and check out the gears in each of them. I can't say all of them are made different but some of them will have plastic gears. I have wondered if the same is true for the big boxes with their tools. I know some of their building materials is seconds and culls.

One more shot at wally world, they are doing like the dollar stores are doing now. As matter a fact my wife and I saw a dollar store truck unloading at wally world.
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Old 07-14-2011, 02:38 PM   #18
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Major retailers will absolutely sell below cost to draw people into their establishments. It's how the term "Loss Leader" came to be. Wally was/is notorious for it. It is not even very ethical in most cases, but is done sometimes for long periods to drive out competitors particularly on popular items. Most big box stores have shown that a loss leader will return benefits by additional regular sales once the customer is in the door. How many people do you see walk into a big box and walk out with only the special item? Another tactic is the "store exclusive" model. Big Boxes will negotiate with manufacturers for a special model that can only be bought through their stores. They will hold the contract rights to that model so that, for example, a JD123 widget is available "exclusively at Slowes". You can't buy it at JD's own dealers or at Hum Depot. Maybe instead of ball bearings as on other JD products, this one has sleeve bearings to keep the price down, but joe Homeowner doesn't know the difference...... at least not until it breaks and he's trying to get parts. And it happens with a lot more products than most people realize, including power tools. It's the big Box's way of protecting themselves from being undercut by an aggresive independent distributor who might low ball a price to a local mom and pop establishment. Instead, Mom and Pop are forced to sell JD122 models which may be a better product, but at a substantially higher price. Just try to compare TV's and appliances from store to store by model number.

Last edited by Maintenance 6; 07-14-2011 at 02:41 PM.
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Old 07-14-2011, 04:06 PM   #19
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Major retailers will absolutely sell below cost to draw people into their establishments. It's how the term "Loss Leader" came to be. Wally was/is notorious for it.
there was a time when this was a common practice, but I don't believe its the case anymore, especially with the big retailers. They have so much leverage, and there is so much competition, that they can now basically demand the manufacturer to take the hit. Typically when they put an item "on sale" they make a deal with the manufacturer to get a discount for a limited time period, and sometimes it's for the exact amount that was sold. So imagine you supply one of these stores with an item that you sell to them for $70, and they sell it for $99. Your buyer calls you up and says he wants to put it on sale for $79 for fathers day. You guys agree that for the promo period you will reducr your price to $60. After the sale has ended, you will get a spreadsheet showing that 1000 units were sold during that period, and you will have your billing dept issue them a credit for $10,000

As to your point about the different model #'s, you are correct but it's even more involved. Sometimes there are subtle differances like a metal gear in one and a plastic gear in the other, but more often that you might believe, there is NO DIFFERANCE at all, except for the model #. sounds crazy, I know, but it often cost less for them to just slap a new model # and cut profits in exchange for more volume, then it does to source and test a few cost saving components. The big box gets his price point, and the manufacturer can keep selling the same tool at the higher price to the mom-and-pop stores
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Old 07-14-2011, 09:21 PM   #20
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more often that you might believe, there is NO DIFFERANCE at all, except for the model #.
This also makes it easier for folks with price-matching, or price-match-plus 10% of the difference, not to honor their deals. If you JD123HD is on sale at Home Depot for $45, and JD123L is at Loews for $50, despite the fact that they're the same in every respect, Loews doesn't have to give you the thing for $40 plus whatever bonus they offer.

Extremely common in electronics sales. (If you've wondered why digital cameras have model numbers 23 digits long...)
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Old 07-15-2011, 07:23 AM   #21
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You must be careful some of the items big box stores sell may by all outward appearances be the same as the ones you see at supply houses but internally they are not.
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Old 07-15-2011, 07:43 AM   #22
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You must be careful some of the items big box stores sell may by all outward appearances be the same as the ones you see at supply houses but internally they are not.
Good advice, but the opposite is true as well. sometimes supply houses will offer a lesser product to match a Big Box price point

it's not at all uncommon for manufacturers to offer different models of items in their lines, that might look the same on the outside but have different internals. This isn't necassarily done with the intent to confuse or deceive anyone, but might be done as a cost savings, for brand conformity, etc...

If they have the same mfg model #, you can be confident that they are exactly the same regardless of where you buy. But even different model numbers and UPC codes could still be the exact same product, but in different packaging. If you are in doubt call the manufacturer, or compare a parts breakdown if it's available, don't simply take the word a sales person at the big box store OR at the local supply house. They may be telling you what they think or was told is true, but that doesn't mean it is actually accurate information
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Old 07-15-2011, 09:01 AM   #23
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Originally Posted by jlmran View Post
Bostich F28WW Nailer

$199 at big box store. $289 and $299 at two local suppliers. Which of the following could be true?

1. Big box store is taking a loss;
2. Local retailers have a HUGE markup;
Or
3. There are 2 versions or variations of the same model.

Any thoughts on the price variation?
for what it's worth: This tool is available on Amazon as well for $199. I highly doubt they would be willingly taking a loss to get nail business, since it cost a fortune to ship nails and most people will but locally. Tools Plus.com is even cheaper.....
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Old 07-22-2011, 01:05 PM   #24
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Stores Generally have 50-100% markup.
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Old 07-26-2011, 09:33 AM   #25
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Stores Generally have 50-100% markup.
Not on power tools and other price sensative items.

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