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Unread 09-28-2006, 04:09 PM
dante's Avatar
dante dante is offline
Senior Zero Turn Mower
Join Date: Sep 2006
Location: Warren,Ohio
Posts: 452
Default Adequate Margins for OPE Professionals

Have OPE manufacturers lost sight of servicing dealers needs concerning equipment margins? I applaud Stihl, we make a minimum of 20% margin on promotional equipment and up to 28% on the rest.An OPE professional must make at least that 20%. Stihl has done an outstanding job when it comes to dealer margins and exclusivity. State of the art displays and superior merchandising has guaranteed double digit growth the last 13 years .One will not find Stihl products in Home Depot and Lowes. No service,no product it is that simple. Why are so many other manufactures struggling with mass distribution? The ones that cater to the mass channel are watching their products devalue themselves. IT is not rocket science, put your products in stores with no product knowlege and even less after sale service, and poor sales will be the result. I've been told that mass distribution is an absolute necessity for some manufactures, but I watch them fail time after time. What don't these mass providers understand? History repeats itself doesn't it? Thank-you Stihl, for staying loyal to your OPE professional dealers. I will always stay loyal to you! All great product brands were forged in OPE Professional stores, with servicing dealers. Years ago ,that's what helped to build this great country we call home. What has happened?
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Unread 10-17-2006, 11:59 AM
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cruiser56 cruiser56 is offline
Rear Engine Rider
Join Date: Oct 2006
Location: Cleveland, Ohio
Posts: 38
Default What has happened, indeed!!

Sadly, it's pretty simple to see what has happened. Some of the biggest manufacturers have decided that the brand name we helped build is not as important as short term profits and balance sheet numbers to parade in front of a board of directors. For now they will look like a genius. . . . as time goes by, the brand name will begin to lose its luster, the sales in the Home Depot and Lowes will start to dry up; (after all, MTD has owned the low end market for years and isn't ready to give up without a fight...) and what will they be left with? You can't unbreak an egg. Once the brand name becomes associated with junk, even the premium products suffer. Electronic company Goldstar had to rename their line to LG to overcome the image as a bottom line product after sales in low end retailers started to dry up. Now they are climbing a huge hill fighting Sony, Panasonic and others for the upper end sales. While it may seem impossible today, if nothing changes, John Deere, Toro, Cub Cadet, Husquvarna and others will be in the same position. It doesn't help to have a "throw-away" mentality in society. I don't know how to change it, but I can see the problem.
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Unread 10-18-2006, 12:41 PM
ScottM ScottM is offline
String Trimmer
Join Date: Oct 2006
Location: O'fallon, IL just outside St. Louis
Posts: 6

Continue To Sell Quality Products And Refuse To Sell What Is In The Box Store. There Is Plenty Of Room In The World For Quality Products And Service. Your Best Customer Could Be The One That Has Bought A Mower From A Big Box Store And Sees The Quality And Service Associated With Those Products
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Unread 11-01-2006, 10:49 PM
z28 1980's Avatar
z28 1980 z28 1980 is offline
Mid-Size Mower
Join Date: Sep 2006
Location: Buckeye Land
Posts: 36
Default Quality

Scott, I agree with what you are saying about selling quality, both in the products we are retailing and in the service we provide from our repair departments. The shame of it is our so called business partners, the manufacturers have lost sight of what we have provided for them for so many years, the lure of selling big numbers to big boxes has clouded their view.
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