What the Focal ??
06-04-2007, 11:41 AM
#11
50 Watt CAFz'r
Thread Starter
Join Date: Nov 2004
Posts: 313
Good news.....i really like Pat !! He is one of the nicest guys you will ever meet.
Like I said earlier, the info I heard was from a dealer back east, and I stated that it ,may not be factual. So....glad to hear all is well.
Like I said earlier, the info I heard was from a dealer back east, and I stated that it ,may not be factual. So....glad to hear all is well.
06-07-2007, 09:47 AM
#12
50 Watt CAFz'r
Join Date: May 2004
Posts: 467
Originally Posted by mike bisson
But you know the nice thing? At least Focal and Wharfedale are NOT in Future Shop, Best Buy or any other chain... WHEW!
06-08-2007, 10:16 AM
#14
50 Watt CAFz'r
Join Date: May 2004
Posts: 467
Yeah Mike, I have no idea what it's like dealing with both big box stores as well as the independant stores...
06-08-2007, 02:23 PM
#15
Administrator
Join Date: Feb 2006
Posts: 16,855
Originally Posted by mike bisson
....Well they do lead the race to zero, do if the shoe fits.... but I guess you would have to run a business to understand...
I must disagree my friend (just because). One of the big boxes that I worked for showed profits in Mobile Audio of ~47% consistently. That's decent cake.
That's almost as much as distributors make!
From my experience, a smaller indy is much more likely to cut profit to the bone to move items for some cash flow come the end of a slow month.
06-08-2007, 11:38 PM
#17
Really Rob, how could that happen? LOL, Ryan and Paul are right -- there is no race to zero we are imagining it... or we are creating it...
Oh and it is different to run a small store than it is to sell to it... giddy up it is the race to zero... that is why I am independant only.
Oh and it is different to run a small store than it is to sell to it... giddy up it is the race to zero... that is why I am independant only.
06-11-2007, 12:56 AM
#18
50 Watt CAFz'r
Thread Starter
Join Date: Nov 2004
Posts: 313
I did run a small store....and we refused to play the race to zero game...!!
We sold decks at what we wanted to sell them for...or we didn't sell them....period. And it worked.....for the most part.
I could get most "reasonable" customers to pay a little more...than the box store was offering, because I gave them better service /Install whatever.
If I couldn't then I let the guy walk.....unless I could add onto that sale with high margin speakers, wiring, etc.
Generally the items you are referring to are lost leader items...which if a guy wants to buy that deck/amp/speaker from the box store...go for it.
We didn't want him as a customer anyway....generally...because that guy only wants the lowest price and could care less about your store and if you are making a profit or not........so, do you really want to sell to that customer...I think not.
You will never win a price war with a big box retailer....they can afford to sell lost leaders, the small store cant. So why even play that game.
Rob, the fact that you went an bought 4 decks from them, plays right into their hands. They won...you lost !!
That shows their marketing dept...that wow, we sold those lost leaders, it worked...lets do it again....get more guys in the store.
Dont play that game....either switch the customer into something else..or let him buy that deck / whatever there.
My guess is most customers would rather buy from you, than the big box....so dont get caught up in it......okay, you lose the odd customer now and then.....
Focus on the "good" customers that would rather support a local dealer at a fair price...not necessarily the cheapest.
Does it suck that they do that....absolutely, but those stores are averaging 47% margin on car audio gear...so they are selling a 70% kit and harness, a 70% amp witing kit, etc, etc.....and making up for the lost leader that was sold below cost...or at cost.
-It's been happening for the 16 years that I've been in this business....I dont think it's going to change....regardless of what brand or product it is !!
We sold decks at what we wanted to sell them for...or we didn't sell them....period. And it worked.....for the most part.
I could get most "reasonable" customers to pay a little more...than the box store was offering, because I gave them better service /Install whatever.
If I couldn't then I let the guy walk.....unless I could add onto that sale with high margin speakers, wiring, etc.
Generally the items you are referring to are lost leader items...which if a guy wants to buy that deck/amp/speaker from the box store...go for it.
We didn't want him as a customer anyway....generally...because that guy only wants the lowest price and could care less about your store and if you are making a profit or not........so, do you really want to sell to that customer...I think not.
You will never win a price war with a big box retailer....they can afford to sell lost leaders, the small store cant. So why even play that game.
Rob, the fact that you went an bought 4 decks from them, plays right into their hands. They won...you lost !!
That shows their marketing dept...that wow, we sold those lost leaders, it worked...lets do it again....get more guys in the store.
Dont play that game....either switch the customer into something else..or let him buy that deck / whatever there.
My guess is most customers would rather buy from you, than the big box....so dont get caught up in it......okay, you lose the odd customer now and then.....
Focus on the "good" customers that would rather support a local dealer at a fair price...not necessarily the cheapest.
Does it suck that they do that....absolutely, but those stores are averaging 47% margin on car audio gear...so they are selling a 70% kit and harness, a 70% amp witing kit, etc, etc.....and making up for the lost leader that was sold below cost...or at cost.
-It's been happening for the 16 years that I've been in this business....I dont think it's going to change....regardless of what brand or product it is !!
06-11-2007, 05:42 AM
#19
Well, for me I picked them up at $13 each cheaper than my cost, I sat on them for a week until they went off sale. I have now sold every single one of them for $150 each with no issues and no price shopping. If they had more, I would have bought all of them.
I accomplished two things here at the same time. I eliminated the ability of my customer to go and see the product somewhere else, I eliminated my competitors ability to sell those leaders in my marketplace. Effectively, I took them out of the game entirely, I made their customer mine. I made 34 points on each unit and then added the labour and accessories to the deal. I think I won that game solidly Grant.
I accomplished two things here at the same time. I eliminated the ability of my customer to go and see the product somewhere else, I eliminated my competitors ability to sell those leaders in my marketplace. Effectively, I took them out of the game entirely, I made their customer mine. I made 34 points on each unit and then added the labour and accessories to the deal. I think I won that game solidly Grant.
06-11-2007, 10:32 AM
#20
50 Watt CAFz'r
Thread Starter
Join Date: Nov 2004
Posts: 313
Ahhh...yes you did....but you never mentioned that in the previous post!
So what your saying...is it was a good thing that they had them on for so cheap ! > ?
You made extra money off it....!!
So why complain in the first place......!! It enabled you to take them out of the market place, win a customer, and make extra money......so they helped you out, effectively !!
You should be thanking them, not bashing them.
So what your saying...is it was a good thing that they had them on for so cheap ! > ?
You made extra money off it....!!
So why complain in the first place......!! It enabled you to take them out of the market place, win a customer, and make extra money......so they helped you out, effectively !!
You should be thanking them, not bashing them.
Last edited by G-MONEY; 06-11-2007 at 10:34 AM.
