Can this be true???

Arborist Forum

Help Support Arborist Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
What Husky is not saying in the press release is that selling to the big box stores is killing their bottom line. Yes, having the sales on the front side is very appealing, but they never look at the backside of the vendor agreements.
Having worked at a high level for the world's #1 retailer for 18 years I can tell you that every saw that is returned for whatever reason is credited to the seller plus freight and handling fees back to the mfg. At W-M a lot of times we would put a defective allowance in that represented the average return % for that type product industry wide. Say it was 3% we would deduct that off every check until it hit a set number both the buyer and seller agreed on, say 5 million. If it exceeded 5 million we would just deduct 100% of the selling cost of the product x #of defective units right off their check plus handling and shipping guaranteeing W-M would get every penny of their money. I've seen alot of good companies go blind over the initial sales number and never consider what can happen on the backside, many go broke. Lowes, Depot and TSC everyone in the retail business operates the same way when they are big enough to leverage their volume.
Husky absolutely screwed the pooch when they made the decision to go "big box". I've seen people buy saws after storms use the hell out of them for a week and bring them back saying they are defective. Little Suzy at the service desk doesn't have a clue, she just sends it back to claims to be returned to the vendor. If they try that on ole Thall he sends their azz packing out the door. If they don't fix their marketing and their distrobution philosophy unfortunately they will continue to flounder, it's not a issue with the quality today, but saddles with less profits they will eventually start cutting corners and it will become an issue down the road, R&D will suffer, new models will be slower to introduction, Stihl has to be licking their chops.
 
Husky retail position

UNfortunately , you are right. Is there any hope of Husky figuring out they made a mistake?
 
STIHL is the Number One Selling Brand of Handheld Outdoor Power Equipment in AmericaMajor Milestone a Historic First for the Company
Release Date: June 2010

Press Inquiries:
Anita Gambill
(757) 486-9151 office


VIRGINIA BEACH, Va. – STIHL, already recognized as the number one selling brand of chain saws and cut-off machines worldwide, reached another milestone as the number one selling brand of gasoline-powered handheld outdoor power equipment in America. Officials at STIHL Inc. announced today that syndicated commercial and independent consumer research of 2009 U.S. sales and market share data shows that the brand has extended its market leading position to handheld outdoor power equipment for consumers and professional landscapers.

“The STIHL story is filled with many firsts which have earned the company numerous marketplace recognitions over the years,” said Fred Whyte, president of STIHL Inc. “This latest achievement is especially gratifying and affirms our dedication to manufacturing excellence and our unique distribution strategy.”

STIHL Inc., founded by ANDREAS STIHL AG & Co. KG in 1974, is based in Virginia Beach Va., and manufactures over 180 different model variations of gasoline-powered handheld outdoor power equipment products for sale in the U.S. and around the world.

Becoming the number one selling brand is especially significant given that almost every one of STIHL’s competitors in the consumer and professional handheld outdoor power equipment market utilize mass merchants to sell their product. STIHL’s distribution network in the U.S. includes 12 distributors and more than 8,000 independent servicing dealers and its decision to forgo the mass merchant retail channels and distribute product only through servicing dealers was featured in the recently released book “The Distribution Trap: Keeping Your Innovations from Becoming Commodities” by Dr. Andrew Thomas and Dr. Timothy Wilkinson.

"Number one selling brand" is based on syndicated Irwin Broh Research (commercial landscapers) as well as independent consumer research of 2009 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers.

For more information, please visit http://www.stihlusa.com/one.


About STIHL Inc.:
STIHL Inc. manufactures the number one selling brand of gasoline-powered handheld outdoor power equipment in America for homeowners and professional landscapers*, as well as the number one selling brand of chain saws in the world. STIHL products are sold through servicing power equipment retailers from coast to coast— not mass merchants. STIHL products sold through U.S. STIHL dealers are for distribution in the United States only. For more information or for the name a local STIHL retailer, call toll free 1-800-GO STIHL (1-800-467-8445) or visit the dealer locator on the STIHL Web site at www.stihlusa.com.

*"Number one selling brand" is based on syndicated Irwin Broh Research (commercial landscapers) as well as independent consumer research of 2009 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers.

STIHL is pleased to support the work of the Tree Research and Education Endowment Fund (TREE Fund), International Society of Arboriculture (ISA), the Tree Care Industry Association (TCIA), National FFA, Professional Landcare Network (PLANET), the American Tree Farm System (ATFS), and the National Association of State Park Directors.

====================================================

I think Thall has posted this before.


TT
 
Having set on both sides of the table, being a buyer and divisional replenishment manager and as a Nat'l Account Mngr for a vendor it is a struggle that is old as retail itself. You have the sales department that only sees the raw gross sales and units flying out the door, it's what their pay and bonuses are based off of vs. the bean counters that actually see the returns and bottom line. Unfortunately sales usually wins the battle until it's too late to recover. I'd rather have less sales at a acceptable margin. Most companies are on razor thin margins these days because of the global (china) mfg. I hope Husky survives, competition makes everyone better.
 
Having set on both sides of the table, being a buyer and divisional replenishment manager and as a Nat'l Account Mngr for a vendor it is a struggle that is old as retail itself. You have the sales department that only sees the raw gross sales and units flying out the door, it's what their pay and bonuses are based off of vs. the bean counters that actually see the returns and bottom line. Unfortunately sales usually wins the battle until it's too late to recover. I'd rather have less sales at a acceptable margin. Most companies are on razor thin margins these days because of the global (china) mfg. I hope Husky survives, competition makes everyone better.

:agree2: 110%

No if's and's or but's about it, Stihl and Husky are the 2 top Dogs (In U.S. anyway)
IMO, If one of them would fall R&D would really drop off of the one left standing.
When Husky dropped on-line sales of pro saws I think they had seen
the mistake. Am sure it give them a shot in the arm at first, but in my area
the small dealers felt they had been stabbed in the back.
One dealer said when he worked on a box store or bought on-line saw.
The saw owner was charged full MSRP for parts and no cut of any kind off labor cost.



TT
 
Back
Top