Hearthlist Digest #435 - Saturday, April 1, 2000
 
DCS, etc
  by "Roger Sanders" <[email protected]>
 

(back)
Subject: DCS, etc
From: "Roger Sanders" <[email protected]>
Date: Fri, 31 Mar 2000 20:42:58 -0500
 
Tony,
 
This pricing problem ain't nothin new.
 
"What's up" in my opinion is that you're caught in the common 
conflict of trying to promote "commodity" products in a specialty 
retail store. All you can do is either lower your price and go out of 
business, or promote something else.
 
My opinion is that as retailers, we're never on the offense with 
manufacturer's marketing plans, only the defense. When manufacturers 
use multiple, overlapping distribution channels, they are selling 
"commodities" that don't need our, high overhead, specialty retailing
capabilities.
 
The only defense for specialty retailers against "commodity" 
distribution, is finding superior "non-commodity" products to sell. 
There were a lot of them at the HPA EXPO this month.
 
For years DCS has been doing something even worse with their patio 
heaters at Costco. The Costco retail on the DCS patio heater was 
about $100 lower than the wholesale price from our DCS distributor.
 
So what did we do? DCS makes a great grill line but we quit selling 
all their stuff because they ruined our entire patio heater sales and 
installation business. The only move for us was a defensive move. I'm 
sure that DCS has lost much more overall business in our market
than they gained by their Costco program.
 
We try to only promote non-commodity products in our store and let 
all those other distribution outlets beat each other up on price. 
We've always been able to find quality products with unique selling 
features that are marketed as non-commodities and that really need our
well trained sales staff and good customer service.
 
What should you do? I don't know, but we've sure sold the hell out of 
other premium grill brands.
 
> ---------------------------------------------
> Subject: DCS Grills
> From: "tony" <[email protected]>
> Date: Fri, 31 Mar 2000 10:21:59 -0500
>
> What's up with the pricing on these grills?  It seems a mail order
> catalog "Frontgate" sells these  to the public at wholesale prices, that
> is the same as what we pay for them from our distributor.
>
> Example,  24" grill with rotis $799.  How do you compete with this?
> Plus, there is no sales tax to the consumer.
>
> I have no problem with internet sales, mail order, when the prices are
> at or near our retail, but when they are sold  below what we pay for
> them, something is wrong.....
> Tony Palmer