Hearthlist Digest #168 - Friday, July 17, 1998 Re: Hearthlist Digest #167 - 07/16/98 by "GLEN PERKINS" <[email protected]> Esclusive products, etc. by "by way of Craig Issod" <[email protected]> Exclusive Products by "Craig Issod" <[email protected]>
(back) Subject: Re: Hearthlist Digest #167 - 07/16/98 From: GLEN PERKINS <[email protected]> Date: Thu, 16 Jul 1998 20:37:53 -0500 Dear Sir: The best business software is Big Business @http://www.bigbusiness.com/. This program was originally a Mac program. They went out of business and a user bought them and open them backup for business. I have used Quicken, Quickbooks,Peachtree MYOB and a few others. Big Business leaves the others in the dust. If you have any questions either reply or call 870-367-6075 Respectfully yours, > Software > by "Daniel W. Hays" <[email protected]> > Software > > >I was wondering what you and your list subrcribers have to think about > >Software for our industry?
(back) Subject: Esclusive products, etc. From: [email protected] (by way of Craig Issod) Date: Fri, 17 Jul 1998 12:50:13 -0500 As a new member of this discussion list I am unsure of the thread of discussion that has happened previously but I am wondering if other members besides myself have encountered the problem of manufacturers and distributors producing so-called exclusive products for the sole marketing by you in your particular market area, but after they have popularized by your energy, the products begin to show up at competitors locations? ASnd if this has been a product what course of action have many of you taken. Also of a concern is the marketing of hearth products when the product shows in local mass merchants and what steps do you take at that point. I have thouight many times that part of the problem in the hearth industry is that too many of us are small players and we only have control of a small piece of the pie./ Possibily if many of us banded together and worked as a team and did joint buying decisions how we could turn the matter of control of the product back to the retiler and away from the distribution and manufacturing sides. I was recently speaking to an old friend who is also in the hearth industry from South Carolina and the same problem is encountered by his business every year. One of hios suggestions is for 20 to 40 strong dealers in different areas of the country to band together in this endeavor. Possibly form a buying co-operative that can control where products are sold. When you start talking in 1000s of product instead of 100s or less, then you begin to take control of the destiny of both the product and the margins under which we all operate. Also this power could extend into other areas, insurance, advertising, and on and on. Is than interest among others to form some type of associaion or alliance for this. An assoaition or alliance intended to make our particular segment of the industry stronger for each of us. One of my competitors has now sold franchises for several years and additionally has multiple stores. To compete with him head to head is next tio an impossibility. Jerry Isenhour The Fire Place / The Chimney Doctor Inc. Concord NC
(back) Subject: Exclusive Products From: Craig Issod <[email protected]> Date: Fri, 17 Jul 1998 13:11:06 -0500 Thanks for the thoughtful post, Jerry, and welcome to the list. There may be some discussion of these topics in the mailing list archives at: http://hearth.com/news/club.html Username:hearth Password: fire As a veteran of 20 years in the retail hearth business, I also have my thoughts: 1. Product name brand is not all that important Yes, despite what some manufacturers would have you believe, it is very possible to prosper in this business with "2nd and 3rd tier" manufacturers. My hearth shop was around for 6 years before we got VC, and we did great. In fact, we drove the local "VC only" retailer out of town. Truth is, there are probably only a few brands (VC and Jotul) in this business that have any "space" in the minds of the man-on-the-street. I know of certain businesses that are the MOST successful retailers in the country..and do not carry VC..and never have. Another truth is that much of the product is very similar to (or exactly) the same as models made years ago. As long as dealers and the public accept these timeless designs, it's a lot cheaper to produce and the profits roll in. 2. Store Reputation is ALL IMPORTANT This is a very simple idea, but execution is harder. If you simply BE NICE to everyone who calls or comes into your shop, and treat them fairly..then you will be yielding a secret weapon that will have your competitors shaking their heads. 3. Store Location is not that important Our main store is on a side street of a small village, yet does more business per square foot that just about any retail operation anywhere. Other successful hearth businesses I am aware of, including the ultra-successful Wood Heat (Quakertown, PA) and Preston Trading Post (Preston, CT) and others are well off the beaten path. 4. Fiscal Strength is very important Make certain you have access to enough capital to take care of your customers. If the stove in the warehouse is broken, you must have another one to satisfy the customer. You must have enough $$ to advertise and promote. 5. You ARE important to the manufacturers Yes, it is very difficult for hearth manufacturers to get new dealers in today's crowded marketplace. Even if they don't know it, you are important to them. Try to deal with the ones that know it. There have been some suggestions in the past for buying clubs. In fact, there may be one or two operating in the states or Canada...but this requires an good organizer, always difficult to find. As far as Mass Merchants go, it seems that may companies have learned their lessons. VC is actively again promoting the specialty retail (although with less and less territory for each), and I don't know of any of the manufacturers who are real happy about their Mass Merchant forays. My feeling is that this problem self-corrected...at least to a degree. So, anyway, that's my take. I'd love to hear what experiences other are having. ------------------------------------------------------ Craig Issod HearthNet at http://www.hearth.com [email protected] Everything your Hearth Desires ------------------------------------------------------ Buddha says "avoid error" ------------------------------------------------------