Hearthlist Digest #494 - Sunday, September 17, 2000 RE: Royal, HNG fireplaces, marketing, etc by "Roger Sanders" <[email protected]> Re: Jamestown by "Skip Jackson" <[email protected]>
(back) Subject: RE: Royal, HNG fireplaces, marketing, etc From: "Roger Sanders" <[email protected]> Date: Sun, 17 Sep 2000 13:18:43 -0400 Jeff, In response to your posting on Royal & HNG fireplace marketing problems: You're right, but there's a lot more verses to the old song that you=92re singing. Here are some personal opinions based on years of specialty hearth retailing. HNG (Heat-N-Glo), in our market area has multiple, overlapping specialty hearth and HVAC distributors. They=92ve done this for many years as they=92ve added Royal to their distribution system. As near as I can tell here in Oregon, HNG has set up every possible HVACer, insulation company and any contractor with a pick-up and $500 to be a dealer. That=92s the HNG marketing plan. It's their right. It may not be what we would like or what our local HNG specialty hearth store distributor likes, but that=92s the way it is. HNG seems proud to say that they don=92t sell to Big Boxes. This is a red herring. It's a diversion. Reality is that their multiple, overlapping hearth retailer, HVACer, insulator and builder direct marketing is much worse on specialty retailers than Big Boxes could ever be. HNG needs the fireplace selling process to be: "Ya, I=92ll stick in one of dem gas fireplace puppies for a hundred bucks over cost if you gimme da HVAC (or insulation) job". HNG sells lots more fireplaces this way. HNG is selling commodities, and they need every possible outlet to get the volume. Commodities need volume. HNG certainly has the right to get their =93market share=94, what ever = they mean by that. Hay, let em have it. If we specialty retailers are foolish enough to invest in HNG displays for others to sell off of, it=92s our problem, not theirs. We do look pretty stupid though, don=92t we. HNG isn=92t alone and isn=92t the bad guy in what they are doing, it=92s = just the nature of commodity selling. HNG along with Majestic, Lennox, Superior and others of that ilk are simply marketing commodities and obviously we specialty retailers need to sell them as commodities. If someone wants one, terrific, you stick one in for them. It's wishful thinking, if you think that commodity fireplace manufacturers will change their marketing for us. By the way, we specialty retailers didn=92t build their business, their efficient, multiple, overlapping distribution through many different channels and installers did. Should specialty retailers depend on, build in and promote commodity fireplaces? I suppose, if you have the floor space and you have no competition. More than likely you'll lose the opportunity to sell some more profitable and better quality, non-commodity fireplaces if you show a bunch of commodity fireplaces. Should we try to compete with the: =93I=92ll throw that puppy in for a hundred bucks over cost=94? Forrest Gump=92s mother was right when she = said: =93Stupid is as stupid does.=94 Thankfully, we do have a choice to vote = with our pocket book and promote the non-commodity business. There are now several stove manufacturers that are building darned good fireplaces with good margins and they don't distribute to other channels. Travis/FPX/Avalon, Regency/FPI, Country, Harman, Mendota, Alladin, RSF, Central Fireplace and Kozi Heat to name several. I=92m not sure that I would wait for the situation to, as you say =93evolve=94. I would probably start calling the non-commodity suppliers ASAP. Roger Sanders Fireside Spa & Patio Bachelor Spa & Stove Bend, Oregon
(back) Subject: Re: Jamestown From: "Skip Jackson" <[email protected]> Date: Sun, 17 Sep 2000 14:57:58 -0400 Dear Gang, Jamestown pellet stoves are alive and well in Clearfield Utah. 1-800/456-8607 Skip Jackson Fireside Engineering Cincinnati Ohio