I suppose you saw the news that Stanley /Black and Decker has made an
offer to Newell on Irwin and the subdivisions, like Hanson... etc.
They offered 2 times the amount that it should have gone for.
I think that will hurt Irwin even more as they try to recoup their
Irwin used to be a quality company 60 or so years ago. Not sure now, I
think it's more low end retail.
We all know that Stanley and B&D are not what they were. But the idiot
analysts on Wall Street think that they are a top tool company that can
set Irwin straight, since Newell had no real tool experience. Isn't it
amazing that the analysts don't know that Stanley and B&D have slipped
into trash companies..
Well, if a consumer would pay $40 for a tool you could make for $20, or
for $15, which one would you manufacture? I was speaking to a
crafts-person ("woodworker") who explained to me that his tourist
customers would pay the same thing ($5-$15) for a "piece of junk" he
made in 3 minutes as they would if he put "lots more time" in. He was
assembling them by the dozens with a glue gun as we spoke.
Pricing all depends on your customer and or the customer you are trying
to attract. B&D pretty much does not train sales staff to sell their
product so they can sell at a lower price and this works for them.
Festool builds a premium product and you have to buy from a dedicated
retailer that is knowledgeable.
I build a certain level of quality and would not change that. I DO NOT
want to do any warranty work so putting more into the quality keeps me
from having to deal with problems after delivery. So I would make the
widget with the $20 materials. Cheap sells and so does quality.
Yes, I think you summed it up well. Sometimes "Harbor Freight" is the
The more you care, or need to care, about things like "quality", the
more you may be willing to pay. I use Suave shampoo--what do I
know...lol Like I sometime tell my barber, "You don't prune a dead
tree..." (It's not original but I like it)
birds of a feather flock together
but the question is does this mean that those tools will increase or
decrease in price
increase because now they have limited or removed their competitor
decrease because they still have competition
such as harbor freight
i bet that the prices go up since hf is not in home improvement stores
as far as i know and so that market will see an increase
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