Home Depot

[dummy]

Doesn't surprise me at all, Bird. Our local Cub dealer would never deal on a new mower. Now that Lowe's is selling them, he's lowered his prices to match, not beat though. Makes me wonder what the profit levels used to be.

 

[BrokerBob]

As a Kubota owner I really do apologize for what clearly looks like I'm trying to stir up trouble. That is truly not my intention. I am interested in what everyone has to say because there is always (almost always) a little bit of wisdom behind every post.

I agree with some of the comments that JD would have been crazy not to form this alliance with HD. All of the comments that it will expand their distribution, lower the unit cost of manufacturing, etc., etc. makes perfect sense. Furthermore, with the power of the JD franchise and HD's distribution I would expect that JD lawn tractors will become the dominant brand in the marketplace.

My concern is with the "mom and pop" dealers out there. In spite of the many criticisms shared about dealers: green, orange and blue alike; I think the majority are honest, service-oriented businesses. They are places where you can walk in and get parts and know that the individual behind the counter actually knows how to look up part numbers and identify the correct filter, etc.. You can obtain advice as well as experience on problems to look for. In fact, there is no end to the help and service that we take for granted from a good dealer.

On the other hand, I'm afraid that HD represents the antithesis of the local dealer. If the JD/HD relationship continues with just the 100 series being offered, I would have to acknowledge that it is probably almost a win/win for everyone: JD, HD, JD dealers, and the consumer. On the other hand, if the relationship is so "successful" that HD begins to handle the more "upscale" JD models; then I fear that the many JD dealers will be hurt and the consumer may have missed the wealth of useful information and guidance available through the dealer.

Maybe I'm just whining. I don't even own a JD. I do believe that they manufacture many outstanding and superior products. They have the premier website in the industry. They stand behind their products and have almost global loyalty. I would hate to see a decision like this mark the beginning of the end for suburban JD dealers.

 

[gmason]

Hello y'all, wow, this is a can of worms.IMO.
But, for me I have used/exploited HD liberal return policy and that's one reason why I return to HD to buy many things.
Recently, I purchased a Toro 22" mower, price was no better or worse than the local Ace store, I got it home and mow the yard a few times and noticed fuel leaking from the fuel bowl.
I emailed Toro and was given a short list of who to take it to for service, not HD.
I called the 3 local places for service and was told that it would be 3 weeks to get it back. At the time, I was mowing 2-3 times a week. So I loaded the mower in the truck and went back to HD, took my receipt and mower to the return desk and in less time than it would take to fill the tank with fuel, I was walking out of HD with a brand new mower.

I will not shop at Best Buy, because they shafted me on a defective product that I bought for a Christmas present and it was past their return period.

I've use HD price matching to save several $100 on a number of projects.

Would I buy a 15-25hp tractor from HD, probably not, but then there aren't a lot of service oriented shops around out there anymore. :>(

gary

 

[rocky2]

You're right on their return policy. There is no hassle. After about 2 weeks of use I returned a gas string trimmer because it was leaking from around the exhaust, I couldn't find the receipt, but it was still not an issue. The only problem was the model I bought was out of stock so I had to drop an additional 20 bucks and move up a notch. I don't know how long they honor returns, I assume 30 days.

 

[gusg]

I bought a 25 HP Scotts tractor at Home Depot and took it back after using it once. I liked the looks of the tractor and since it was made by John Deere I figured it couldn't be made that poorly. I also got a free John Deere bagger that sells for $500. I compared it to the John Deere tractors and found many of the same components. It backfired all of the time and that darn cutoff switch on the seat kept cutting the power everytime I would hit some rough ground. I tried to disconnect it but then the tractor wouldn't start.

I saw the same tractor in the garden area three weeks later sitting there and asked about it. They said they sent it out for repair to a John Deere dealer and it won't start. It was going back for more repairs. By the way when they get the tractors back and send them out for repairs they then sell them as refurbished at the same store for 30% less.

I bought a Ford 1100 with a 48" RFM. I am selling that now (I think that it will be sold as of Saturday) and I am having a Kubota B7500 with FEL and 60" MMM delivered on Thursday. I have learned my lesson. Don't try and save some $$$ by getting something that is marginal when you will end up buying what you really need in the end anyway.

 

[kokopelli2]

brokerbob
i really thing that JD will do great at HD but i do not think that they will ever sell higher than maybe the 200 series. take it from me....i work for a manufacturer that sells at depot. we do not sell out higher end stuff there only special order and we keep our super high line only in show rooms. people tend not go to HD to spend $1000's upon $1000's of dollars.

well at least not at most depots...the north ave. store in chicago does carry 3-pt equipment including backhoes!

as for their return policy it is good for as long as you have your recipt for full refund...or you can exchange something without a repceipt as long as you can prove you got it at HD.

 

[Anonymous Poster]

Ahhh, BorkerBob, the Kubota owner who, while always apologizing, seems to spend more time in the JD threads than the orange ones (Bob, are you in the closet? do you need to come out and show us your green).

Anyway, as someone in the Agribusiness/Marketing field, I can assure you that JD will stick with only the 100 series (or similar) at Home Depots. It gets their product to the masses, their dropping the Sabre and Scotts lines, there's no profit in that lower-end due to the high competition - and they're counting on profit when the customer comes back to JD for a bigger tractor next time. Also, service is a no brainer and a big profit maker for dealers on those tractors. $69-$99 tune-ups in the Spring for all those suburbanites is big bucks. Plus, while some may be mowing more - JD's own marketing analysis shows that most 100 series Home Depot purchasers own less than one acre - no real wear and tear there.

 

[tralderman]

If I were the JD dealers I would not sweat too much. As a Cub Cadet dealer who has Lowes and TSC selling the smaller Cub Cadet's very nearby, I have not see a decrease in sales volume at all. In fact I have seen the exact opposite.Consumers are not as ignorant as some may think. They know that their machine WILL inevitably need the service that big box stores do not provide and the independent retailer has repair parts on hand. If they do their shopping they will find out that the prices are the same at the independent dealer (sometimes lower with some gentle persuasion). Independent dealers also offer FREE set-up and delivery. independent dealers will take trade-ins, and independent dealers will sell you the attachments you will need in the future.In my opinion it is smart business for John Deere and Cub Cadet to get in alignment with the big box stores. It attracts name recognition never before available because the big box stores spend millions in advertising. Then, by the time Home Depot and Lowes have figured out that consumers are buing at Independent dealers and decide to end their alliances, John Deere and Cub Cadet will be right there to reap the benefits of all that exposure with an all new base of customers in their pockets.In my (professional) opinion.

 

[BrokerBob]

To BiggD, you raise an interesting point. I think the reason I have entered the JD board is a function of the fact that I have a JD dealer within three (3) miles of my home while the Kubota dealer is quite a bit further. I have become a somewhat regular "browser" and enjoy looking at the inventory. Also, I suspect that I am following JD's products with intense interest because I am certain that sooner or later they will introduce a product which will redefine the market much like the BX did.

I find tralderman's comments particularly interesting. Sometimes we reach a conclusion about something (in this case, the new JD/HD relationship), and we discover that we got it entirely wrong. This may well prove to be the case regarding my initial post. I remember a marketing professor I had in graduate school. His comment was that no business man ever made a decision which he knew to be stupid at the time. JD and HD obviously believe that this new arrangement will be a good one. tralderman has convinced me that he may see the benefits far more clearly than I did!

Thanks.

 

[Anonymous Poster]

While taking a slightly different approach in words, I think tralderman's comments and mine are similar. I say six and he's says half-a-dozen.

The case study everyone in the consumer equipment business looks at in the academic world was done by Harvard Business School graduate students regarding Troy-bilt's entry into the mass market - big-box stores. It's been successful for them on many levels - not all - and has gotten them more brand name recognition, while not noticably reducing the qualitiy assoicated by consumers with thier name.

The big problem Deere recognized in their consumer division through market research was that a Sabre or Scotts "by Deere" instantly gave consumers a feeling of "less than Deere" rather than "Good 'cause associated with Deere" the companies had hoped for.

Thanks for the thick-skin BroberBob - I was giving you a little tongue-in-cheek humor before.