cabelas is discontinuing tractor sales

[Jim Timber]

I got a 2 star review on amazon for one of my products because the customer chose to put it on a gun I never intended it to be used on, never advertised it as fitting, and have personally never shot. 2 stars! "Fit and finish were excellent, but it doesn't work on my unsupported application, so I'm gonna poop on your impeccable reputation because I'm a dink." That's the only one under 4 stars I've ever gotten.

A friend of mine who also made his living on gun accessory products said one of his employees once remarked "This job would be great if we didn't have to deal with customers." :laughing:

 

[roadhunter]

Cabela's is an interesting company. I had the pleasure having them as a customer a number of years ago. You have to wonder about a few things regarding Cabela's.

1-Cabela's is in Sidney, Nebraska. A town of 6000+ people. It is in the middle of no where. Denver is a 2 1/2 hour drive away.
-Who chooses to have a career here? Why? How long do they stay?

2-Cabela's believes it does not competes with BassPro Shops. Yes, Cabela's believes that it does not compete with BassPro Shops.
-They believe that their customer base is very loyal and not the same as though that visit a BassPro shop.

3-They started as an order by catalog company. Retail stores are a relatively new venture in the grand scheme of things.

The first factor probably contributed to why they started selling tractors. I hope they stay around long for a while.

People are like cattle. Some live in feed lots (urban) and others are free range (rural). Just because someone chooses to live away from big cities does not mean there is something wrong with them. Sitting in traffic and living close together is not for everyone. Sidney actually has quite a bit of industrial activity besides Cabelas and is relatively easy to get a good job there.

Cabela's is more focused on Western style hunting and Bass Pro is more focused on Southern style hunting IMO. Sure they cross over but the stores are simply different in some ways. Bass Pro is more of a Wal Mart for hunters and Cabelas carries higher end optics, clothing, boots, etc. geared for the hunter who does not sit in a tree stand over a corn feeder. A Good example is Bass Pro or Redhead branded hunting clothing is simply cheap compared to Cabela's in house hunting clothing, boots, etc.. which is meant to compete with higher end manufacturers like Sitka, UA, Kenetrek, etc..

 

[roadhunter]

My thought was they saw how Northern Tool has been doing this for years and figured they could do the same thing. They have also been successful at selling a variety of boats at their stores, so why not tractors? I think their big mistake was in charging more for their version of the tractor then the dealer did. I guess that might have been part of the arrangement so they didn't hurt the existing dealerships, but most people who buy tractors are going to do a little research first and when you find out that the dealership has the same tractor for less money, it's a no brainer to go to the dealership instead.

I agree. I also think the number of people who enjoy going fishing and the number of people who have enough land to plant a food plot are 2 entirely different numbers. Most folks who live in town have no need for food plots and have no land to start with so tractors have little use to them but many have a boat in the yard, garage, or in storage and access to a lake, river, etc to go fishing.

I see Cabela's tractor experiment very similar to the Bobcat tractor experiment. Both thought it looked promising from a financial standpoint but found that imported tractors were not all that profitable in the end and the damage that selling them did to the reputation of the company simply was not worth it. Not to mention the headache of making marine and motorsport mechanics work on tractors. I think Bobcat was slightly different in that they built a reputation building quality equipment and the Daedong tractor was simply a cheap import compared to thier full blown construction equipment. I also suspect that the demand for Cabelas tractors was somewhat regional so some stores were not participating as much as others, I know Bobcat had the same issue with some dealers not wanting to deal with import tractors.

 

[AuburnAlum]

People are like cattle. Some live in feed lots (urban) and others are free range (rural). Just because someone chooses to live away from big cities does not mean there is something wrong with them. Sitting in traffic and living close together is not for everyone. Sidney actually has quite a bit of industrial activity besides Cabelas and is relatively easy to get a good job there.

Cabela's is more focused on Western style hunting and Bass Pro is more focused on Southern style hunting IMO. Sure they cross over but the stores are simply different in some ways. Bass Pro is more of a Wal Mart for hunters and Cabelas carries higher end optics, clothing, boots, etc. geared for the hunter who does not sit in a tree stand over a corn feeder. A Good example is Bass Pro or Redhead branded hunting clothing is simply cheap compared to Cabela's in house hunting clothing, boots, etc.. which is meant to compete with higher end manufacturers like Sitka, UA, Kenetrek, etc..

People are slightly elevated than cattle. We have choice. Sidney is remote. There is other industry supporting Sidney, but it still is a town of a little more than 6000 people and hours drive from anything larger. I have lived in the largest cities in the US and in the world. I now live in a town little over 5000 folks. I left suburbia years ago to live in the country. Executives that move to Sidney are there to take a temporary approach to life living there. Executives that understand the Retail Industry and have experience are hard to come by and I am sure do not last long term. The other employees I have met there are certainly different to say the least. They have an unusual perspective, to the detriment to Cabela's has been my experience.

With regard to Cabela's competing with BassPro, If they are so confident in their customer base why don't Cabela's ever put a store anywhere close to a BassPro Shop?

 

[roadhunter]

People are slightly elevated than cattle. We have choice. Sidney is remote. There is other industry supporting Sidney, but it still is a town of a little more than 6000 people and hours drive from anything larger. I have lived in the largest cities in the US and in the world. I now live in a town little over 5000 folks. I left suburbia years ago to live in the country. Executives that move to Sidney are there to take a temporary approach to life living there. Executives that understand the Retail Industry and have experience are hard to come by and I am sure do not last long term. The other employees I have met there are certainly different to say the least. They have an unusual perspective, to the detriment to Cabela's has been my experience.

With regard to Cabela's competing with BassPro, If they are so confident in their customer base why don't Cabela's ever put a store anywhere close to a BassPro Shop?

LOL. I know there is a Cabelas and Bass Pro in OKC. Is that close enough?

So again you are making it out that people who are "executives" are above living in Sidney because its' rural but the other "employees" are just "different". Sounds to me like you have an agenda against Cabela's and look down upon people who are just "employees" and not "executives".


it's pretty clear looking at thier location maps where they are focused.

 

[Sawyer Rob]

With regard to Cabela's competing with BassPro, If they are so confident in their customer base why don't Cabela's ever put a store anywhere close to a BassPro Shop?

On the other hand, how come they never put a Bass Pro shop next to a Cabelas????

SR

 

[Rock knocker]

Anyone want to comment on the continuing rumors of Bass Pro purchasing Cabela's? I actually don't believe it, I think it's rumor mongering by those who bought Cabela's high, and are now trying to recoup some of their losses.

 

[4570Man]

On the other hand, how come they never put a Bass Pro shop next to a Cabelas???? SR

It would be stupid for either one. There aren't many stores of either one. I'm pretty sure the closest one to me is in Nashville. So instead of building another store right beside of one wouldn't it make better sense to build it somewhere else?

 

[DT86]

On the other hand, how come they never put a Bass Pro shop next to a Cabelas???? SR

Just throwing this out there.

Bass Pro, Bristol Tn
Cabelas, Bristol Va

About 7 miles apart.

 

[DT86]

One thing I had noticed a while back, Tractorhouse was flooded with Cabelas tractors. They seem to have pulled them all off now.

 

[AxleHub]

Anyone want to comment on the continuing rumors of Bass Pro purchasing Cabela's? I actually don't believe it, I think it's rumor mongering by those who bought Cabela's high, and are now trying to recoup some of their losses.

I've read numerous opinions from professionsl analysts regarding BassPro buying Cabelas as well as Dick's buying Cabelas or Gander Mtn. etc.. lets start with facts. The fact is, our economy is not nearly as healthy as your politicians and government claim. As a result, you see an increase in advertising brought on because of a reduction in purchasing per prospect . . in other words . . We have more people but they consume less on average in clothing or optional items or pursuits.

Who would have guessed even 10 years ago that we would see such a big decline in golfing? Or fishing or hunting? Golf courses are dropping like flies because fewer are active as they were a decade ago.

Cabelas doesn't need to sell their operation or credit card businesses . . but certainly some would like them to sell. BassPro has piles of debt and Dick's even more debt and Gander even more. Analysts believe none could debt justify a purchase although they all would certainly like to own Cabelas. Apparently Sydney Nebraska executives and owners have been much more skilled than some would want you to believe.

The problem seems to be that like retail clothing/department stores . . just like sporting goods chains . . all have the vision impairment that you need internet/website/facebook sales AND new fancy elaborate store fronts too. One format often directly competes with their other format and debt builds while sales just maintain or decline profit margins.

And highly insider family owned/turned public businesses are even more challenged as owners/families diversify from success and age. Tractors may have not worked out . . but Cabelas has and a 45 dollar public stock price (triple what it was just 5 years ago) shows it. And we may see a large entity try or succeed in acquiring Cabelas just as Fleet Farm recently sold 75% to such an entity.

But BassPro has its own issues to deal with and it doesn't appear they could leverage nearly close to enough to acquire even half of it much less all of it.

 

[Adam1742]

On the other hand, how come they never put a Bass Pro shop next to a Cabelas???? SR

Here in Moncton, New Brunswick, we have both Cabelas and Bass Pro. Not a big city by any means, population roughly 69,000. The stores opened within 6 months of each other.

 

[Hiltz]

Sorry to get off topic, maybe someone with a business degree could explain. About 20 years ago the town I live in built its first mall. The downtown business's fought it for years but it finally happened. It wasn't long, maybe within the year, that a Home Depot and a Staples came in and built on the adjoining property. Then within a few short months a Lowes and then an Office Max came in within a block of their competitors.
Why do these companies do this? They certainly are not going to have the sales with their competitor right across the street. Is it just to hurt the other guy? Is it for tax reasons? Why wouldn't they find a more profitable market in the area?
Anyone with business experience know why companies do this.

 

[LD1]

Cant speak to the small businesses, but things like lowes, HD, Menards, etc. There is one in about every town with a population over 20k

To build elsewhere would mean in the country. I am sure they would get more business if they were in the town, even if right by their competitor.

And, if you are the lowest priced one, you should have nothing to worry about.

 

[LD1]

Cant speak to the small businesses, but things like lowes, HD, Menards, etc. There is one in about every town with a population over 20k

To build elsewhere would mean in the country. I am sure they would get more business if they were in the town, even if right by their competitor.

And, if you are the lowest priced one, you should have nothing to worry about.

 

[AxleHub]

the town I live in built its first mall. . . . Home Depot and a Staples came in and built on the adjoining property. Then a Lowes and then an Office Max came in within a block of their competitors.
Why do these companies do this? They certainly are not going to have the sales with their competitor right across the street. Is it just to hurt the other guy? Is it for tax reasons? Why wouldn't they find a more profitable market in the area?
Anyone . . . know why companies do this.

Its a very simple principle . . You can get more customers to travel to an area that offers more selection in a close area. In other eords . . . "Make the trip worthwhile".

While you see it as dividing the customer potential . . businesses see it as " getting targetted interest". Some don't realize that Lowe's, HD, and Menards all advertise entirely differently from each other. Look at a flyer for each. Lowe's is full color slick glossy and they advertise "summary categories" which is name brands and broad sections of products. Its the "dream look" and not the pricing specific. HD focuses on appliances, holiday decorating, and tools . . Full color but not the slick look and not general categories. Menards is color on cheap paper and very specific pricing, very specific items and pricing, and tons of rebates. But guess what . . the wealthiest business is Menards . . they have no debt and own more manufacturing suppliers than the others combined and are privately family owned and bigger than you'd guess. They buy land and build on 25% or 50% of it and sell all the rest later on . . just as McDonalds used to do in the good old days. Menards can guarantee quantity flow.

And a Menards customer for nails and plumbing pipe might also look at appliances when they go to look at appliances at HD. But you won't see them built right next to each other . . Each will be a block or two away. Look closely and you may notice thst customers even "look" differently on average. Meanwhile Lowe's likes to be near clothing stores etc. because Lowe's sells "the dream" and that means women.

Now all you need is ONE of the following ( a TSC or Fleet Farm or Farm and Fleet) and you have a party lol.

By the way . . Lowe's typically isn't in areas of less than 100k pop. HD 50k pop and up and Menards 25k pop. and up.

 

[AxleHub]

Now look at Cabelas vs Dicks vs Gander. Cabelas does a ton of customer mailings and a few newspaper ads. Dicks does newdpaper ads, and Gander focuses on cheaper ads and price specific deals. And Cabelas has a big credit card operation and is tied in to Cenex. 3 different styles of selling here too. Dicks is heavily sporting goods clothing and light guns while Cabelas is big on boating, fishing and hunting and products for those areas. Gander seems to be shooting, food/cooking and ammo oriented along with specials. Who has the strongest Internet focus? I'd say Cabelas. And . . like with the other example of home improvement . . each business has a different focus AND a different style of selling/marketing and cudtomet interaction.

 

[Texas Dawg]

Its a very simple principle . . You can get more customers to travel to an area that offers more selection in a close area. In other eords . . . "Make the trip worthwhile".

While you see it as dividing the customer potential . . businesses see it as " getting targetted interest". Some don't realize that Lowe's, HD, and Menards all advertise entirely differently from each other. Look at a flyer for each. Lowe's is full color slick glossy and they advertise "summary categories" which is name brands and broad sections of products. Its the "dream look" and not the pricing specific. HD focuses on appliances, holiday decorating, and tools . . Full color but not the slick look and not general categories. Menards is color on cheap paper and very specific pricing, very specific items and pricing, and tons of rebates. But guess what . . the wealthiest business is Menards . . they have no debt and own more manufacturing suppliers than the others combined and are privately family owned and bigger than you'd guess. They buy land and build on 25% or 50% of it and sell all the rest later on . . just as McDonalds used to do in the good old days. Menards can guarantee quantity flow.

And a Menards customer for nails and plumbing pipe might also look at appliances when they go to look at appliances at HD. But you won't see them built right next to each other . . Each will be a block or two away. Look closely and you may notice thst customers even "look" differently on average. Meanwhile Lowe's likes to be near clothing stores etc. because Lowe's sells "the dream" and that means women.

Now all you need is ONE of the following ( a TSC or Fleet Farm or Farm and Fleet) and you have a party lol.

By the way . . Lowe's typically isn't in areas of less than 100k pop. HD 50k pop and up and Menards 25k pop. and up.

I must have it pretty good here. We have Lowe's, Home Depot, and Tractor Supply all within 1/2 mile radius. Throw in the 3 auto parts stores in that same circle and even in a small town, I don't have to drive too far to get most of what I need (want). Throw in Northern Tool and Harbor Freight that are less than 20 minutes away and it gets really nice.

 

[Hiltz]

Its a very simple principle . . You can get more customers to travel to an area that offers more selection in a close area. In other eords . . . "Make the trip worthwhile".

While you see it as dividing the customer potential . . businesses see it as " getting targetted interest". Some don't realize that Lowe's, HD, and Menards all advertise entirely differently from each other. Look at a flyer for each. Lowe's is full color slick glossy and they advertise "summary categories" which is name brands and broad sections of products. Its the "dream look" and not the pricing specific. HD focuses on appliances, holiday decorating, and tools . . Full color but not the slick look and not general categories. Menards is color on cheap paper and very specific pricing, very specific items and pricing, and tons of rebates. But guess what . . the wealthiest business is Menards . . they have no debt and own more manufacturing suppliers than the others combined and are privately family owned and bigger than you'd guess. They buy land and build on 25% or 50% of it and sell all the rest later on . . just as McDonalds used to do in the good old days. Menards can guarantee quantity flow.

And a Menards customer for nails and plumbing pipe might also look at appliances when they go to look at appliances at HD. But you won't see them built right next to each other . . Each will be a block or two away. Look closely and you may notice thst customers even "look" differently on average. Meanwhile Lowe's likes to be near clothing stores etc. because Lowe's sells "the dream" and that means women.

Now all you need is ONE of the following ( a TSC or Fleet Farm or Farm and Fleet) and you have a party lol.

By the way . . Lowe's typically isn't in areas of less than 100k pop. HD 50k pop and up and Menards 25k pop. and up.

Tks Axle, that make sense. So they are all actually feeding off each other.

 

[AxleHub]

Tks Axle, that make sense. So they are all actually feeding off each other.

Absolutely. Car dealers have done it for decades. Think how much easier it is to get the wife or husband to go along if there is something for them to do too. lol.

If you read my post on other threads . . you'll find when I went to make my final tractor decision 220 miles away . . I took the wife because I had a good idea she'd be highly impressed with the dealer and she'd look at the numerous choices too becaise they have kubota and massey ALL inside and together and clean. She was stunned just as I was surprused how big it was.

So when I refer others to this unique dealer . . I tell them to take the wife or gurlfriend and plan on at least 2 or more hours there with no boredom.

Its alsp why Menards is so profitable on clothing and groceries. And compsnies BEG Menards to take special pricing for rebate products and Menards sells 6 months quantity of those products in 7 or 10 days AND makes big profits on all those sales (40+ % of rebates are nrver mailed or qualify).

Targrt and Shopko and Kmart all sell groceries. Its about getting mulyiple reasons to comr to an area and thrn come to your store (in that order). Until recrntly I knew John Menard was worth a billion dollars or more . . But the other day I found out irs just short of 9 billion. All from a kid in college building a garage for side money and selling the leftover lumber and shingles on Satyrday mornings when all the lumberyards were closed for the weekend.

And . . I've learned that Menards is one of the most skilled evaluators of the coming economy. Absolutely stunning how they sense a tightening coming and start adjusting inventories and methods . . just stunning and way way ahead of their competitors.