cabelas is discontinuing tractor sales

[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.