Canadian tire also has huge buying power when it comes down to it! This means they negotiate big discounts on the cost of an item with suppliers/manufacturers because they buy so many more units then the next guy (auto value/rona/home depot/etc) and can sell the product way faster as well. Not to mention that Canadian Tire is the top known "Brand" name in Canada, meaning more people regonize the name and what it stands for then any other retailer and what Brand wouldn/t want to get on board with that kind of pull. Futhermore, Canadian tire runs a very tight turn (sales-to-inventory ratio) and if they can not liquidate old product they seek out discounts form the vendor indicating they will not be able to buy as much of "Next Years Tools" becuase they have to many of "This Years Tools" in stock. No brand wants this, as it will destroy their margin, and upcoming fiscal season. Finally, Canadian tire would be foolish to increase the market cost of any product as this would affect their bottom line until the time that they are able to mark down said product. This would jeoprodize their ability to purchase "in-season" goods that are out performing projected sales targets, therefore being reactionary to the market.
Bottom Line, I wish I had $100 to go an buy that set!!!
Ok first off if you are gonna start talking business................know your crap.
Home depot did 68 billion in sales in 2010 vs CT's 8 billion.............yes that is billion........as in 68,000,000,000 vs 8,000,000,000.
So if you think that CT has more buying power than HD well then la tête dans le cul.
Also if you look at Stanley/BlackandDeckers annual report you will see that they did 8 billion in revenue as well................yup 8,000,000,000................notice a similarity...........that's correct the company that you are saying is concerned that CT will not buy as much of "Next Years Tools" does the same (actually a little bit more as I am rounding to the nearest billion) as its buyer. So given the relative percentage of its annual volume Stanley Black and Decker could give a frack what CT thinks. There contribution to there bottom line is about as much as you contribute to McDonald's bottom line when you upsize your fries.
Inventory turn.............seriously?
C'mon is that a term you learned in university?
Seriously this is a company that has a CB radio on their site as current inventory that was built in 2007 and has been disco`d to the point were the manufacturer does not provide info on it for their website...........Cobra 19DX III.
Don`t get me wrong.................I love me some CT and they have great sales. but to make this about CT having buying power and pushing vendors like Stanley/Black&Decker around............not how it works.................
Simply put.............Stanley had a surplus of these units...........was changing their packaging/branding/marketing and told CT...............if you want to carry next years product then blow these out for us at this $$$$$.
And Stanley/Black&Decker didn`t even try that with Home Depot..................whey...............well I guess at $70 billion (round numbers) Stanley/Black&Decker thought Home Depot couldn`t help them out.
As for adding AutoValue into the mix.................they are a Calgary based company that`s like comparing Shaw Cable to NBC.......................cuz afterall 4 billion is closed to 70 billion.
Before you talk $hit.................make sure your audience doesn`t have a clue.
having said that.................just cuz CT was blowing out old stock for Stanley.........doesn`t mean it isn`t a good product at a good price.
Hmmmph............buying power my arse.
Topic: Insanely cheap tools at Canadian Tire. (Read 7201 times)