Saying NO to a Wal-Mart Sales Strategy

[Kevykev]

http://money.aol.com/fastco/general/canvas3?id=20060117113809990019

I guess to state it simply: Wal-mart was basically trying "pimp" snapper. Increasing sales by reducing prices 'year to year' while maintaining quality standards.

wow!

Although i respect wal-mart's business i must still say: "Job Well Done Snapper"

[civic95]

Guess we'll see if it works. I rarely see anyone cutting with a snapper these days. Even though they are good mowers, people are always looking for the better deal. Hell, 50% of Americans don't even cut their own grass anymore. So they will need to push their product on lawn cutting services if they are smart.

[AznTraitor]

Lol....my dad bought a sweet ass Snapper riding mower about 12 years ago, that bitch would pop a wheelie if you dumped the clutch! it's still running strong at my Uncle's house.....

but nowadays, you hardly see them anymore....Honda's in the game now, and I've seen alot of those sell.

but I hope Snapper makes a comeback, that little turtle was a pimp.

[MongolPup]

Wow that guys has some balls, losing sales like that.

But he stuck up for himself, and mad props for that.

Heh we have a Toro.

[Kevykev]

Although wal-mart accounted for 20% of their profits, it was a strategy;. The profits would decrease each yeah due to wal-mart's marketing plan (price reductions). Therefore, Snapper yeilded less profits through wal-mart each year.

Rather than sacraficing further profitability by decreasing quality,they just pulled out.

[Julio]

Although wal-mart accounted for 20% of their profits, it was a strategy;. The profits would decrease each yeah due to wal-mart's marketing plan (price reductions). Therefore, Snapper yeilded less profits through wal-mart each year.

Rather than sacraficing further profitability by decreasing quality,they just pulled out.


Sorry that dude is an idiot.

[Kevykev]

^ Actually read into it and you will see that it was actually a smart move.

No whether he increases profits or not, that's strickly up to him.

WM's plan was definately going to jeopardize either quality or the products or profit, possibly BOTH!

[AznTraitor]

Sorry that dude is an idiot.


Kev's right Julio! better that they pulled out, because they were placed next to cheaper models that were more than half the price of a Snapper, and let's face it...alot of Walmart shoppers arent shopping for name brands...so they dont care who they buy as long as they get a deal.

it's a gutsy move to lose 20% of your business, but I dont think it was a horrible one.

[Kevykev]

Exactly

The 20% is price-oriented

While the 80% is more quality/durability based.

Briefly:
Building on the price oriented market will = more sales but lower profits.

You will lose the 80 due to the loss of reliability.

[AznTraitor]

Exactly

The 20% is price-oriented

While the 80% is more quality/durability based.

Briefly:
Building on the price oriented market will = more sales but lower profits.

You will lose the 80 due to the loss of reliability.


right because, people will think if they buy a "Private Label" Snapper, it's just the same as a regular based product and when it breaks or loses that reliablity integrity it once had, that 80% market breaks down completely.

[Kevykev]

Exactly!!!

As far as I'm concerned that 80% is comprised of a more loyal, credible; therefore, stronger market.