Lowes gives Home Depot A gift

Lowes gives Home Depot A gift

Posted in the Lowes Companies Forum

skyridge

Alamogordo, NM

#1 Sep 22, 2012
The past month Home Depot started selling frigidaire, Electrolux and Whirlpool appliances after commisions and spiffs were cut as part of the incentive program. As commisions were cut , Lowes no longer had exclucivity for selling the above appliances. This could mean a 3rd qtr loss again for Lowes of 3-5 % for the appliance sales. Bad Ideas as seen for future sales Lowes cuts back on programs like LEF to stem the future losses, Don,t look for any payouts this year.
nedm

Pembroke, MA

#2 Sep 22, 2012
But there is a back and forth with brands all the time.

When lowes sold cub cadet depot sold john deer
the next year when lowes sold john deer depot sold cub cadet
DMxMD

United States

#3 Sep 23, 2012
This guy is full of it. That has absolutely nothing to do with commissions. Exclusivity is usually worked out on a contractual basis for a certain number of years. Think iPhone and ATT. On top of that it helps major retailers to protect margin by varying different brands and exclusive models so that products are more difficult to compare and price matching isn't possible. I heard the other day that when the sun sets its because god is angry about spiffs and commissions.

Since: Jul 11

Location hidden

#4 Sep 23, 2012
DM is exactly right. Manufacturers cut deals for floor space and time at retailers. Some are image conscious regarding pricing, others just want to move as many units as possible. For example, higher-end golf club manufacturer's don't allow their clubs to be advertised with a discount. Cheapens the brand. Others are a free for all. No manufacturer cares how much or how the retailer's employees get paid. Spiffs were in the interest of moving product, period. They come, they go.
nedm

Pembroke, MA

#5 Sep 23, 2012
I agree. Some of this is actually documented on some CNBC shows as it shows businesses that want to sell on QVC/HSN or Walmart.

There was an HD corporate employee years ago that got caught up in a bribery scandle. Basically they received funds from a company in china to pretty much stuff a companies product into bays. Imagine a reset that doesn't fit right (not that hard :-p).

Ex is also right about the clubs. There are discounters I know that end up with higher ended product that might be slightly damaged. Sometimes even water damage on a shipping box can render a product not sellable by a vendor. So they sell it but cannot advertise they have it by their trade name. They'll blur it out market it out in advertisements.

If you look hard enough in retailers sometimes an exact isle will be all one companies product and might not really change. Nuts and bolts for the most part at lowes are all national product.

Exclusive deals are fairly common in the business world. Ford had a 100+ year relationship with firestone for tires. During the 1990's computers were mostly Intel processors with Windows operating systems while during the 1980's it was mostly Motorola processors.
Not Nedm

Mooresville, NC

#6 Sep 24, 2012
nedm wrote:
I agree. Some of this is actually documented on some CNBC shows as it shows businesses that want to sell on QVC/HSN or Walmart.
There was an HD corporate employee years ago that got caught up in a bribery scandle. Basically they received funds from a company in china to pretty much stuff a companies product into bays. Imagine a reset that doesn't fit right (not that hard :-p).
Ex is also right about the clubs. There are discounters I know that end up with higher ended product that might be slightly damaged. Sometimes even water damage on a shipping box can render a product not sellable by a vendor. So they sell it but cannot advertise they have it by their trade name. They'll blur it out market it out in advertisements.
If you look hard enough in retailers sometimes an exact isle will be all one companies product and might not really change. Nuts and bolts for the most part at lowes are all national product.
Exclusive deals are fairly common in the business world. Ford had a 100+ year relationship with firestone for tires. During the 1990's computers were mostly Intel processors with Windows operating systems while during the 1980's it was mostly Motorola processors.
Please stop. Just stop.

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