New Carvewright corner posting...

[dbfletcher]

Just recieved this in my email and this one blurb caught my eye:

"CarveWright will match any advertised price for a New CarveWright C machine from any authorized dealer.
Present a link or copy of the ad to customer service for verification to receive the price match. Price match is for new CarveWright C machines and accessories only.
Price Matching excludes offers that include shipping charge discounts, gift with purchase, services, financing, bundling of items, free items, pricing errors, items that are limited-quantity, out of stock, open-box, clearance, and refurbished/used."

Personally, I think this is a bad idea. I also run a paintball business on the side, and all of the manufacturers typically have their price just slightly above MAP pricing. This is in an effort to drive business to their authorized dealers. A healthy dealer network helps to insure a products continued success. If LHR start snagging sales away from thier dealers... many of them may not last very long. There will always be those who insist on buying from the manufacturer, which is why LHR definately needs a web presence and an online store..... but they also need to protect ther dealer network.

Just my two cents.

[Digitalwoodshop]

I agree with you on this.... Is it also to encourage dealers to stick to the Suggested Price and not mark them down to move more machines... as LHR will always match the price.... Does LHR really need to do this? Micro Manage the prices? Interesting....

A policy like this had to have been approved all the way at the top? But why do they need to do this?

AL

[brdad]

I'm far from an expert but this looks like they are grasping at straws and looking for maximum profit. High shipping charges, Selling what could be software updates as add-ons ... Can't help but think they run the business intending to make as much as they can off a small number of products and small customer base rather then making a smaller product off a larger number of customers. I just hope this is their (poor?) business practice and that they are not failing, because if they fail most likely our machines will be worthless.

[hess]

I just hope this is their (poor?) business practice and that they are not failing, because if they fail most likely our machines will be worthless.

Kinda like they are anyway? They are great if you keep them just dont try to sell one. Like buying an Edsel. lol

[Frederick_P]

The problem with the business model is that it is essentially a one product company. Other companies may produce a great tool, but it is likely only one of several being manufactured and all have a host of accessories and supplies to feed the coffers. It is kind of a "Catch 22". LHR is a small struggling company with limited resources and so they are trying to capture as much revenue as they can with what they have. They need to either go big or go broke. If I were CEO, I would be looking at other CarveWright products such as a dust collection system, machines to address the industrial market, maybe a larger version of the current machine or other unique products that might catch the imagination of the market such as a CNC lathe. But there is only so much you can do with limited capital and staff. That being said, there is absolutely no excuse for allowing potentially huge markets for their current products to flounder. I have no idea what they have done to market the machine in Mexico or across the pond, but there were many big name tool stores in Canada who were willing to sell the machine to thousands of eager customers but soon dropped the product due to virtually non-existent support and service. The damage done by allowing an incompetent distributor to handle the market will take a great deal of effort to fix. No doubt it is easy to be an armchair critic and not knowing all of the politics and problems involved leaves most of us guessing, but it seems to me from looking from the outside that a consultation with a savvy business consultant may be in order. Perhaps selling shares to LHR to raise capital and to inject some new business acumen into the equation may work. I want LHR to succeed as do all of us who use the machine. It is rare to find a tool or product that elicits such a passionate following. It is not the product that will determine the future of LHR, it is the management of the company that will decide if they become a big player or a footnote in the business world.

My two cents.

[TerryT]

I know that sometimes the governments involved in international trade can be deal breakers. My (real) business is on an international level, although small. We sometimes go to Japan to select our stock and import into the USA for resale. Being in Washington state we are very close neighbors to Canada and could have a very good business relationship with many Canadians. The Canadian government has requirements in place that make it so expensive and time consuming that it is impossible for my company to do business there. We still have many Canadian customers but they must come here. Since we deal with live animals it is different, I know, but LHR may be facing difficulties that we are not aware of. Hopefully they will overcome what ever problems soon. Now the US government is making importation of koi so difficult and expensive that many folks just don't do it anymore.

Way back when Jobs and Wozniak sold their hippy van and started making PC boards in their garage, I had customers coming from Canada to buy printers because they were so much cheaper from me that they could travel to my shop and back with the new printer and it would still be cheaper than buying one in Canada with the import fees, exchange rate, etc.

[Frederick_P]

Terry, you may be right. However the shelves of our tool stores are filled with American products, so there must a solution if this problem exists. Turn to other successful businesses that have solved these problems and learn from what they have done. Americans are among the most resourceful people on the planet. There was no problem selling the product in Canada. The problem was the distributor was incompetent and has damaged the reputation and credibility of the product.

[TerryT]

The problem was the distributor was incompetent and has damaged the reputation and credibility of the product.

And that is going to be a tough one to overcome. One difference I think, between LHR and many other tool manufacturers is probably financial.

[PCW]

This is the first time I can ever recall a company trying to undermine their dealer network.

The thing I really don't understand is why the webmaster can't delete the link to Carvewright.CA on their home website.
I must be missing something because it just seems like such a easy task.