Trying to get local companies to compete

[rbattelle]

So I'm in need of a 1/2 hp single phase TEFC motor. One option is the GE F12E1 (made in Mexico).

The local motor shop has one for $164.

Tractor supply carries the exact same motor for $140.

My preference would be to give the business to the local shop. So I told them if they'll match or beat TSCs price, I'll buy it from them.

They replied that the motor is $164, thank you have a nice day.

So rather than make something, they'll make nothing. I don't get it. It's like the local shop is saying, "we have so much business we don't need yours".

I don't get it. Is TSCs volume discount that big, so that the local motor shop would actually lose money selling it for $140?

It seems like this exact scenario happens every time I try to get these local businesses to match a competitor on an identical item. It's got to the point that I'm starting to think this behavior is the reason "Mom & Pop" businesses are disappearing.

Ryan

 

[rscurtis]

Did TS have it in stock, or would they have to order it? This is one of the reasons WW Grainger is so successful despite their high prices. They have it today, while many lower priced competitors will have to get it.

 

[rbattelle]

TS has it on the shelf right now.

Ryan

 

[DBentley]

I will bet that the local guy would loose money selling it for 140. 00.

 

[kenny61]

If you think the customer service will be better at the local store buy it there. If so that 24 dollars will pay off in the long run. Regarding the price along with the volume discount large corporation will sell certain items at or below cost to get you in the store and make up the difference on other products such as cheaper grade connectors and hardware. Also make sure it is the same exact motor. I have been noticing and hearing the stuff that Home Depot sells is not the same quality as local jobbers

 

[rbattelle]

I can assure you, the motors are absolutely identical. As for customer service, I have no need for customer service on this purchase. I just want to hand over my cash, and walk away with a motor.

DBentley must be right - the local guy would lose money at $140. Which begs the question - how can a local business ever compete successfully with any large retailer?

Maybe the answer is, "they can't". Which is fine with me - survival of the fittest.

Ryan

 

[GaryOwen]

I think it is highly unlikely that the local store would lose money. If they are paying more than $140 for the motor, they would be better off buying it from TSC themselves. They probably just hope some will pay the higher price instead of going back to TSC. I would buy from TSC under the circumstances.

 

[rbattelle]

I think it is highly unlikely that the local store would lose money. If they are paying more than $140 for the motor, they would be better off buying it from TSC themselves. They probably just hope some will pay the higher price instead of going back to TSC. I would buy from TSC under the circumstances.

Ah yes, an excellent point. Which brings me back to my original question - do these people hate me so much that they'd rather make nothing than something?



Indeed, TSC will be getting my business.



Ryan

 

[DBentley]

I would buy it at tsc myself.
But i do feel bad for the local guy
Its not easy trying to compete with the big box stores
They come in and loose $$$$ to do away with the mom and pops.

 

[Loghead]

Lots of local shops have a bad attitude when it comes to dealing with the public, whether you're buying motors , plumbing supplies, or some other item or service.



Most small business owners are realists, so it's possible that the motor shop won't make enough on your purchase to be worth the headache.



I know I always try to support the local guy, but I've run into the same thing, even when I was prepared to spend more.



That brings to mind the time I needed to rent a jackhammer. I called the local tool rental guy, asked him if I could pick it up Saturday morning and have it back by Saturday at 12.

"Sure"...

I went Saturday morning to pick it up and the place is closed. I needed to get the job done, so off to Home Depot I went. Got the jackhammer, for the whole day, ten bucks cheaper. Dealt with a pretty girl in an orange apron who didn't give me a bunch of BS.



Plumbing and electrical contractor hangouts (suppliers)?

"You're not licensed?

Here's a dunce cap for you. You wait in the corner while I have coffee with the pros you should hire. "



I've got your dunce cap for you. You want me to tell you where to put it while you moan about Home Depot?

 

[Missouri Mule]

The box store paid less for the motor. These big stores contract for prices but to the price they have to buy a whole lot of the item.



The local guy isn't going to be able to contract for 10,000 or more motors(example) in a year.



The local has bills to pay like any one else. Do you think local guys should take less, may be you should tell your boss you make to much money and you will take a cut in your pay.



I own and run a small business the stores run ads all the time which are close to my regular prices or a lttle lower. The customers want me to match their price. I just tell them "they been gouging you for 6 weeks then drop the price for a week and you think their giving you deal. My price had been lower for 6 weeks if they want the that price go buy it from them. " I love dealing with bargain basement people. (When I have a better product then the store I charge the same amount or more. )



When a store runs tomatoes on sale and some of my customer go run to buy them then come back and complain how bad the store tomatoes were I just state " If they didn't taste good a $1. 99 a pound what made you think they were going to taste any better at $ 1. 29 a pound.



Support your local businesses!

Complaining about paying a little more.

How many of you go price shopping when you want something for your CTD "got to have its"?

 

[mgoncalves]

I'm one of those evil small business owners as well. Often, I wonder why I do it, it sure as heck isn't to get rich!! The mom and pop stores are likely just frustrated because they can't compete with the large chain stores, and no one seems to understand how supporting a local economy benefits them more in the long run verses saving 10% on a simple part.



I can guarantee you the chain is making more profit off that part than the local shop even with the higher price.

 

[Dieselnut59]

Small business co-owner here too. I always try to shop locally too, even if the price is a little higher. The local small business spends their money locally, trading with other local businesses. Big box stores do NOTHING locally. There are examples (as some of yall mentioned) where it makes sense to get an item from a big store (like if you gotta have it on a weekend), but often, the same "brand" of an item is a "discount" version at the big box stores. Small businesses do not have the purchasing power of the big box places on the items that are identical. The slightly higher price is worth it in the long run when you are helping your local economy and helping keep the local guys in business.

I agree about the so-called "sales". It only means you have been getting screwed before the "sale" price... same if someone quotes you a job, then you negotiate with them and they lower their price. Why did they not give you that price to begin with?

 

[DennyDay]

The local guy probably buys it TCS and sells it to you

 

[rbattelle]

I was hoping to hear from some small business guys! Thank you for responding to this thread, because I'm genuinely interested in finding out what's going on here. I had a feeling maybe TSC was taking advantage of a large volume discount. If so, then basically the motor supplier is screwing the small businesses by not offering them the same rates (or maybe they do but the local shops volume is too low).

I am generally interested in supporting the local economy, but that must be balanced against an unwillingness to pay lots of extra money "just for the heck of it". The local motor shop is charging a 17% premium on the motor just for the privilege of helping them remain employed.

And so I'm in this dilemma, between supporting the little guy and protecting my bottom line. This is really capitalism in action here - competition driving the price lower to the benefit of the consumer.

Now it's easy to say the big box stores do "nothing" for the local economy, but we should remember that they're employing quite a few people. I would suggest that the TSC has more employees than the small motor shop. They are also paying more property taxes (more than the local guy because his land area is much smaller and in a cheaper part of the city). Their sales, which are probably larger volume overall, are producing tax revenue for the county. Besides which, I live here and support the local economy by shelling out a fortune in property taxes, sales taxes, motor vehicle taxes, parking taxes, etc.

It's got to the point that the only local guys I support regularly are the surplus dealers and services companies, primarily because they provide me with goods and services that are not available elsewhere.

But when it comes to common retail items, it seems like the little guys have no chance against the behemoths. I have a tremendous respect for these small business owners - Lord knows I don't have the intestinal fortitude to compete in this environment.

So Missouri Mule, mgoncalves, and Diselnut59, do you mind saying what business you're in?

Ryan

 

[Dieselnut59]

What I meant about the small places helping the local economy more is that they often put their money in a local bank, buy their business supplies (office supplies, cleaning supplies and sometimes even inventory) locally. i know that is how we run. We buy from those who buy from us. we have a forklift/material handling equipment business. Started in 1999, now employ 8 people.

 

[Missouri Mule]

I'm in the retail produce business (Fresh fruit and vegetables) I worked for a food /drug store chain for 9. 5 years (not in the produce dept). I employ my Mother for now.

I do buy my produce in two cities that are 75 and 100 miles away from my business that is where the best selection and prices are. But I buy supplies fuel up, and eat lunch at local businesses and chains stores in my area.



A lot of times the manufacture give discounts through their brokers a long time before (4 weeks) the store puts the item on sale.



In most states the law is a wholesaler has to offer the same price to everyone but it comes with a number, how many you have to by to get the price.

Such has a beer vendor/soft drink vendor will offer a 100 cases of certain brand beer/soft drink for a set price to a chain store(per store), they also have to give that offer to the smaller stores but usually the smaller stores can't afford to buy that many or does not have the space for that many.



It tough for the small business owner unless they specailize in something the chain/box store do not offer. Like Fresh Produce!

 

[pullya]

I'm just a consumer, but ya, I price shop. I wanna know who has what I need, where are they located, what the price is, what they know about the item, what type of service do they offer and what happens if I want to bring it back if I have problems and what type of reputation do they have. I have gone to big box stores before and the employees know NOTHING about what they are selling(if you can find someone to wait on you and answer your questions) and if you have a problem with the purchase you have to deal with the manufacture not the store, however their prices are a little cheaper. Sometimes the extra knowledge and the way local businesses treat people help even things out---sometimes not. If I end up with a smart azz teenager that doesn't know squat and doesn't know how to give you change without the register telling him, then ya, I'm going somewhere else no matter if it's a big box store or some local business. If you don't treat people right, I don't care who or what you are, big box store or Mom and Pop business, you going down to tubes!!!!! IMO---Rant done!!!!

Jay

 

[mgoncalves]

I have an HVAC business, three employees. For the most part we are not affected by chain stores because we have recently changed our policy to not sell parts only. I got tired of being told I was trying to rip people off when they can find the part on line for 10% less, never mind the fact that it costs me money to stock parts in the middle of nowhere.



I am friends with several retail business owners in the area, they all have the same complaint. No one will work for them without higher wages, insurance, and paid vacation, but the same people will drive 200 miles to shop because they can save 10%. Most of the owners here understand how our dollars turn over in this micro economy. I will only buy something out of town if it's not available here. I buy my trucks here, the salesman and owners use us for work. I buy auto parts here, the owner has me do maintenance plans on his properties.



In short, I make money here and then spend it here so it can trickle back to me. If I spend it out of town, it has almost zero chance of coming back to me. For the record, I pay my guys above average for the area, have insurance, no paid holidays officially but I always pay them 40 hours anyways. I charge more so I can provide a great place to work for my guys, and that helps the community in my eyes anyways.

 

[mgoncalves]

A local retired lumberyard owner once said, "If you do well in business, people will resent your profits. If you fail in business, people will laugh at you because you couldn't make it. "



I see that attitude all the time.