Good morning Joe, I would like to tell you about an experience I Had yesterday in buying a replacement element for our oven.
I needed to replace the heating element in my oven and called Coastline Parts here in Salisbury, Gave them the part number and was told that the price was $69.95. He asked me my name and said I could come and pick it up. I thought about it for a few minutes and decided to check Amazon and found the EXACT part # delivered for $19.50. It just arrived by UPS. My point is Joe I really try hard to support local business but in this case his profits were just too excessive, I would have gladly given another $15.00 but $50.00 more is absurd. I believe that some of our locals need to realize that the day of these kind of profits are pretty much gone.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
I just purchased two new elements for my oven at H&H Furniture in Pocomoke. They were $80 total. I am willing to pay a little more to keep the little guy going. They do great appliance service as well.
ReplyDeleteI try to support local businesses also as well as buy American. But if they can't be more competitive than that I have to go with the lower price out of necessity. As most do I would think.
ReplyDeleteI know what this person means and it does put those of us who prefer to shop locally between a rock and a hard place.
ReplyDeleteWhen I was searching for new light fixtures for my house, I went online to get an idea of styles and prices. I ended up purchasing them at ED Supply, who were right in line with the prices I found online.
Buying from Amazon and buying local cannot be compared,Amazon can afford to lose money just look at their PE valuation whereas a local company cannot.
ReplyDelete
ReplyDeleteEach of the prior comments had merit, and so did the post.
The local merchant may/may not have been able to buy his part for what Amazon could sell for. But he apparently had the part for you in stock, which represented an investment on his part against the possibility you or someone else might need it.
How about a win-win approach? Call the merchant back and ask for a revised quote based on what you could do over the internet. You're still in the driver's seat on where you buy and perhaps you and the local guy both benefit.
Remember he has to maintain a store and carry Jim, Ricky & OweMalley while Amazon's leader uses his spare cash to buy that bastion of free thought - The Washington Post.
I work in B2B sales. People will slash my throat for a few bucks. And because of it, I have to do the same. If I can find a local deal for a reasonable markup over online, I'll take it. But nobody's offering to throw buy my products at 3x cost.
ReplyDeleteBut you could have had the part the same day locally. Perhaps it's a bit much, but how long does it have to sit on the shelf before it ever sells? As a business owner of another type of products, we have to keep $100,000 of product on the shelf in hopes of selling it to make maybe 20% to 30% profit. My rent is $3200 a month, I have liability, property, workers comp insurance, have to pay employees, electric, etc.
ReplyDeletePeople need to support local businesses for the convienance of having item in stock. We already have to compete with big box stores such as Walmart, Sams Club, Lowes, Home Depot, Best Buy, Staples, etc.
We have a limited number of people to sell to in Salisbury. Amazon has cheap warehouse space, sells huge volumes and sells to the whole country.
For all of you who just see price, you need to look at the many expenses that small businesses incur and realize that when all is said and done, I am 100% sure that Coastline parts finishes the year with no more than a 10% profit margin, which isn't even acceptable to pay your bills. Amazon has large warehouses that house 50 times what the local guy handles AND they buy them for cheaper because they buy in bulk. If you think they are gouging you, then you just need to research before you accuse. I am a small business owner and know for a fact that we have more expenses compared to our sales. The small guy will also give you customer service, answers to questions and go above and beyond to make sure you get what you need. Who gave you the catalog number? I bet Coastline checked it out and verified it and spent more time with you than where you bought it. If it is more expensive, then so be it but don't go around and bad mouth a business because their costs and therefore selling price is higher. That just makes you look bad.
ReplyDelete3:27 - Interesting analysis: Amazon loses money on every transaction you imply. $50 on a "$70" item from a local store is a lot. Wonder how the not only stay in business, but do it profitably?
ReplyDeleteI remember once when I first got to Salisbury in 1995, my water heater element went out. 2 kids on a Saturday night. Every source was closed for the weekend, of course. Joe Holloway listed his home phone or somehow I got on the phone with him, and he came out to his store on Sunday and found 2 elements in the attic for me.
ReplyDeleteCharged me straight retail, whatever that was. Wouldn't take a dime more because of the Sunday call. We all had a hot bath that night to get back to work on Monday. Thanks again, Joe!
Amazon somehow won't do that.
I appreciate the comparison to Amazon, but the fact is where ever Amazon is getting it from, they also have to have it in stock, pay taxes and insurances and most likely are also paying for a store front and employees.
ReplyDeleteI see no difference.
I ran into the same scenario with computer equipment at a local store vs online. Got the same reasoning for the $35 higher price. We bartered and agreed on a slightly higher price than the online quote. I give them credit for negotiating.
It's called free enterprise.... You shop for the best price and there isn't anything with that If a company overprices an item their loss .
ReplyDeleteAmen! Inefficient business need to go. Otherwise it is another form of welfare.
DeleteJust the way I feel ,
ReplyDeleteIf you want it , buy it , if you need it buy it.
At local business companies , if you tell them that the part is out of line price wise , most will research. Anyway , a new house on one side of town is 120,000 , the same house on the other side of town is 175,000.
If you want it , buy it , if you need it buy it.
I wonder where Coastline orders their parts from. Probably costs a lot more from that supplier than it would if they had ordered a few from Amazon. Maybe their purchasing agent could look at using Amazon and other discount sites instead of their current sources.
ReplyDeleteGo to Amazon next time then when you want a FREE GIFT CERTIFICATE for your LOCAL ORGINAZATION!!!
ReplyDeleteHummmmm, lets see what you get...
The sorry part is Coastline Parts will sell that same part to an appliance repair guy for $19.95, who will in turn charge his customer "list price" of $69.95 and labor to install it, which is even more insane as it is a five minute job to replace the oven element. Its just like auto parts stores (NAPA) and mechanics.
ReplyDeleteI love Coastline Parts! I always support local businesses no matter what!
ReplyDeleteThere is no part that Coastline Parts sells that can't be delivered from somewhere on the internet for a fraction of the Coastline price. It you have a part number, you have an internet store that will get it to you fast, and at a REASONABLE price.
ReplyDeleteIf you are in the appliance repair business, then Coastline Parts is the place for you.
How long do You have to work to make $50.00? Today especially here on the shore most people don't even make a livable wage. $50.00 is a whole lot of money to them!
ReplyDeleteI am a service contractor here in Salisbury and I only provide services to business. I can tell you that most will hire out of area contractors if their price is lower than mine. I very seldom get a call back for a price match and my prices are extremely competitive. I in no way can make a 60% profit. Believe me I am not complaining but this is just the way it is.
ReplyDelete4:05 PM
ReplyDeleteThanks for naming your business. With the attitude and disrespect for customers you display, I will never be one of your customers. Good job.
And to the other guy complaining about big box stores, etc., it's called free market. Supply and demand. Competition. et al.
I don't think anyone minds spending a few bucks more at a local merchant, but when the difference in price gets too large, it's just economics to spend less, save money and use the savings elsewhere.
Maybe you guys need to find better suppliers, order from the internet yourselves and put your markup on it, then sell it.
You can't blame the customer for all your woes. When I hear that much whining, it usually means that business is close to being out of business. Not that I wish that on anybody.
Loyalty only goes so far, especially in these economic times. High unemployment. You know the drill.
Maybe take a course or refresher course in marketing. Just a suggestion.
Believe me, most people want to see local shops succeed. Many prefer to shop small business instead of big box stores but sometimes simply cannot afford to.
I don't think it is any ones fault, just the way it is.
I certainly did not disrespect my customers. I was simply saying that local business shop for the lowest price also and if the low price is from a contractor outside of the lower eastern shore they will hire them, sometimes even if the aren't licensed or insured. They also pay cash in order to pay a lesser price and that is a fact!
ReplyDeleteLet's hear it for 9:40! Thank you for mentioning unlicensed contractors working for cash here! There's so much unemployment for the last 5+ years, that many chose not to use their unemployment to get licenses like I did. These are uneducated, non tax paying, uninsured workers who you can hire, but if they wind up leaving halfway through the job, taking a deposit and skating, burning down your house from their faulty equipment, or simply giving you a trashy job instead of professionalism, well, you have no recourse.
ReplyDeleteAnd the State will not hire anyone to go after these people.
There's a lot to be said for a licensed local business where you can walk in the door and speak to a person running the legal business to get proper satisfaction returns for misordered parts, and bad amateur workmanship.
Always hire a licensed professional. We have backup.