Headline: The World is on Sale and your Profits are Down!
This is not a real headline but it is a real problem!
I as a manufacturer I have been handling many phone calls from dealers out there complaining about excessive margin erosion from competition. I realize Mr. and Mrs. Gotrocks think the world is on sale with the incentives that are given in other industries. After all, the Government gave anyone that wanted a new car $4500 for their old one. They are also giving money away for new appliances that save energy. Most retail clothing stores have been selling clothes at 50% off (even Tommy Bahama) and you can but a new TV for less than my electric bill. All this said I don't think there has been bailout money allocated to remodel a bath! SO why cave in to the pressure from the end user for discounts beyond the norm? I realize no one wants a sale to walk out the door but at what expense. If margins don't stay up then expenses need to go down. Well most of us have already cut what can be cut so next is what? Your wrist?
This thing is taking longer than anticipated and may take a little longer still but don't give away your farm yet. There is money to be made you might as well be the one making it!
This is not a real headline but it is a real problem!
I as a manufacturer I have been handling many phone calls from dealers out there complaining about excessive margin erosion from competition. I realize Mr. and Mrs. Gotrocks think the world is on sale with the incentives that are given in other industries. After all, the Government gave anyone that wanted a new car $4500 for their old one. They are also giving money away for new appliances that save energy. Most retail clothing stores have been selling clothes at 50% off (even Tommy Bahama) and you can but a new TV for less than my electric bill. All this said I don't think there has been bailout money allocated to remodel a bath! SO why cave in to the pressure from the end user for discounts beyond the norm? I realize no one wants a sale to walk out the door but at what expense. If margins don't stay up then expenses need to go down. Well most of us have already cut what can be cut so next is what? Your wrist?
This thing is taking longer than anticipated and may take a little longer still but don't give away your farm yet. There is money to be made you might as well be the one making it!
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