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Sears is considering selling the Craftsman brand

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Mark in Indiana

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I'm surprised that it didn't happen sooner, when I saw C-Man tools featured at Ace Hardware and Fastenal. Years ago, you only got C-Man at Sears.

I compare it to when American Motors went out shortly after selling the Jeep line.
 

Spdfreak91

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I have An extra 540 pc , USA for my lil one once he gets big enough. I can tell him all the stories of what once was... but by then they'll have some chinese sized fastener for his flying people transporter.
 

IndyGarage

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The problem for anyone buying it is the tremendous liability for warranty tools vs. the value of the brand.

Right now the value of the brand is at it's low point, so It would take somebody that can revive the brand name almost instantly to return it to prominence. I would think the only one who has a chance are Lowes or Home Depot - but they both have in-store brands.

Perhaps Menards might be capable of swinging it. If you did it right, you could potentially bring a lot of business into your stores. If you did it wrong you could lose a whole lot of money.
 

LXCam

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I found this closing statement interesting as well as ironic...

At some point, the management team has to try and figure out how to lure back shoppers. Financial engineering can only take Sears so far

How about bringing back a quality product, what a concept huh :)
 

jakemac

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It would make more sense for Ideal Industries to buy the brand. They were, or are already, making the majority of the handtools sold under the Craftsman brand (since the purchase of Moore Drop Forge and Pratt-Reed). It would allow them to boost their US facilities by bringing the manufacturing back from Asia.

They already have manufacturing and distribution contracts with the big box stores as well as many of the hardware distributors that supply the local hardware store chains.

The Apex Tool Group could handle it as well, but would likely move the label to more of an offshore brand.

I don't see a retail company buying the label for a house brand. The initial cost, plus (as mentioned) the warranty obligation would be too much for them to take on.

Of course, there is always the possibility that a foreign investment group jumps in ..................
 
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Wes J

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I don't see why it can't be saved. Do you guys remember back in the 80s when Craftsman started selling Taiwan and Japan made tools? Thousands of those tools were made and sold. They bounced back from that. They could bounce back from China.

A buyer would not be obligated to honor the current warranty. I can already visualize the flood of angry posts here...
 

jakemac

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I don't see why it can't be saved. Do you guys remember back in the 80s when Craftsman started selling Taiwan and Japan made tools? Thousands of those tools were made and sold. They bounced back from that. They could bounce back from China.

A buyer would not be obligated to honor the current warranty. I can already visualize the flood of angry posts here...

It would depend on the terms of the sale, but a new owner would be foolish to outright kill the warranty that generations of buyers have come to expect. The backlash could be crippling.
 

BrokewrenchLS1

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I don't see why it can't be saved. Do you guys remember back in the 80s when Craftsman started selling Taiwan and Japan made tools? Thousands of those tools were made and sold. They bounced back from that. They could bounce back from China.

A buyer would not be obligated to honor the current warranty. I can already visualize the flood of angry posts here...

What market segment would they sell in? GW, Tekton, , Kobalt, Husky, etc already have the lower-cost import tool market pretty well covered, SK, Proto, Armstrong, and Wright have the premium non-truck market covered, and Mac and Snap On have the truck market zipped up.

Craftsman dropped most of their US stuff to try and compete with the import manufacturers, and failed spectacularly.
 

ngk22r

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I agree that if what happened to S•K would happen to Craftsman would be awesome.
 

Al Bundy

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What market segment would they sell in? GW, Tekton, , Kobalt, Husky, etc already have the lower-cost import tool market pretty well covered, SK, Proto, Armstrong, and Wright have the premium non-truck market covered, and Mac and Snap On have the truck market zipped up.

Craftsman dropped most of their US stuff to try and compete with the import manufacturers, and failed spectacularly.

This pretty much sums it up.
 

T45

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What market segment would they sell in? GW, Tekton, , Kobalt, Husky, etc already have the lower-cost import tool market pretty well covered, SK, Proto, Armstrong, and Wright have the premium non-truck market covered, and Mac and Snap On have the truck market zipped up.

Craftsman dropped most of their US stuff to try and compete with the import manufacturers, and failed spectacularly.

The one shot might be to sell to government contracts, maybe get some new tooling that makes Made in USA cheaper, I agree that the retail consumer is now not really there. Tractor supply mabe? Its hard to see a market that is patriotic and cares about COO, that also has deep enough pockets to support significant long term investment in tools. The days of serious amateurs working on their cars seems to have slipped by, and joe DIY guy is buying HF or Taiwan stuff from a big box because of convenience.

ACE could do the brand justice and charge a bit more because they have good service, but they are also maybe not set up to be a full on tool company from a managerial perspective. That would require a huge investment in vertical integration when its alot easier to outsource that stuff to a white-label type OEM.
 

thegroundpounder99

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I'd love for Craftsman to make a come back, but I don't know if it can feasibly happen. The quality of Craftsman is long gone, arguably years before it became import. I don't think they'll be anybody that'll buy the brand and restore it to the USA made glory days. If anything I just see a big company buying it to use the name till it's completely irrelevant.


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Moparman390

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Longtime lurker, first time poster.

From a non Garage Journal perspective I don't see why so many here think Craftsman is dead as a brand. It still has either the largest market share or close to it of any tool brand, slipping, but still about 30% of the hand tool market. It still has universal name recognition and and still a lot of trust in the brand by Average Joe consumers. I talk to a lot of people that aren't professional wrench turners and they still view Craftsman as the best home use hand tool brand. Craftsman has their brand name on just about every tool and market segment under the sun. Just about everybody has one of their RP wrenches, standard screwdrivers, or 36T ratchets somewhere in their possession. Most everybody's daddy and granddaddy had lots of Craftsman tools, so to think it has no value or is dead is dead wrong. You just can't jump start or destroy that kind of brand equity overnight.

Someone will buy Craftsman or Sears will spin it off into it's own entity. Either way I would expect to see Craftsman in more places in the future.

Whomever buys it will have to honor the warranty or they will completely kill it, but that's a small trade off for the brand equity it has. And just about everybody has a lifetime warranty these days.

My own speculation is that if someone like Home Depot or Lowes buys it you would see them drop their Husky/Kolbalt line in favor of the universally recognized Craftsman, without too much concern for the liability of replacing tools under warranty as they already carry that liability of their own. If they did drop Husky to take Craftsman for instance I would also expect they would just do Husky replacements with like for like Craftsman tools then. Or someone like Apex buys it and replaces Crescent or something the same way.

Just my two cents.
 

Harix

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They should continue to become like Snap-On/Mac/Matco with routine Trucks with route
 

FigureItOut

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If Craftsman returned manufacturing to the U.S. as some suggested, Chinese Craftsman tools would start "breaking" at an even more alarming rate.

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340wedge

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I love reading these Craftsman threads and I don't know why. Just an observation. When was Craftsman a great tool, when did it go downhill, etc. I am left wondering, When Craftsman was in most households, there weren't alot of other top quality tools around, or needed. The average Craftsman tool could usually get the job done in the 40s through the early to mid 70s. I don't think before Craftsman went to China, the quality changed much, just that the other tools, even the cheap ones, the quality got much better. My father used to buy screwdrivers that would literally strip before the screw even did. Today's tools even a HF or similar is still a fairly quality tool. Of course not in the likes of a big box truck, but those are for professional, daily use. Craftsman was always for the homeowner, do it yourself person.
 

BrokewrenchLS1

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I love reading these Craftsman threads and I don't know why. Just an observation. When was Craftsman a great tool, when did it go downhill, etc. I am left wondering, When Craftsman was in most households, there weren't alot of other top quality tools around, or needed. The average Craftsman tool could usually get the job done in the 40s through the early to mid 70s. I don't think before Craftsman went to China, the quality changed much, just that the other tools, even the cheap ones, the quality got much better. My father used to buy screwdrivers that would literally strip before the screw even did. Today's tools even a HF or similar is still a fairly quality tool. Of course not in the likes of a big box truck, but those are for professional, daily use. Craftsman was always for the homeowner, do it yourself person.

Nostalgia makes people think Craftsman made great tools right until they shifted to Chicom production. Reality shows that their wrenches and sockets were serviceable enough for homeowners, and just about everything else (with the exception of a few things) were pretty much junk way before that.
 

RayBob58

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They should continue to become like Snap-On/Mac/Matco with routine Trucks with route

This seems feasible to me. The difference being that the trucks would cater to the same customers they have now. Homeowners. Because you'll never get the Snap-On/Mac/Matco trucks to stop by your garage. I like the idea.
 

Loscaldazar

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It would make more sense for Ideal Industries to buy the brand. They were, or are already, making the majority of the handtools sold under the Craftsman brand (since the purchase of Moore Drop Forge and Pratt-Reed). It would allow them to boost their US facilities by bringing the manufacturing back from Asia.

They already have manufacturing and distribution contracts with the big box stores as well as many of the hardware distributors that supply the local hardware store chains.

The Apex Tool Group could handle it as well, but would likely move the label to more of an offshore brand.

I don't see a retail company buying the label for a house brand. The initial cost, plus (as mentioned) the warranty obligation would be too much for them to take on.

Of course, there is always the possibility that a foreign investment group jumps in ..................

Ideal (and SK/Western Forge/Pratt Read) don't make too many Craftsman tools. Just the screwdrivers (WF), punches and chisels (WF) and pliers (WF). And those will go offshore soon enough too. Apex makes pretty much everything else for craftsman- sockets, ratchets, wrenches, specialty tools (now a lot are gear wrench clones), ratcheting wrenches, torque wrenches, extensions, etc.

There was an article posted last fall about how WF notified the government that they *might* be laying off workers. The assumption was that was because sears was moving their contract from WF to apex (and thus overseas). We've already seen the adjustable wrenches (previously made by WF) become chinese made, so sears is following that route. I do believe no one actually got laid off at WF though, SK Eric mentioned that they were working hard to find a way to keep all their employees, and they must have done so (new contracts with someone else?).

I don't see Ideal buying craftsman. Probably way outside of their budget, and they already have a very solid and successful tool company.
 

Blazinzuk

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I have alot of non GJ type of friends.

To say there isn't the demand for craftsman cause their tools are **** is well just narrow minded. This website is a group that values high quality tools.

I took my first several cars apart and put em back together with these , as some have said, none serviceable tools.

Any of my non car guy friends look at craftsman as a quality tool. They also think snap on is ****** people with their prices. Those occasional use people still view craftsman as a good tool.

I think Craftsman could easily stage a huge comeback
 

cowboy73

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About the only company that could really afford to buy the Craftsman name and all the liabilities would be Wal-mart. I really don't think anyone else would even try.
 

panknuckshovel

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yamaha0343

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About the only company that could really afford to buy the Craftsman name and all the liabilities would be Wal-mart. I really don't think anyone else would even try.

Walmart to me would make the most sense. Especially since they don't really have a legit house brand for tools. At the same time I'd hate to see it.
 

Moose97

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I think Craftsman still has a very valuable name and is looked upon by the general public as a quality tool. Bring back the made in the USA concept and I think it kills in a Home Depot type setting. Walmart could also do a brisk business but would likely ship more to China than Sears currently does. There are 3 different levels of Craftsman that could be of value if bought by the right group. Craftsman Industrial. Keep it high quality made in the USA and market it to the professional tradesman. The regular Craftsman. Bring back made in the USA and really push the warranty and go for the DIY'er who sees himself as a step above the "regular joe" tool buyer. Finally there's Craftsman Evolv. This gets you competing with the Pittsburg Pro's, Husky's and Kobalts of the world. Limited exchange policy on these. The question is who?
 

RayBob58

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All the Warranty issues would be governed by state and federal laws, not by contract negotiations, because neither party would have the customer's best interests in mind.
 

zendriver

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I wonder where it will go

They can do what they did with the "troy-bilt" ,"Remington" etc., brand name, just start slapping it on everything - cheap riding mowers, cheap string trimmers. hats, flashlights, binoculars, backpacks, etc. products that have absolutely nothing to do with the original brand name and may be of dubious quality.

People will see "Craftsman" and just assume they are getting a really good product.

They will feel very happy. :rolleyes:
 

MilwaukeeFish

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This seems feasible to me. The difference being that the trucks would cater to the same customers they have now. Homeowners. Because you'll never get the Snap-On/Mac/Matco trucks to stop by your garage. I like the idea.

Yeah its a nice idea but I don't think it would work.

First: because average homeowners generally wouldn't be willing to pay the value added premium needed to service those customers. They would rather grab what they needed at a store for a lower price when it is convenient for them. Not when the truck swings by their neighborhood on a Tuesday afternoon while Dad is at work and the rest of the clan is at soccer practice.

Second: The volume of product sold would have to be immense for a franchisee to show any profit. While people ***** about the cost of truck tools, it is generally an accepted fact that part of the reason the prices are so high is that a franchisee generally has a pretty high overhead to cover.

Those overhead costs exist regardless of the brand of tools sold from within a truck. There are only two ways to cover those costs: either the tools can get more expensive. Quite honestly that just isn't an option for a craftsman level of quality tool at this point. Or the sales volume has to increase. If people think the guys on the trucks often work like dogs now wait until they see how many hours a driver would have to put in hustling tools at the Craftsman price point to make a buck in profit.

Oh sure you could expand the territory for each driver and have fewer but larger routes. That would almost be necessary to cover the volume needed to see numbers in the black, but then you run straight into point number one. If the truck isn't there when it's convenient for buyers they will buy elsewhere. Running from one corner of an expansive territory to another multiple times a day to fit a 'joe homeowner' schedule just won't cut it because now your overhead is growing with all the gas spent criss-crossing town.

Last: there are so many tools out there that to not honor the legendary warranty would be corporate suicide. Asking a franchisee to spend more overhead to swap out tools without the potential of seeing any money generated for a given stop would be a non-starter for sure.

The way I see it, Craftsman is without a doubt a dyed in the wool brick & mortar (and internet) brand and will only successfully exist as such for as long as the brand does exist. Every other market is pretty much sewn up. That is unless someone is willing to pump huge amounts of capital into the brand and re-invent it but I can't think of who would take that risk.

--
 

zendriver

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HF would grab that name in a minute. Every store would have one of the ****-*** free with coupon tarps hanging out front with " NOW SELLING CRAFTSMAN " spray painted on it.

That would make the haters, so happy. :rolleyes:

I see shoppers, hauling HF products out by the shopping cart full. Why would they care if it had a Cman name on it? So they could pay more?

We like the current products and their names, just fine.
 

Schurkey

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I heard it said that rabid dogs are dead, they just don't know it.

Seems to apply to Craftsman, and Sears as a whole. They still twitch and growl, but they're dead. There is nothing that will bring back the glory days of both profitability and weekly tool specials on tools that would be worth owning.

Sears was in deep sh!t before K-mart bought them. They were in trouble back in the later '70s and early '80s, when it was said that the financial arm of Sears was propping-up the rest of the company.

Face facts: Craftsman is already so tainted that the sale of the name won't bring what it could have. Sears had real problems with Die-Hard when they went cheap and put the name on Exide products. Took a year or two to bring back Johnson Controls products, because Exide is junk. Ironically--and perhaps a lesson for Sears that they've refused to learn--once they brought back Johnson Controls and returned quality to the product, Die-Hard recovered it's reputation. Kenmore products have already been shopped-around to low bidders, accounting for the spotty performance/satisfaction of Kenmore-branded stuff.

Sears clothing and housewares, shoes, purses, no-one will miss. They had pure junk for electronics twenty+ years ago. Does Sears even sell Sears-branded bedding, dressers, etc? I wouldn't know--I haven't been in the store in over a year. Haven't bought anything there in longer than that.

Sears is grossly, completely, utterly mismanaged, starting at the top and going down level after level. They were a powerhouse, now they're a waste of real estate--and that's the only thing of value left to sell.
 

zendriver

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Why would Amazon or Walmart, want to take on a sinking ship? To lose money honoring warranties?

The Chinese products they sell - dirt cheap, are probably already as good or of higher quality.
 
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