Interesting Sears Survey- WHAT?!?!

[Steinmetz]

Has anybody considered the possibility that the reason that Sears (and most other consumer-grade tool companies) have outsourced production is because some extremely qualified executives and some amazingly intelligent and well-educated consulting firms have come to the realization that the average American consumer prefers low prices over quality?

Sears is going under because they have lethargic management and haven't been able to adapt to a constantly changing domestic market as quickly as they needed to. It isn't because they started outsourcing their tools. In fact, had they started outsourcing their tools earlier, they could have actually produced better tools for a lower price, and retained more market share.

The reality is this: Until American consumers start to prioritize US-made and quality products (these are, believe it or not, distinct) over cost, and there is no reason to expect them to do so anytime soon, more and more tools will begin to be outsourced. Manufacturing in America started dying out decades ago, and this isn't actually a bad thing. Many of the manufacturing jobs America lost to foreign countries have been replaced by higher-paying jobs with more stability, better benefits, and more enduring possibilities of advancement. Especially for those with the willingness and ability to learn the necessary skills.

Agree, in large part. Until consumers value high wage jobs more than low prices, the winds will be decidedly remain from a certain direction. And I don't see it changing.

 

[arms1970]

It wont happen. The warranty issues. Territories of franchise. Etc Etc.

 

[907arcticcat]

The failure of Sears has very little to do with the outsourcing of Craftsman offshore as much as we like to think tools are the end all!

Tastes change and Sears got caught in a time warp. No woman I know under 60 would be caught dead in that store. Out of date fashion, half the store on clearance, empty and disorganized shelves, losing partnerships with name brand vendors and…the list goes on! They would have been wise to bring in some youth with a vision for value priced quality fashion. Although they have a much bigger product base at Sears, it sure worked well for Gap/Old Navy and the market they have carved out for themselves.

If they could turn around the other parts of the business, I think the Craftsman name could survive and return to a reputable Made in USA label. The truck brand idea is ridiculous unless they are referring to "in name only" items like Snap On sells at Costco.

 

[ryanm]

never know what to expect at my local sears...on two occasions the prices that rung up were higher than those listed on the tag in the isle. thankfully i was paying attention and they corrected the error. totally agree that some of those ideas seem like sears is simply grasping at straws or it is very,very wishful thinking

 

[mmack66]

You guys get all boned up about those tool stores in Japan, and then when Sears sends out a survey that talks about creating such a store, it's like it is the dumbest idea ever.

And some bozo even said he wouldn't go to such a place to buy Snap-On tools. Come on.

Obviously, it's never going to happen because of the antiquated way that the high dollar tools are sold here in the US, but man, at least dream a little.

 

[nicksnothereman]

Agree, in large part. Until consumers value high wage jobs more than low prices, the winds will be decidedly remain from a certain direction. And I don't see it changing.

Not to be a total d-bag but it's referential when it comes to purchasing power. Employees would be paid more but everything would be more expensive so it would basically be the same thing. There would be some lag but it wouldn't be more than a couple months, more for housing.

There's no way these robber barons would eat the increased cost of labor...no way. Even if it were contractual (say a fixed rate mortgage) they'd try to wiggle out of it like the snakes they are.

 

[sberry]

It doesn't matter to me.

 

[Rock Hound]

As much as I would like to see some or all of these implemented; I'm not holding my breath. Yesterday I walked into the local Sears Hardware to replace a 17mm 3/8 socket and buy a 6" C-clamp. They did not have either. The guy working there looked at me like I was crazy when I asked why a hardware store didn't have a single C-clamp. They did have a rack of Craftsman bottle openers that had screwdriver handles, maybe 50 of them on it.

 

[defektes]

As much as I would like to see some or all of these implemented; I'm not holding my breath. Yesterday I walked into the local Sears Hardware to replace a 17mm 3/8 socket and buy a 6" C-clamp. They did not have either. The guy working there looked at me like I was crazy when I asked why a hardware store didn't have a single C-clamp. They did have a rack of Craftsman bottle openers that had screwdriver handles, maybe 50 of them on it.

Sears has been far from a hardware store for many years. Your best bet is to find a mom and pop ace, may have a USA 17mm and plenty of C clamps to choose from.

 

[mmack66]

Sears has been far from a hardware store for many years. Your best bet is to find a mom and pop ace, may have a USA 17mm and plenty of C clamps to choose from.

I guess he was talking about one of those specialty stores that Sears came up with, as most regular Sears stores will certainly stock 17mm sockets and an assortment of c-clamps. At least the ones around here do.

 

[cevans7]

One need only look at Germany under Angela Merkel to realize that this argument doesn't hold water. Labor costs don't have a damn thing to do with it.

To say that "labor costs don't have a damn thing to do with it" is to ignore the basic principles of economics. Labor costs are a massive component of the cost structure for almost every firm, with the only notable exceptions I'm aware of being in the tech/computing industry. But anyway...

You do realize that one of the reasons Germany has fared so well under Angela Merkel (and, to be honest, before her tenure) is precisely because they resisted raising wages, which kept them more competitive especially compared to the rest of Europe. There are certainly other factors, some of which include elements of education policy that an unfortunately large number of Americans would immediately decry as being socialist, some of which are historical, some of which are geopolitical, some of which are demographic.

To say "one need only look at..." belies the vast differences in Germany and America: Structure of the economy, structure of corporate finance, development and liquidity of bond markets, trading partners, historical biases, etc.