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SBD's plans for Craftsman

FigureItOut

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When Sears decided to change the "sorry to hear it broke" warranty to "prove it's covered" warranty, the brand declined.

Time will tell if they can rebuild the brand if they don't rebuild the perceived warranty value.

It's my belief that it didn't happen this way, but rather the brand declined, and THEN the warranty experience changed. I think the general buying public barely noticed the move to offshore manufacturing, the subsequent decline in quality, or the warranty issues. You may have reason to believe otherwise and very well may be right.

The buyers that SBD, Home Depot et. al are after are certainly not us, as was discussed. Its the suburban dad who likes to change oil and tinker with his lawnmower, and I don't think that guy stopped buying Craftsman because Craftsman changed. He changed the way he bought. We know that Sears was way behind in getting on board with internet sales, and we know that malls declined steeply in general.

Amazon and the big box store took over the retail universe, and Sears failed to react. I don't think anything about the tools or warranty hurt sales in any meaningful way. We as pros or "power users" may have noticed, but we're barely a blip on the sales chart.





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The Fall

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Outside of cost cutting as they were in free-fall collapse, I never got why they went Chinese on hand tools. It was their point of difference among competitors and their problems seemed much deeper-seated than improving profit margins on sockets. It seemed myopic -- like charging double for a China-made combo wrench (over competitors) would go unnoticed among brand loyalists for any prolonged period of time. If COO isn't an issue for most (as many speculate), price certainly is -- and Home Depot has loose wrenches for 50% the cost. Most people are rightfully suspicious of Stanley's claims of USA manufacturing. They jettisoned jobs like it was going out of style in the late '90s. Nevertheless, this is a different environment and job outsourcing is finally getting recognized for some of the devastating effects it unleashes. That being said, I'm (admittedly naively) with the earlier poster who's in favor of giving Stanley the benefit of the doubt. DeWalt has been playing up the "Assembled in USA" badge (or Sheffield, England for Chisels) and I know when I bought a drill and impact combo they got my business for it. I'm convinced that if CMan were brought back to even 2010 standards they'd have a great chance. I just bought a tool collection off a friend whose father was a long-time mechanic. It was 75% Snap-On/Matco and 25% USA CMan. It was great knowing that the "worst" was Cman (although it did include a 3/8" RHFT flex ratchet!). I buy a lot of SK, but even that (at a more reasonable cost that the trucks) gets expensive. Something between them and HF would be great, although the industrial brands usually have great prices.
 

DadsTools

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I'm a professionally trained salesman from way back in the day. No doubt you all can see that slant in my postings on this thread. The reasons why people buy is a science and has been extensively studied. The science really developed in earnest around the late 1800s to early 1900s. You can see the evolution in ads from the period and after from "here's what we sell and here's where we are" to selling points all appealing to what this product will do for you. There's whole list of reasons why people buy things that I won't get into here.

But one of the points that have not yet been discussed relating to Craftsman is "Pride of Ownership." Very important button on a buyer's internal control panel. The public used to be proud of owning Craftsman tools, a brand that had become an institution without equal in the tool world from an establishment (not so much a company, but an establishment) that was one of the very few that could trace its American history in an unbroken line back to the 1800s. Stanley appears to be able to make the same claim, but a close look at Stanley history shows the company shifted gears several times, moving from a high-end professional grade of its roots to 'populist' tools to mergers and acquisitions to overseas production, so their historical line is more like a flailing zig-zag. Craftsman. on the other hand, always stayed the same as a brand--I don't refer to all the various makers they've had over the years, but the face they presented to the public with Craftsman was unwavering. It was a huge source of pride, and those who bought and owned Craftsman tools held a piece of that pride in their hands. You can see that in GJ sometimes with references to pride of ownership in older Craftsman tools. The image was one of standing on a rock rather than the shifting sands presented by other tool companies (those marketing primarily to the general public). Everyone else had prostituted themselves in one way or another, so their tools became just another impersonal product. Not Sears! Not Craftsman! They were still wholesome, still Mom's apple pie, still pure. Pride.

You guys remember the Tool Territory marketing campaign? When Sears began carrying competitors' products? That was the sign they were jumping the shark. That was the beginning of their 'corruption'. That followed by their efforts to come out with all kinds of revolutionary 'gimmick' tool designs to try distinguishing Craftsman from all others as the most innovative progressive line out there. That further blurred the Craftsman heritage. The people in charge were no longer the old guard, and that younger generation brought up in different times with eroding standards had lost sight of what made Craftsman an establishment. I believe that once they embarked on this path, there was no turning back.

Once Sears sold out and went Chiwan, the last vestiges of the old establishment was killed, that pride was largely destroyed because you can buy Chiwan stuff anywhere.

If SBD can address these issues and once again establish Craftsman as an institution with an image distinct from all others that folks will be again proud to buy into, they will have rescued the brand.
 
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Mechanical Noise

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Stanley hasn't exactly been quiet on their desire to get into the lawn and garden market with the Craftsman purchase.

That said, it's not exactly myopic to focus on hand tools, considering every single presentation or news release that SBD issues comments considerably on how they're expanding their hand tools factories to account for Craftsman production.

They haven't said they're building a huge new factory to make lawn and garden equipment. They *HAVE* said they're building a huge new factory, in addition to the other 11 that they have already, to build hand tools.

They themselves have been playing up hand tools far more than they've been playing up lawn and garden equipment.

I suppose the existing US suppliers of Craftsman lawn and garden stuff, such as MTD, will have enough capacity.

I wonder if SBD is taking on the full risk of their new factories. Did they shop around for local subsidies from local governments like the sport franchises do?

Will they build a big manufacturing complex, like Motorola did, and take off for China, leaving the taxpayers holding the bill?
 

The Fall

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I'm a professionally trained salesman from way back in the day. No doubt you all can see that slant in my postings on this thread. The reasons why people buy is a science and has been extensively studied. The science really developed in earnest around the late 1800s to early 1900s. You can see the evolution in ads from the period and after from "here's what we sell and here's where we are" to selling points all appealing to what this product will do for you. There's whole list of reasons why people buy things that I won't get into here.

I'm familiar with Bernays, Lippmann -- as well as Stuart Ewen -- and went to graduate school for mass communication. I agree with much of what you're saying; much of that early 20th century PR research was rooted in Bernays' uncle's scholarship (Freud) and Marx's theory of commodity fetish. Nevertheless, I still have trouble understanding the COO change from a business standpoint. What you're saying -- about the irrefutable reputation -- I absolutely agree with (I caught all those AJ Foyt and Villa commercials), as well as their niche market (psychographics). Why they chose to jettison that for a few dollars per tool is absurd; the brand's image was worth a lot more than whatever they got out of it. Sears Holding should have sold the line before it reached the point it's at now, but then again, I'm talking about Sears here...
 

chrismenke

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Considering that most of us "old guys" are pretty much at tool capacity already - the buyers for tools now are the young ones - AKA millennials - who have always had global items in their life. I don't see tools in the future (outside the pros) mattering to the buyer where they are made.

Tools are for fixing things...millennials don't do that.
 

Mechanical Noise

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Their comments (posted above) suggest otherwise.

They say:

" We'll have to see how it all shakes up, but we're looking at various scenarios"

And I read:

"Our current scenario is making the tools in the US, but, if there are other scenarios."

Motorola said COO was a big selling point for cellphones. They promised they were in for the long term, until they weren't.

I'll be more optimistic if Stanley is taking on the full risk on their own.
 

mmason7764

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Reading through this thread something occurred to me: Do you think SBD is counting on a Sears bankruptcy and close down in the next few years? That would explain why they agreed to Sears keeping control of Craftsman for their own stores.

I guess the ultimate accomplishment would be if a tool manufacturer was able to make themselves into a status symbol with the younger generations like Yeti. That would be something !!!
 

zendriver

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The whole entire problem stems from the premise that tools are supposed to be cheap and inexpensive. I'm just thankful that there's enough people out there who place a priority on quality for there to be a market for high end tools. If every person on the planet was thinking like a Harbor Freight, Lowes, Home Depot, or Sears customer, there would be no nice tools to be had anywhere. The world would be a very depressing place.

Most people that buy cheap tools, probably do so, to fix something they cannot afford to pay someone else to fix, then take the difference, to buy food and pay their electric bills.

They might just need tools, not metallic works of art.

What is most depressing, that average American real adjusted wages are about what they were 35 years ago. Maybe they'd like Snap On, but cannot afford them.

Bully, for those that are able to do so.
 

Mechanical Noise

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Who else is taking on "the risk" here?

I'm wondering if Stanley is getting special tax breaks or other subsidies to attract their new factories/distribution centers. Obviously, I don't know that they are but I'm not convinced that expanding US hand tool making is a sure fire winner.

If Stanley expects subsidies to make this work, it wouldn't say much for Stanley's confidence, either.

As I mentioned, my questioning goes back to the Motorola deal in Illinois. Motorola said they could keep making cellphones in the US as long as governments were financially cooperative.

As it turns out, sales of the US made phones were disappointing and Motorola quickly pulled out, leaving taxpayers holding the bag.

It's just a concern of mine. Maybe Stanley is making their bet without any of Other People's Money.
 

kythri

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If Stanley expects subsidies to make this work, it wouldn't say much for Stanley's confidence, either.

Yeah, I just can't judge SBD's confidence by the metric of accepting tax breaks or actual subsidies.

EVERY business takes whatever they can get to make things cheaper.
 
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Finance Guy

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Maybe Stanley is making their bet without any of Other People's Money.

Capital expenditure budgets must tie back to companies' cash flow statements ... in other words, SBD is funding $80 million cash out of its own pocket. Any incentive tax breaks, etc. would be incremental to this.
 

victor252

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What is most depressing, that average American real adjusted wages are about what they were 35 years ago. Maybe they'd like Snap On, but cannot afford them.

This is not accurate. Household income is roughly the same but there are fewer workers per household. Young people are staying single longer and the elderly are living longer in retirement and longer as widows and widowers. There are also more households with no workers, living on welfare. When you look at wages for actual workers, they have gone up significantly. That's why we own more, bigger and better TV's, cars, houses, and get more college degrees and take more vacations.

The progressives deliberately use HHI rather than income per worker to justify their political agenda. For the non-economist the distinction is easy to miss.

FYI, most households in the bottom 20% work less than 40 hours per week while most in the top half are working ~80 hours.

Check this graph from the American Time Use Survey. It is by individual and not household but you'll get the idea.

https://www.theatlas.com/charts/Vy_crZ3Hx
 

DadsTools

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Stanley hasn't exactly been quiet on their desire to get into the lawn and garden market with the Craftsman purchase.

That said, it's not exactly myopic to focus on hand tools, considering every single presentation or news release that SBD issues comments considerably on how they're expanding their hand tools factories to account for Craftsman production.

They haven't said they're building a huge new factory to make lawn and garden equipment. They *HAVE* said they're building a huge new factory, in addition to the other 11 that they have already, to build hand tools.

They themselves have been playing up hand tools far more than they've been playing up lawn and garden equipment.
I agree. Stanley knows that the hand tools are the core of the Craftsman legacy.
 

Mechanical Noise

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Yeah, I just can't judge SBD's confidence by the metric of accepting tax breaks or actual subsidies.

EVERY business takes whatever they can get to make things cheaper.

I just have a generalized concern when politicians try to subsidize industry. Wisconsin seems willing to give billions to Foxconn to get them to build a factory. The state might finally break even in 30 years, assuming Foxconn then employs 13000 people and not 13000 robots. Of if Foxconn hasn't moved to someplace which throws even more money at them.

I have a pretty strong suspicion that Foxconn would not be expanding in the US without a pretty strong subsidy.

To be fair, I haven't heard anything which indicates that Stanley is hard playing the taxpayer subsidy game.
 

DadsTools

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I'm familiar with Bernays, Lippmann -- as well as Stuart Ewen -- and went to graduate school for mass communication. I agree with much of what you're saying; much of that early 20th century PR research was rooted in Bernays' uncle's scholarship (Freud) and Marx's theory of commodity fetish. Nevertheless, I still have trouble understanding the COO change from a business standpoint. What you're saying -- about the irrefutable reputation -- I absolutely agree with (I caught all those AJ Foyt and Villa commercials), as well as their niche market (psychographics). Why they chose to jettison that for a few dollars per tool is absurd; the brand's image was worth a lot more than whatever they got out of it. Sears Holding should have sold the line before it reached the point it's at now, but then again, I'm talking about Sears here...
Sears lost its way. The generation running the operation tossed tradition aside. They didn't understand the 'institution' because they were raised in a world where such values appeared to have little meaning. Fast buck, fast flip, no one cares about standards and tradition anymore, everyone buys Chinese anyway. The "Tool Territory" campaign was their first sign of desperation.
 

DadsTools

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Reading through this thread something occurred to me: Do you think SBD is counting on a Sears bankruptcy and close down in the next few years? That would explain why they agreed to Sears keeping control of Craftsman for their own stores.

I guess the ultimate accomplishment would be if a tool manufacturer was able to make themselves into a status symbol with the younger generations like Yeti. That would be something !!!
I think you're onto something here. It could very well be they had no expectation of a long-term competition from Sears. For pity sake, they just sold their first-born! A walk though the tool department with all the empty spaces today makes it look like theyt're already phasing out of the tool business.
 
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Finance Guy

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Reading through this thread something occurred to me: Do you think SBD is counting on a Sears bankruptcy and close down in the next few years? That would explain why they agreed to Sears keeping control of Craftsman for their own stores.

I guess the ultimate accomplishment would be if a tool manufacturer was able to make themselves into a status symbol with the younger generations like Yeti. That would be something !!!

I don't think SBD would have entered into this deal structure if they thought Sears would be in the tool business for very long.

Since Sears is able to continue producing and selling Craftsman products royalty-free, Sears effectively monetized an asset (the brand name) without sacrificing revenues and cash flows. Likewise, because SBD does not own the existing revenue stream, they have a built-in incentive to see Sears fail ... it also means that SBD got to pay a much lower price!

Had SBD purchased Sears' existing revenue stream, the company would be hugely incentivized to see Sears succeed.
 

kythri

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I just have a generalized concern when politicians try to subsidize industry. Wisconsin seems willing to give billions to Foxconn to get them to build a factory. The state might finally break even in 30 years, assuming Foxconn then employs 13000 people and not 13000 robots. Of if Foxconn hasn't moved to someplace which throws even more money at them.

I have a pretty strong suspicion that Foxconn would not be expanding in the US without a pretty strong subsidy.

To be fair, I haven't heard anything which indicates that Stanley is hard playing the taxpayer subsidy game.

The billions they're giving, though, are in tax breaks. They're not actually forking over taxpayer dollars, are they?

So, if Foxconn decided to build elsewhere, Wisconsin would be "giving" the same amount, right?

Perhaps I'm looking at this too simplistically, but it still seems like a net gain for Wisconsin, since it employs a bunch of people, and they pay income tax, not to mention, spend that money in Wisconsin's economy.

I've seen concerns that maybe jobs will go to those that live in Illinois, given the propsoed location of the plant, but wouldn't they at least pay Wisconsin income tax? I'm not familiar with Wisconsin's tax laws, but I know that if you live or work in Oregon, you're supposed to be paying income tax in Oregon.
 

victor252

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The billions they're giving, though, are in tax breaks. They're not actually forking over taxpayer dollars, are they?

So, if Foxconn decided to build elsewhere, Wisconsin would be "giving" the same amount, right?

Perhaps I'm looking at this too simplistically, but it still seems like a net gain for Wisconsin, since it employs a bunch of people, and they pay income tax, not to mention, spend that money in Wisconsin's economy.


You are correct. In the short run, it will be a net gain for WI to have more jobs, less unemployment, more people paying income taxes, etc. The big picture concern is that other businesses will demand tax breaks as well. The big boys will be more likely to get those breaks, which will put them at an advantage to small firms and pre-existing firms that have to pay taxes.

Still, as someone who doesn't like taxes at all, I'm not exactly going to whine about it.

#Ron Swanson
 

6PTsocket

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Thank you Finance Guy! Let's see how long this can go without the serial Craftsman bashers showing up to tell everybody why it can never work...Three, Two, One...
The bashing is related to the mess that Sears has become and what they did to the Craftsman brand. Craftsman is really just a name. What Stanley does with it remains to be seen. I wish them well. If they can produce a quality US tool at a good price that is terrific. It would be good for them, the customers and the economy.

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3 Gun Shooter

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Thank you Finance Guy! Let's see how long this can go without the serial Craftsman bashers showing up to tell everybody why it can never work...Three, Two, One...

Truthfully I hope it works out for SBD/Craftsman, maybe some tools made in the U.S. and other made overseas but insist on QUALITY. Look at Gearwrench and Gray Pneumatic, even though made overseas the quality is good.
 
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Finance Guy

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Truthfully I hope it works out for SBD/Craftsman, maybe some tools made in the U.S. and other made overseas but insist on QUALITY. Look at Gearwrench and Gray Pneumatic, even though made overseas the quality is good.

I agree with this entirely ... while SBD has committed to re-Americanizing the Craftsman brand, I hope the ultimate goal is to produce the highest quality tools available at a mid-tier price point. Nobody complained when Sears Craftsman sold German-made Knipex pliers or Japanese-made Vessel screwdrivers ... I would personally welcome SBD pulling through some of their Facom tools under the Craftsman name.
 

Gmonkee

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The bigger deal is going to be when the new production hits store shelves it will need sales.

Sales of a confidence building level for the guys that risked so much to bring it back. So in mid 2018 a lot of folks need to head on down to the local Ace and vote with a few dollars.

Whatever Sears is doing that same day shouldn't really matter.

I have seen good ideas flounder and a small startup or two stay small for years because either they didn't get it out far enough or everybody took a wait and see attitude.

I have seen mediocre products become international because very simply they made a lot of money and stayed in the game.

Vote carefully and often with those dollars and tell Stanley what you want more of. They will be watching closely. YOU are the future of Craftsman.
 

Brick Axelrod

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I would love to see them succeed. I hope they honor the warranty of the **** they are putting out now and replace it with the better quality stuff when they start making it. I was a big fan of the brand when I was younger and will be again if they start making better quality stuff again.
 

6PTsocket

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The bigger deal is going to be when the new production hits store shelves it will need sales.

Sales of a confidence building level for the guys that risked so much to bring it back. So in mid 2018 a lot of folks need to head on down to the local Ace and vote with a few dollars.

Whatever Sears is doing that same day shouldn't really matter.

I have seen good ideas flounder and a small startup or two stay small for years because either they didn't get it out far enough or everybody took a wait and see attitude.

I have seen mediocre products become international because very simply they made a lot of money and stayed in the game.

Vote carefully and often with those dollars and tell Stanley what you want more of. They will be watching closely. YOU are the future of Craftsman.
I hope the succeed for a number of reasons. It gives me another choice for decent tools at a reasonable price. As far as saving the Craftsman name, I have zero emotional attachment. SBD is a monster international company that only bought the name because if they play their cards right they can make more money. If they make stuff that meets my needs, great. I could care less what the call it. They are looking for new markets. Lets see what it does for me.

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JazzBlueRT

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The billions they're giving, though, are in tax breaks. They're not actually forking over taxpayer dollars, are they?

So, if Foxconn decided to build elsewhere, Wisconsin would be "giving" the same amount, right?

Perhaps I'm looking at this too simplistically, but it still seems like a net gain for Wisconsin, since it employs a bunch of people, and they pay income tax, not to mention, spend that money in Wisconsin's economy.

I've seen concerns that maybe jobs will go to those that live in Illinois, given the propsoed location of the plant, but wouldn't they at least pay Wisconsin income tax? I'm not familiar with Wisconsin's tax laws, but I know that if you live or work in Oregon, you're supposed to be paying income tax in Oregon.

Yes they are tax breaks and yes, WI wins the moment Foxcon pays 1 penny in taxes because that is 1 penny more than they would have had without Foxconn.
 

JazzBlueRT

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I'm a professionally trained salesman from way back in the day. No doubt you all can see that slant in my postings on this thread. The reasons why people buy is a science and has been extensively studied. The science really developed in earnest around the late 1800s to early 1900s. You can see the evolution in ads from the period and after from "here's what we sell and here's where we are" to selling points all appealing to what this product will do for you. There's whole list of reasons why people buy things that I won't get into here.

But one of the points that have not yet been discussed relating to Craftsman is "Pride of Ownership." Very important button on a buyer's internal control panel. The public used to be proud of owning Craftsman tools, a brand that had become an institution without equal in the tool world from an establishment (not so much a company, but an establishment) that was one of the very few that could trace its American history in an unbroken line back to the 1800s. Stanley appears to be able to make the same claim, but a close look at Stanley history shows the company shifted gears several times, moving from a high-end professional grade of its roots to 'populist' tools to mergers and acquisitions to overseas production, so their historical line is more like a flailing zig-zag. Craftsman. on the other hand, always stayed the same as a brand--I don't refer to all the various makers they've had over the years, but the face they presented to the public with Craftsman was unwavering. It was a huge source of pride, and those who bought and owned Craftsman tools held a piece of that pride in their hands. You can see that in GJ sometimes with references to pride of ownership in older Craftsman tools. The image was one of standing on a rock rather than the shifting sands presented by other tool companies (those marketing primarily to the general public). Everyone else had prostituted themselves in one way or another, so their tools became just another impersonal product. Not Sears! Not Craftsman! They were still wholesome, still Mom's apple pie, still pure. Pride.

You guys remember the Tool Territory marketing campaign? When Sears began carrying competitors' products? That was the sign they were jumping the shark. That was the beginning of their 'corruption'. That followed by their efforts to come out with all kinds of revolutionary 'gimmick' tool designs to try distinguishing Craftsman from all others as the most innovative progressive line out there. That further blurred the Craftsman heritage. The people in charge were no longer the old guard, and that younger generation brought up in different times with eroding standards had lost sight of what made Craftsman an establishment. I believe that once they embarked on this path, there was no turning back.

Once Sears sold out and went Chiwan, the last vestiges of the old establishment was killed, that pride was largely destroyed because you can buy Chiwan stuff anywhere.

If SBD can address these issues and once again establish Craftsman as an institution with an image distinct from all others that folks will be again proud to buy into, they will have rescued the brand.


You lost me about halfway through when your logic went from science to opinion.

Current market research shows that Craftsman is one of the most trusted brand names in the world and THE MOST trusted tool brand in America.

Craftsman is also more that just tools, it is also yard equipment and other "novelties."

Very few people care of COO and the people who seem to complain about the warranty seem to always have a shady story behind their "ordeal."
 

zendriver

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Yep, Craftsman is such a "trusted brand", when they started having everything made in China, the "loyal" started going to Harbor Freight - to buy Chinese made tools.

Makes perfect sense.

Maybe the word we are seeking is melancholy.
 

6PTsocket

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You lost me about halfway through when your logic went from science to opinion.

Current market research shows that Craftsman is one of the most trusted brand names in the world and THE MOST trusted tool brand in America.

Craftsman is also more that just tools, it is also yard equipment and other "novelties."

Very few people care of COO and the people who seem to complain about the warranty seem to always have a shady story behind their "ordeal."
If they are so trusted, why are the circling the drain? A lot of people polled probably buy very little. It is like polling everybody on a political position vs asking likely voters. I guess Stanley believes it. The people still buying there are not in the market for quality It is price, warranty and sentiment. That is a market too but that does not set a very high bar for Stanley to meet. If they still buy from Sears they will be thrilled with any improvment by Stanley. SBD has good lines but the sell plenty of low end, too. B&D and the Stanley ratchet stuff is home owner grade.

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kythri

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Sears isn't circling the drain due to the Craftsman brand. Sears is circling the drain for a LOT of other reasons.
 

Mechanical Noise

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The billions they're giving, though, are in tax breaks. They're not actually forking over taxpayer dollars, are they?

So, if Foxconn decided to build elsewhere, Wisconsin would be "giving" the same amount, right?.

Foxconn could get up to $200 million in cash a year from state residents for up to 15 years

http://www.jsonline.com/story/news/...h-year-state-residents-up-15-years/519687001/

Foxconn subsidies could mean heavy borrowing for local municipalities


http://www.jsonline.com/story/news/...sconsin-jobs-gov-scott-walker-says/516073001/


Perhaps I'm looking at this too simplistically, but it still seems like a net gain for Wisconsin, since it employs a bunch of people, and they pay income tax, not to mention, spend that money in Wisconsin's economy.

I've seen concerns that maybe jobs will go to those that live in Illinois, given the propsoed location of the plant, but wouldn't they at least pay Wisconsin income tax? I'm not familiar with Wisconsin's tax laws, but I know that if you live or work in Oregon, you're supposed to be paying income tax in Oregon.

Probably, but there's an assumption that, a couple of decades from now, the factory will be employing thousands of people rather than thousands of robots.

And that's assuming Foxconn doesn't pull out for an even sweeter deal somewhere else.
 

DadsTools

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Joined
Jul 27, 2017
Messages
1,852
You lost me about halfway through when your logic went from science to opinion.

Current market research shows that Craftsman is one of the most trusted brand names in the world and THE MOST trusted tool brand in America.

Craftsman is also more that just tools, it is also yard equipment and other "novelties."

Very few people care of COO and the people who seem to complain about the warranty seem to always have a shady story behind their "ordeal."
I'm uncertain what part of my opinion you had trouble with. I find it curious that the apparent 'refutation' of ideas I have been expressing is to quote an OPINION poll.

I don't know about any kind of survey you're speaking of. Love to see a link to a published result of this survey. I would certainly agree that Craftsman might be the most recognized tool brand in the world among the general public. But trusted?

Apparently, this 'trust' does not equate to lots of sales, otherwise the tool departments in the Sears stores I and others have observed wouldn't look like the neglected graveyards they do today.

The only "shady ordeal" in the warranty policy of replacing broken ratchets with other used broken ratchets rebuilt by a store clerk is on the part of Sears.
 

Jim_No_Garage

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Joined
Jan 15, 2011
Messages
3,306
Location
Millington NJ
Sears isn't circling the drain due to the Craftsman brand. Sears is circling the drain for a LOT of other reasons.

Maybe he only walks into the tool department and he's unaware that the majority of the floor at Sears is devoted to non-tool merchandise?

< 12% of my local store's footprint is tools - the rest is clothing, jewelry, appliances, electronics, bedding, housewares, shoes, furniture . . .

It will be interesting to watch this from the sidelines. I questioned SBD allowing Sears to create their own Craftsman tools royalty free - but if SBD figured Sears is on the way out then it's a non-issue.

Jim
 
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Finance Guy

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Joined
Aug 7, 2017
Messages
254
Location
Saudi Arabia
I questioned SBD allowing Sears to create their own Craftsman tools royalty free - but if SBD figured Sears is on the way out then it's a non-issue.

Two Craftsman brands is a bad idea ... I don't think any rational person would dispute this. My guess is that this was Sears' idea as a way to monetize the brand name without sacrificing revenues.

Why would SBD agree to a seemingly bad deal structure?

1) It lowered the price substantially! This is a bit too simplistic, but consider that SBD paid $2 billion for Irwin/Lennox, which had annual sales of $750 million ... it paid less than half ($900 million) for Craftsman, a company whose sales were more than twice those of Irwin/Lennox. Had SBD purchased Craftsman with similar metrics as Irwin/Lennox, it would have spent nearly $5 billion (instead of $900 million).

2) It effectively made a bet that Sears would fail, at which point it would have the brand all to itself.

It's sorta like that NFL draft when the Texans used a low-value 6th round pick on Drew Henson (who was still a minor league pitcher), and eventually traded him to the Cowboys in exchange for a higher-value 3rd round pick. If Sears ultimately fails, then SBD successfully purchased a $5 billion asset for less than $1 billion.
 

victor252

Well-known member
Joined
Jul 24, 2017
Messages
343
Foxconn could get up to $200 million in cash a year from state residents for up to 15 years

http://www.jsonline.com/story/news/...h-year-state-residents-up-15-years/519687001/

Foxconn subsidies could mean heavy borrowing for local municipalities


http://www.jsonline.com/story/news/...sconsin-jobs-gov-scott-walker-says/516073001/

After looking at your links it seems this not really a tax break so much as an outright subsidy. The state tax on personal income is less than 7% but the state is giving up to 17% for every "qualifying payroll check".

Assuming that every dollar is qualifying, the state is subsidizing more than 10% of Foxconn's wages because the state tax increases with income from 4 to 6.27% (you need to earn over 300k to be taxed higher than that). If the qualifying payrolls are only about one quarter to one third of total payrolls, the state might break even if they weren't also spending $252 million on infrastructure.

I'd be very interested in the assumptions in David J Ward's economic model to see why he thinks this deal is very attractive. It seems like a backroom deal and Foxconn does not have a great reputation. They were know for very high rates of employee suicide in their overseas plants.

"Within 2010, there was 18 attempted suicides by Foxconn (Chinese: 富士康) employees resulting in 14 deaths in the same year"--wikipedia
 
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