Stanley & Walmart is attacking Channellock

[geologist]

Oh, the horror!

So I went into Walmart today with my better half to buy some cat food and a new collar for her cat. Being somewhat bored (and preferring not to shop at Walmart) I took a stroll through the tool section. I wasn't looking for anything in particular, but I stumbled across the Channellock section. Personally, I love and appreciate the good people at Channellock, so I was a bit taken back by Stanley's half-price China-made knock-offs displayed almost identically, tool for tool beside the US made Channellocks.

Honestly, that's a pretty smart thing to do if you're wanting to outsell a competitor, but at the same time, it's a bit reprehensible and I find myself loosing what little respect I still had for Stanley.

 

[Jawn]

They just grouped them by what they are. (i.e., groove joint pliers with groove joint pliers). I think you're overthinking it.

 

[geologist]

They just grouped them by what they are. (i.e., groove joint pliers with groove joint pliers). I think you're overthinking it.

I would have thought that myself, but the "house brand" and other no-name tools were off by themselves elsewhere.

 

[mrpizza]

Companies pay good money for shelf space. Watch beer wars on netflix, its crazy the competition! I would say that is deliberate.

 

[sdguy55]

The only thing that worries me is at one time a little while ago i had read that the reason walmart does so good is it takes in these already 'household names' and puts them on the shelf but after so long every year they tell these companies 'hey, uh, if you wanna keep selling at wal-mart your gonna have to make your product cheaper' and so the company does and then it eventually gets to a point where they cant go any cheaper so they outsource...very sad stuff when i start to think of channelock goin that way

 

[Knuckle Buster]

The only thing that worries me is at one time a little while ago i had read that the reason walmart does so good is it takes in these already 'household names' and puts them on the shelf but after so long every year they tell these companies 'hey, uh, if you wanna keep selling at wal-mart your gonna have to make your product cheaper' and so the company does and then it eventually gets to a point where they cant go any cheaper so they outsource...very sad stuff when i start to think of channelock goin that way

Yep, sad as it is, thats about the size of it.

 

[MoToys]

The only thing that worries me is at one time a little while ago i had read that the reason walmart does so good is it takes in these already 'household names' and puts them on the shelf but after so long every year they tell these companies 'hey, uh, if you wanna keep selling at wal-mart your gonna have to make your product cheaper' and so the company does and then it eventually gets to a point where they cant go any cheaper so they outsource...very sad stuff when i start to think of channelock goin that way

Yup, that is called the walmart effect, very good book about it.
Sometimes it gets to a point where the company has already outsourced a product and cut the cost every year but, walmart still wants it cheeper. The manufacturer can't do it, walmart says fine they will stock someone else's product for cheeper. That company now goes belly up because 60% of there sales came from walmart which is now gone.
They are destroying everything in their path.

 

[thesilverone]

it still makes me sick to my stomach to see those crappy vise grips

 

[cowboy73]

That sure looks to me pretty delibrate. The unknowing customer sees the Channellock version selling for X amount and the Stanley for Y amount. "Look Ma! These here Stanley pliers are 1/3 of the Channellock!!!! Stanley makes good stuff, Granpappy Uncle used to buy Stanley tools right after WWII. I'm gonna get the Stanley ones." And so it goes...

 

[PECVD2]

In the end at least they are still offering up the USA made Channellock's, allowing us to have a choice.

 

[Obie]

I'd rather buy my Channellocks from a tool store than Wal-Mart anyways. The only time I ever shopped there was when I was in BFE, Pennsylvania and it was the only store within 45 minutes. But, that was because they put 90% of every store there out of business.

 

[stricht8]

Yes at least Walmart is selling US made stuff.

 

[rmsg0040]

I guess that your average walmart customer probably doesnt know much about tools, thats why they are shopping for it there. When they see the price difference, they will reach for the cheaper one. Just a strategic partnership between walmart and stanley.

This also happens at other stores too with other products.

 

[Stuey]

At Lowes the Channellocks are stocked close to the Task Force and Kobalt pliers. I highly doubt there's a conspiracy. Walmart's hand tool selection is so small there's probably no way to separate the brands.

 

[Davefr]

The only thing that worries me is at one time a little while ago i had read that the reason walmart does so good is it takes in these already 'household names' and puts them on the shelf but after so long every year they tell these companies 'hey, uh, if you wanna keep selling at wal-mart your gonna have to make your product cheaper' and so the company does and then it eventually gets to a point where they cant go any cheaper so they outsource...very sad stuff when i start to think of channelock goin that way

That's because the consumer demands low prices above all else. If a retailer can't serve the consumer they'll simply go elsewhere. (ex: HF)

The trend will likely continue since the average US consumer has a love affair with cheap Chinese goods.

P.S. The Wal Mart display looks fine. It's a typical example of "good", "better", "best" merchandising which has been around forever. If Channelock can't offer offer compelling reason's why they're the "best" then it's their problem.

 

[JASTECH]

I agree with original poster, Wal-Fart will import anything for money even though it hurts our economy and country.

 

[hotsam]

Yup, that is called the walmart effect, very good book about it.
Sometimes it gets to a point where the company has already outsourced a product and cut the cost every year but, walmart still wants it cheeper. The manufacturer can't do it, walmart says fine they will stock someone else's product for cheeper. That company now goes belly up because 60% of there sales came from walmart which is now gone.
They are destroying everything in their path.

Yep. Google Vlasic Pickles/Walmart.

 

[Davefr]

I agree with original poster, Wal-Fart will import anything for money even though it hurts our economy and country.

No different then any other US retailer. (Target, Lowes, Home Crapo, Ace HW, Best Buy, Sears, etc, etc, etc)

 

[Ross]

Walmart stocks what their customers buy. I would say it is fairly positive that they stock any Channellock tools at all because that would suggest that a decent number of their tool buying customers are willing to spend extra to buy them.

 

[kythri]

Regarding Walmart demanding ever-lower prices from their suppliers, some suppliers (Google "Walmart Snapper") tell them to take a hike, because, while having that sales network would, on the surface, look great, quite often, it isn't.

Snapper told them to take a hike. Channellock doesn't need Walmart to survive - sure, the added channel is great, but Channellock is a savvy business, and knows that their price point is perfect.

If a business can't sell to Walmart at a profit, then they shouldn't sell to Walmart just to subsidize their other product lines. I don't have a view into Vlasic's books, but they're a long-time brand. I think they could have weathered telling Walmart to pound sand, and maintained their pricing integrity.

Really, though, these companies made these decisions. How is Walmart demanding such deep discounts from suppliers any different than Home Depot or others doing the same? All retailers play this game, and leverage their sales channel against those discounts (i.e. threats of discontinuing sales, going with a competitor, etc.).

I'll bet you that this same game was played with Channellock at Home Depot, and this is why we've seen select items clearanced out and replaced with DeWalt versions right next to them on the displays.

 

[moronmountain]

In the end at least they are still offering up the USA made Channellock's, allowing us to have a choice.

I think the point is that eventually Channellock could end up being made in Asia simply because they sell at WM.

 

[Tarheelgarage]

The Walmart you don't know...


http://www.fastcompany.com/magazine/77/walmart.html?page=0,0

 

[Hootbro]

...................... But, that was because they put 90% of every store there out of business.

Such is life and business. I remember people saying the same thing about K-Mart in the 1970's and Sears even earlier. Long before Wal-Mart, malls and strip malls destroyed downtown shopping places.

Business models evolve and if your is not efficient, someone else will take your market regardless. Specialization is the key today as overpaying for basic staples like *** wipes and toothpaste to keep a "mom and pop" open for nostalgia, is not going to happen.

I do not miss the days of "making it a day" of going shopping to 5 or more places to get my shopping done.

 

[Dave.R]

I don't see anything wrong with variety. They have a product for a customer that doesn't care about quality and a Higher end tool for the customer that does. I would be more upset if I had only one choice, that was junk.

 

[Davefr]

Walmart's offering us a short term choice. In the long run, the intent is to put channellock out of business, and take over. Maybe only snap on, Stanley, and apex are big enough to withstand a Walmart onslaught.

That's foolish. Look at the price tags. WalMart makes more margin on the Channelock SKU's

However if consumers don't buy Channelock then they'll loose the shelf space if it's a stagnant SKU.

It's all about demand. Retailer's only care about one thing and it's gross margin $'s/shelf space and that falls on the manufacturers to make sellable product at competitive price points

 

[Monte]

At least the prices for Stanley tools are low compared to over here....:

 

[scylla]

I noticed a few days ago that there were some US made tools in Walmart that were priced cheaper than their Chinese competitor. I don't recall the brands.

Whether that means the advantage of outsourcing tool production is fading or it's just Walmart's price pressuring, I don't know.

 

[crankshaftdan II]

At least the prices for Stanley tools are low compared to over here....:

I believe the Fat Max line is the same as Stanley Industrial over here which is sold by Grainger's etc., and supposedly are "Better Quality" than the standard homeowner's stuff sold by Wal-mart?? Grainer's prices are a lot higher than Wal-mart's.

 

[wave180]

I don't see anything wrong with that. Buyers can see and feel the difference in quality anyway.

 

[shoturtle]

The Max are a high grade tool then the walmart stuff. Even Lowes have higher prices on the Max then the lower end stanley stuff.

 

[terry603]

Yep. Google Vlasic Pickles/Walmart.

why blame WM for their buying reasoning??
blame the selling company for not selling their item for a price that will keep them in business.
how much of your work do you give away at a loss, on purpose?

 

[PECVD2]

I think the point is that eventually Channellock could end up being made in Asia simply because they sell at WM.

Channellock already makes or rebrands items made in Asia.

http://www.garagejournal.com/forum/showthread.php?t=98371

 

[shoturtle]

channel lock got out of the ratchet business a while back. You can not find them on their website anymore.

But they do have Spanish rebranded adjustable that are really good.

 

[PECVD2]

They certainly sell ratcheting wrenches.

http://www.channellock.com/Ratcheting-Wrenches.aspx

 

[shoturtle]

they do sell wrenches but they are US made.

 

[PECVD2]

they do sell wrenches but they are US made.

These are made in Taiwan.

http://www.garageenvy.com/shop/channellock-6-pc-ratcheting-wrench-set.html

 

[shoturtle]

those are old stock, channel got out of that business. it is no longer on their website.

 

[shoturtle]

Think the only other non US item they sell is the laser light level. Not sure as I have not seen one first hand.

 

[archirelic]

Think the only other non US item they sell is the laser light level. Not sure as I have not seen one first hand.

Their nut drivers and screwdrivers are also imports.

 

[shoturtle]

forgot they sold screwdriver. Never used them. Thank for point that out.