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To: D. Long who wrote (174418)7/22/2006 6:21:04 PM
From: John Carragher  Respond to of 794268
 
we shall see.. his competition is not wal mart but home depot lowes who are supply competitive alternatives. there are not many die hard fans who pay a premium for his lawn mower if they can buy another consumer rated one from large supplier like home deport at cheaper price.

i would estimate these dealers charge top dollar to maintain those machines. At most his customer is at least middle to upper middle class who cut their own lawns..



To: D. Long who wrote (174418)7/22/2006 6:57:04 PM
From: SirWalterRalegh  Respond to of 794268
 
<<It would appear that Weir had a superior bargaining position

Yes - existing distributors that accounted for 80% of his sales. He didn't need Wal Mart.

What I meant was that Snapper is a superior product with few equals that are already aligned with others.

Independent distributors are very vulnerable to: limited capital, ownership succession, Big Box next store, changing demographics, etc.


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