A return to quality?

[Zeke]

I lifted this quote from a thread about tools on the 911 BBS:

"So give me Craftsman and hopefully KMart wont screw that up."

That got me to thinking, everything is getting reduced to the lowest common denominator. Will this process actually swing the pendulum back in the other direction in a limited and selective market?

[tabs]

It was Sears that bought K-Mart..so I think Craftsman tools will be OK....

100 years ago things were built to last, things that were manufactured were labour intensive....thus expensive....

Today we have mass production where the unit cost is down and we have become a disposable society...why fix a TV for $100 when you can buy a new one with better technology for $89.

[Zeke]

There seems to be some debate on who bought whom.

from the Chicago Tribune:
The merger swaps Kmart shares one-for-one with the new Sears Holdings shares, while Sears stockholders will get either $50 a share or one share of the new company for every two Sears shares they now hold.

from USA Today
NEW YORK — Just 18 months after emerging from bankruptcy protection with many analysts giving it up for dead, Kmart (KMRT) agreed Wednesday to pay $11 billion for Sears Roebuck (S), creating a 3,500-store behemoth.

If shareholders and antitrust regulators approve the deal, then Sears Holdings, as the combined company will be named, will become the country's No. 3 retailer after Wal-Mart (WMT) and Home Depot (HD) with $55 billion in revenue. Sears currently is No. 5 and Kmart is No. 8

from Forbes.com
The two retailers announced Wednesday that they will combine in an $11 billion deal. The new company, to be called Sears Holdings, will be based in Sears' (nyse: S - news - people ) hometown of Hoffman Estates, Ill. Kmart (nasdaq: KMRT - news - people ) will continue to operate under its own name and will retain its offices in Troy, Mich. The combined operation will have $55 billion in annual revenue, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores. The merger follows a deal by Kmart to sell 50 stores to Sears for $575 million; Kmart also cashed out 18 stores to Home Depot (nyse: HD - news - people ) earlier this year.

I'm not trying to hijack my own thread, I just found it interesting that it's enough of a complicated deal that it is apparently not understood well.

Back to what effect these types of mergers and acquisitions might have on what goods we will have available in the future.

[red-beard]

In general, I believe things are going to "Walmart", lowest cost, get by, stuff.

There will always be a market for upscale items and people willing to buy them.

[Zeke]

James, that is certainly correct. However, will there be companies that produce such quality items? That's the question here. How did you vote?

So far, low interest, but the votes in show pessimism.

[campbellcj]

For some time, perhaps the last 30 years, western society clearly has been heading down the path of instant gratification and apathy about the future. I agree w/ the above thought that there will always be manufacturers and service providers who cater to the "high-end" and professional (B2B) customers; however, the masses seem to buy into the "Walmart or Target is good 'nuff for me" syndrome.

Personally in most cases I'd rather wait until I can afford something that will function impeccably and last a long time, versus succumbing to a quantity over quality mentality, i.e., having tons of marginal stuff. I hate buying inferior crap!

[Moneyguy1]

Sometimes I wonder. I bought, about a year and a half ago, a Campbell Hausfeld compressor. I use it for little jobs, mostly brad driving and touchup/finish work, nothing heavy. Went out this week and plugged it in. Nada. Dead. R.I.P. I have written to the company to see what they are willing to do. Seems as if slogans like "built to last" are just that. Just like Kitchenaid "heavy duty" stand mixers with PLASTIC worm gears. We are urged to "buy American" but sometimes the hoped for quality simply is not there.

BTW..I am a registered pessimist. That way I am rarely disappointed since my expectations are so low to begin with. That makes me a happy guy.

[Z-man]

Recently I noticed that there are more and more 'non-Craftsman' tools available at Sears - the kinda tools that were available at stores like K-Mart and Walmart.

So it seems that Sears is already selling cheaper tools alongside the Craftsman tools. Hopefully, this will keep the Craftsman line intact and quality won't degrade.

There's always Snap-on.... (Hmmm - wonder if Walmart's looking to buy them out quietly...)

What tabs said is true - in today's disposable society, folks aren't as concerned about quality - "if it breaks, get a new one" seems to be today's mantra. It is sad that is what our society feels - seems there's less respect and pride for things. Too bad...

As long as our society continues to embrace the 'disposableness' of current things, we won't see an increase in quality, IMHO.

-Z-man.

[Moneyguy1]

Like at Office Max...buying a $99 scanner and then a $49 extended warranty........

SOunds like a real deal to me....

[Instrument 41]

I think that the quality issue, to retailers, is certainly about the bottom line, but not to the obvious. The retailers talked about in above post are more into the credit business and thats where their focus is. Craftsman tools is just another way to hustle another credit card, and thats the business they are courting. The mechandise is a means to an end. Name brand clothing stores are now about credit than merchandise. There will always be a market for higher quality merchandise, but it now requires much more to operate that it did, say 20 years ago.

The Walmart mentality is here to stay. I see this mindset, towards less customer service and cheaper quality products in the industrial sector as well. So now, its not about the relationship you have with that customer, or the bind you helped him out of at 3 in the morning, its about who has the lowest price.

[SteveStromberg]

Some tools you buy because you know they are disposable and therefore inexpensive will work.

Then there are tools that you know you will be using for a long time. That's when price is not a issue (these tools are never lent out) and they will last past your Grand Kids life time.

For those tools here is a great site.

Now just hold on to your wallet, cause your wish list will be three pages long

http://www.samstagsales.com/

[mikester]

I was optimistic and voted that things could change. We have to remember that all in all it seems that Sears is a stand up company. Recall that Sears does still take care of their employees in the guard.

Now...as far as Craftsman products go...what's the bottom line? They have a lot invested in the Craftsman brand name but knowing how profit is the ultimate factor in sales I do think it is possible things could start to change. The same way that WalMart changed...It used to be a tag line of walmart's that everything was made in the USA but to keep prices down they had to go where it was cheap to make things and regulations of any kind didn't complicate things - China mainly. Personally - I don't shop at Walmart - I think that it is bad for the economy but that's just my opinion. Sears - I buy craftsman tools from because they are inexpensive and of reasonable quality. They are also backed by a fairly generous warranty. I know I can take my broken screwdriver in and get a replacement no questions asked.

If things go down hill - I'll be shopping elsewhere I'm sure.

[techweenie]

Sadly, it is better for most large retailers to get the cheapest stuff (China), promote it at aggressive prices and replace it for the few users who break during the first year it than it is to buy and stock good quality and have the tools last. Sears is an exception, but it has brought in cheaper tools --as noted.

The worst part is that the big retailers are pushing out the smaller stores where quality might be a greater focus.

Now for the good news: the Internet makes it possible for a small number of specialty retailers to carry the very best stuff and sell it all over the world.

[Zeke]

Originally posted by techweenie


Now for the good news: the Internet makes it possible for a small number of specialty retailers to carry the very best stuff and sell it all over the world.

Good point , Bill. More and more, that's where I shop.