Thread: Borg?
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Duane Bozarth
 
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RonB wrote:

I have read a lot of grumbling about the giants coming in and running the
small lumber yards out of business. I don't see much evidence of that
happening in south central Kansas. What little hardwood they sell is well
above local hardwood dealers.

....

Definitely seen it in SW KS/SE CO/OK panhandle, however, where there
isn't the population density of even central KS.

It's possible to compete in larger markets but very tough in
smaller...trasportation costs are a prime killer as the volume problem
is exacerbated by rising fuel costs and the distance from suppliers.
Consolidation of distributors also is a difficulty.

Mead Best Buy did build a new store here last year but the smaller
surrounding communities which had nice little lumber yards have just
gone away since the HD in Garden opened as well two in Garden itself.
This was a trend in place before the HD opened, but it has been
accelerated...what is really move observable in the Wally-World and
other retail as the HD hasn't been around quite long enough to really
judge its long term effect, but imo it isn't all positive even now.
Star in Wichita, for example, has pulled all their western KS stores.

Truthfully, I don't much care about the size of the distributor per se,
if purchasing weren't so biased by their practices of "browbeating"
distributors who then (somewhat like in the case of medical services who
make up for uninsured and Medicare/Medicaid charges by higher costs to
the fully-insured) don't provide similar costs to independents.

Service can make up for some w/ some customers but not all and certainly
in smaller markets w/ lesser average income levels, the tendency to buy
cheap is overwhelming to most.