Too_Many_Tools wrote:
While I respect your opinion Steve, my experience parallels others.

The local shops are refusing to compete on pricing and the support is
not what you suggest it is.

I tried ALL the shops in my area when I was shopping for multiple
welders AND I was willing to pay extra for local support after the
sale.

They weren't even close nor would they consider adjusting their prices
when asked.

This attitude cost them thousands of dollars in lost sales to this
customer.

As for service after the sale if they are a authorized Lincoln or
Miller depot and they refuse to service an in warranty machine, they
won't be an authorized depot for much longer.

The reality is that anyone can buy a name brand welder like Miller or
Lincoln on Ebay for cheaper than they can get it locally.

The product is drop shipped from the factory and is fully warranteed.

If you have a problem with the welder, the local factory authorized
depot has to service it.

Between the Internet sales eating into the higher end product sales and
the big box stores selling the low end product, the local shops are in
a big squeeze. You can see in the increased price of consumables and
gas where they are getting their profits.

I believe the downside to this is in the future we will see fewer and
fewer local places that will be repair centers and as the industry
consolidation continues, fewer places to get gases. As for the later, I
am waiting for places like Home Depot and Lowes to offer gas refills in
the future.

TMT

I am sure the local shops are having the same problems that your local
independent auto parts stores have been seeing for decades:

1 - They do not have enough volume to buy direct, so they buy from a
distributor, adding a level of markup
2 - They make their money off industrial acounts for whom time is money,
and price is secondary.
3 - Even if they could sell an item cheaper to make a retail sale, they
see it as a disservice to the industrial customer that pays the bill.
4 - Your local shop has overhead - Lease payments, property tax,
payroll, utilities. The online sellers are probably working out of a
steel building outside of city limits, carrying little or no inventory,
and have no employees. Some of them don't even see the merchandise, it's
just a drop-ship deal. So they can get away with a razor-thin margin and
not look back. Can't do that in a local shop.
5 - Local shops probably make their money on gas first. Equipment and
supplies are secondary. Retail business is a distant 3rd, at best.

The problem for the local shop is that the manufacturers whose product
they carry allow the online guys to whore up the business. I'm sure it's
not much fun running a local shop and competing (or not) with online sales.

Or I could be all wrong - happens a lot
--
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Rex Burkheimer
WM Automotive
Fort Worth TX