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West Marine- I知 calling you out

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West Marine- I知 calling you out

Old 03-02-2013, 07:05 PM
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Default West Marine- I知 calling you out

I used to be an associate for several years and it was definitely the best job I ever had. Only reason I left is because I graduated from grad school and had to get paid so I could afford to pay back my loans and buy a boat.

I understand that you have to manage a business but when I visited the store today and was told that you could no longer price match because, and I quote, 努e lost 16 million dollars last year I thought damn! What is going on? Lucky for us you are publicly traded and it is easy enough to find out.

Well guess what, you didn稚 lose 16 million dollars, your net income dropped by 16 million dollars last year- (from approx $29 million to approx $15 million). Granted I understand that most of your associates are not MBA痴 and don稚 understand the difference but there are at least a few of your customers who are. Not wanting to stop there I took a look at your margins in the form of gross margin, well they did fall, I will give you that but, but by .5% which equates to approx $3.3 million against your sales of $675 million (up from $643 million last year). I知 no genius but pissing off so many customers over .5% doesn稚 seem logical, hell you probably already planned to make that up with price increases anyway, Lord knows I did that enough when I worked there.

So let痴 address your $16 million loss in Net income, well you drop down a couple lines on the income statement and you see that last year you took an $8 million dollar credit which inflated net income last year and this year you took a hit for $8 million bucks, that痴 where the $16 million went to when compared year to year, to the government, it wasn稚 that we took it from you.

That was the finance side, now I have to call you out on the marketing side, do you have any idea what you customer acquisition cost is? Do you know what every retailer in the industry is battling right now? Ever heard of showrooming? Well I can tell you Best Buy, Wal-Mart and Target have. It痴 the condition where people know they can better a better price online so they come to the store to touch and feel and then they buy online I attached an article below so you can read up on the phenomenon.

http://money.msn.com/top-stocks/post...8-7c10ea514329

Guess what their strategy is to counter this? Internet price matching!!!!!!!
You see the way you need to grow your business is by increasing your conversion rate and basket count. Do you know what is hurting you in those categories? Your inability to empower associates to close sales, you have way too many customers working walking out the door to check prices because they are trained to think that you are too high. Once that customer walks out the door your chance of closing the sale has dropped to zero, WM no longer provides value to them and the only decision factor on the purchase is price, which you 都truggle at.

I was working at WM when they started the price matching policy and I thought it was the best move they ever did, our sales increased during the recession at our store because I made it our goal to make every attempt to close the sale while they were there. Of course I heard a lot of 的 need to shop around but that is the opportunity to offer the price match, when you show the customer that WM can compete and offer service locally you all of a sudden are in a much better position. Maybe I did sell that HDS-10 at cost, but you know what, they also picked up the Navionics chip, hardware, sealant, side scan module, an extended warranty, and a WM gold membership. Plus they feel good about it and get to take it home today. If you can稚 make people feel warm and fuzzy about shopping with you the company will fail.

You have to remember something else about your business, nothing you sell is something that we need (well a bunch of THT弾rs will probably argue with me on that) but in all seriousness we are spending our kids college funds, inheritance, retirement savings, life savings, etc, on this stuff. We are passionate about it and the honest to god truth is we like having WM there locally and would like to continue to do business with you, but we will do so at a price point that will not break us or you.

I hope this message reaches and resonates with you. All the words above come from an ally, I truly loved my job at WM, the thought of leaving kept me up at night. I literally have been a customer/associate for most of my life and I am truly concerned about your future. Don稚 underestimate the power of the internet, look how that faired for banks with trying to raise their fees, yahoo taking away work at home employees, and makers mark trying to water down their products. If you ever want to get together with me and talk strategy and marketing please feel free to private message me through the site.

To all the THT弾rs out there, sorry for creating another thread on this subject but I had to vent. I just realized how long this thread is and that I spent the last hour compiling this data and for lack of better term essay for my former employer.

Tight lines!
-B
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Old 03-02-2013, 07:11 PM
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Well written. I'm sure some fact checking may come into play, but I believe most of what you wrote will turn out to be accurate.

Greed that may result in WM taking a much larger hit than expected.
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Old 03-02-2013, 07:17 PM
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Hope you sent a copy to the CEO.
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Old 03-02-2013, 07:20 PM
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I lost it when I saw the price of this "Universal Deck Plate Key".

$ 11.00 for that stamped out piece of cheap metal. I have seen bottle openers that took more machine work to create than this POS for 99 cents !





I would spend more money in that store if things were not grossly over priced.
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Old 03-02-2013, 07:20 PM
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Bubba......That is a great post. It's obvious you didn't waste your time in graduate school. Maybe you'll end up back at WM in a management position. they could use some policy makers who can see past the ends of their noses.
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Old 03-02-2013, 07:22 PM
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West Marine, Id like to hear your rebuttal to this. If you have one. I do not want to see you go down in flames either, always been there and hopefully always will be. P.S.......Hire this guy back WM. He seems to have a genuine concern about your company and knows it as well.
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Old 03-02-2013, 07:42 PM
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Good job

There is no way this change in policy will improve WM profitability.

I rarely went to West Marine prior to knowing about the price match. Once I learned about the price match I spent $3-4k per year at WM gladly and 3/4 of that amount was price matched. Plus I told friends and family and they too started shopping at WM.

For WM to think that killing the PM is sound business is stupid and near sighted.

By the way for those that stand behind them blindly stating customer service and brick and mortar knowledge....well I needed a specific thread pattern stainless bolt and called the Cape Coral store a couple of weeks back and spoke to TWO individuals that confirmed they had it in stock. Drove 20 miles...guess what the bolt was not even something they carried and two more knuckleheads that helped me once I got to the store were worthless they did not even know what a thread pattern was initially!!. Sorry but sad customer service and prices over retail??? Who the hell needs that! And better yet why pay for it!!
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Old 03-02-2013, 07:56 PM
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I know if you we're hired as CEO you'd fix it by giving all the assoc a raise and cut all prices to the cost from the vendor plus just enough to cover the rent and electric. Make that puppy a non-profit like some 504c or something, then everybody would love West Marine but you still would be undersold by drop shippers. That would be except the actual owners - shareholders- who actually own it and would sell based on the fact there is no sense owning and a non profit business. Since there was no profit there would no credit available for expansion or inventory credit lines, so stocking an inventory would be an issue - make a switch to marine styled folk art you could get on consignment maybe.

Sounds like you are off to a great career with MBA, btw in socialist countries they don't care about MBA's its just who you know.
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Old 03-02-2013, 08:14 PM
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Would all of you cheapskate whiners realize something crucial:

West Marine is not your Uncle. If you don't like West Marine prices for things, make your own.

Apparently, some won't be happy til it becomes East Marine, as in Far East Marine.
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Old 03-02-2013, 08:17 PM
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I need the cliff note version.
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Old 03-02-2013, 08:43 PM
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You did great leaving that sinking ship
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Old 03-02-2013, 08:46 PM
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Originally Posted by eggsuckindog View Post
I know if you we're hired as CEO you'd fix it by giving all the assoc a raise and cut all prices to the cost from the vendor plus just enough to cover the rent and electric. Make that puppy a non-profit like some 504c or something, then everybody would love West Marine but you still would be undersold by drop shippers. That would be except the actual owners - shareholders- who actually own it and would sell based on the fact there is no sense owning and a non profit business. Since there was no profit there would no credit available for expansion or inventory credit lines, so stocking an inventory would be an issue - make a switch to marine styled folk art you could get on consignment maybe.

Sounds like you are off to a great career with MBA, btw in socialist countries they don't care about MBA's its just who you know.
^^ What a stupid comment.
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Old 03-02-2013, 08:47 PM
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Originally Posted by jets View Post
I need the cliff note version.
Dude was told wm no longer does price matching because they're broke.

Dude finds out they're not broke.

Dude's upset.
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Old 03-02-2013, 08:56 PM
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I nominate Bubba60tackle for CEO of Westmarine!
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Old 03-02-2013, 08:59 PM
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You would think they make everything in the store and don't buy it from people that do make it, then they add a profit margin, which usually is a good thing. Why don't you guys pick some products and boycott them because they are asking too much.
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Old 03-02-2013, 09:03 PM
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Originally Posted by CaptSized View Post
Dude was told wm no longer does price matching because they're broke.

Dude finds out they're not broke.

Dude's upset.
Perfect.
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Old 03-02-2013, 09:03 PM
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Originally Posted by Reachport View Post
Would all of you cheapskate whiners realize something crucial:

West Marine is not your Uncle. If you don't like West Marine prices for things, make your own.

Apparently, some won't be happy til it becomes East Marine, as in Far East Marine.
Originally Posted by eggsuckindog View Post
Why don't you guys pick some products and boycott them because they are asking too much.

Use a dremel to make that "Universal Deck Plate Key", the $11 you save will help you buy one.

Dremel is an American brand of power tools known primarily for their rotary tools. The tools were originally developed by Albert J. Dremel, who founded the Dremel Company in 1932 in Racine, Wisconsin. In 1993, the company was purchased by Robert Bosch GmbH, and today it is a division of the Robert Bosch Tool Corporation located in Mount Prospect, Illinois. Dremel's rotary tools are similar to the pneumatic die grinders used in the metalworking industry by tool or moldmakers.



Last edited by Talos IV; 03-02-2013 at 09:17 PM. Reason: spelling
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Old 03-02-2013, 09:10 PM
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Originally Posted by Prolineguy View Post
Well written. I'm sure some fact checking may come into play, but I believe most of what you wrote will turn out to be accurate.

Greed that may result in WM taking a much larger hit than expected.

Actually, quite the opposite. he may be educated but he is not that smart...

there is a huge difference...
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Old 03-02-2013, 09:18 PM
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Originally Posted by jpaul72 View Post
Actually, quite the opposite. he may be educated but he is not that smart...

there is a huge difference...
OK, tell us why you have that opinion.

He's arguing the merits of internet price matching, the bane of some current B&M's.
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Old 03-02-2013, 10:15 PM
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A shiny new MBA and some seat time behind the cash register. Hell, why stop at CEO of West Marine - He's ready to run for Congress.
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