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so about a 4 months ago I bought a sears cordless saw-drill set their pro version. 5-1/2 in saw and 3/8 drill 18 volt. I has served me well as I am building my own house. I burned out the saw about a month ago and they replace the whole set no quetions ask( I bought the 2 year extended warentee I think It was 20 bucks). this weekend the variable speed on the drill quit working. took it back and they said that they dont make mine anymore so I get the next model up 18 volt 1/2 inch pro. this drill costs as much alone as I paid for the drill-saw combo plus the drill uses new style batteries so now I have 2 bats for the drill and charger plus two bats for the saw plus charger.
how the heck do they make money?
sam
(I know I will get the sears craftman (yeck) comments)
Replies
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Well, there are a lot of ways they make money, here are a few:
1) a friend who worked in the Sears tool department a few years back told me that their warranty costs were below the industry average: for every tool that saw tough enough usage to break within warranty, dozens are only used once a year.
2) take a look at the prices for drill bits, biscuits, screws, blades, sand-paper, ... - it's the modernization of the King Gillette theory (which Bill Gates cheerfully adopted BTW).
3) Once you're in the store, you'll be wanting to buy paint, brushes, jeans, maybe new tires for station wagon, oh, and the fridge is beginning to act up - they don't have to make a profit from every transaction.
*Sears makes more money on their financing operation than they make in all their retail.I think that they could close all their stores and become a bank and still make money, but that's not what a retail company does so they keep the stores.Its like McDonald's making most of their money on the softdrinks (the hamburger sales don't keep the lights on becuase the profit margins are too small).
*Sheer volume. The cost of making their tools is far less than the profit margin. Like Phil said, for every one returned, dozens more are still out there.James DuHamel
*Ya Sam, I can see how you are confused. It is not possible for a company to stand behind their name, and reputation, and make money…
*They put the squeeze on their suppliers too
*Sears; Hard to say it without profanity. Bought a shop vac & 2 weeks later it failed, brought it back and they wouldn't warrantee it because, 1 I didn't buy the extended warrantee 2 I used it to pick up dust from a sheetrock job. Don't you know that's not covered by warrantee???!!!!???... Wanted almost $50.00 for the repair and when I argued they gave it to me for $10.00 and then made a comment in my credit record about an uncollected debt. Few other examples as well Most of my Sears stuff has gone away, light duty crap!
*Warranty or warrantee?....Warrantee is the holder of a warranty.just had to fix up my proposals...near the stream,aj
*Yea a good bud of mine bought a "Contractor Series" ( I think its what they call it, its the heavy duty 12" one) planer from them and it went T.U. in about 2 weeks he brought it back and they told him because hes a contractor they wouldnt warranty if , he said he bought the extended warranty but because he was a contractor it wasnt covered.
*No offense, but I find that extrmely hard to believe. The "contractor use" myth is just that.I have been buying and using Sears tools for most of my life, and the salesperson that deals with me knows I am a contractor. So does the store manager (I've done work for them). The contractor issue has never come up. Also, businesses that I have been employed by in the past have used, destroyed, and returned tools (both hand and electric) that were purchased under their company name. The fact that the tools were purchased for, and used for commercial use was never an issue. According to the local store manager, Sears does not now, nor have they ever had a "clause" that excludes commercial use of their tools for warranty purposes. The warranty on a power tool is not anything near the warranty on a hand tool. Whether they replace it, repair it, or refund your money is entirely up to each store. If the allotted warranty time has passed, then they will not honor the warranty in most cases. The purchase of an extended warranty should cover the issues, except that the extended warranty does not cover a whole heck of a lot.A lot of how they handle these issues is entirely up to each store manager. It is possible that this particular manager was a peckerhead.Just an opinion...James DuHamel
*Not a verbose as james...but...go to a different store or a different employee with papers and submit.near the stream,ajVery happy with their tape measures and their pancake compressor.
*James:Your points about Sears were right on except you forgot one very important point - parts/service/technical advice. Some examples:I wanted a small router - really a 1/4 hp for veining work, trimming, etc. but the old 1/4 hp machines are no longer made. So lots of folks are buying laminate trimmers - but which one? Porter-Cable makes several models and it was only after a discussion with their technical folks that I concluded the model 310 is for me. At Sears, it's the luck of the draw - you could get an experienced salesperson or you could get a pimply-faced teenager. And there is no-one to call (there is but it is a lot of work because you have to work through the home office to get to the actual vendor).Service is performed by the same crew who works on lawn mowers and various asundry other items. You have no access to a "factory person" as you would with mainstream tools.And parts - when was the last time you ordered a part from Sears? I had a portable power plane - about 8 years old - and I needed new blades. I called, ordered them by phone (Sears stores only stock current items for most tools) and get 2 sets of blades for - are you ready - $98! I found out that the blades are $39 a set and postage/handling is not based on weight (they were shipped in a small mailing envelope) but on the cost of the item. The cost of the blades was only $29 less than the overall cost of the machine! I returned the blades, sold the plane and got a Porter-Cable where the blades are less than $20.If I employed a sub-contractor on a job and I saw that same power plane, I'd be vary wary of the sub's overhead charges - absorbing high cost parts and service don't do customers any favors particularly when they end up paying for it!
*Ed,i Service is performed by the same crew who works on lawn mowers and various asundry other itemsNot at my local Sears Service Center. In fact, the lawn and garden repair center is about 2 miles away from the main service center. It rivals their automotive shop as far as equipment and size goes.The main center repairs electronics, appliances, and tools in different areas of the center, with different employees.I have never had to have a tool repaired (knock on wood), and I very rarely buy Sears replacement parts. Usually, if it is just a switch or cord, I buy them through a local tool repair facility. If it is something major on a small power tool, I usually chunk it and buy a new one. By the time I have a major problem, it is a very old tool. I bought my power hand planer blades through my local tool repair center for around $17 a set. All they did was take one of my old blades, and match it up. Don't get me wrong, I do not own Sears tools exclusively. I have a variety of tools, from a variety of manufacturers. The Sears tools that I do have serve me well, and have lasted a long time with a fair amount of abuse. I avoid the homeowner versions, and buy heavy duty Industrial rated tools. James DuHamel
*James,I think it is up to the store manager. It does vary from store to store. I dont think they have a posted "company policy" regarding this contractor clause. im not sure who exactly my pal delt with but I do know he quit buying craftsmanower tools for that reason.
*If I had to deal with a store manager like that, I'd quit shopping there too.James DuHamel
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so about a 4 months ago I bought a sears cordless saw-drill set their pro version. 5-1/2 in saw and 3/8 drill 18 volt. I has served me well as I am building my own house. I burned out the saw about a month ago and they replace the whole set no quetions ask( I bought the 2 year extended warentee I think It was 20 bucks). this weekend the variable speed on the drill quit working. took it back and they said that they dont make mine anymore so I get the next model up 18 volt 1/2 inch pro. this drill costs as much alone as I paid for the drill-saw combo plus the drill uses new style batteries so now I have 2 bats for the drill and charger plus two bats for the saw plus charger.
how the heck do they make money?
sam
(I know I will get the sears craftman (yeck) comments)