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Thorn in the side

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  • Thorn in the side

    Ridgid looks at us as a thorn in their side. They sold themselves to us as being top of the line. Now they are making decisions to increase the profit margin.

    I doubt they want to come out and say we have made a business decision to make cheaper equipment to serve the mass demand at HD. Many of HD's customers purchase on price not quality.

    Ryobi does not advertise our tools are not up to the quality of PC, Delta, Jet, etc.

    I am coming to the realization that Ridgid has changed it way of making tools and maybe not for the better in quality but for profit.

    Hope I am wrong. We are probably the minority in their total sales.
    SCWood

  • #2
    FWIW, I never looked at Ridgid as top of the line. I looked at the tools as being well made and affordable. I can understand business decisions, but get upset when no statements are issued to inform the public.

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    • #3
      Actually, they made a decision to get out of the stationary woodworking tool market altogether. This what the Emerson statement says.

      They have not made a decision to make cheaper equipment, they have made a decision to make NO equipment.

      To fulfill whatever contractual commitment they have with HD, and to "protect" the Ridgid name for their other product lines, they are looking to contract OTHER manufacturers to supply Ridgid-branded product. Also, to protect the HD obligation, they are making arrangements for someone to provide parts (apparently Order Tree).

      If the brand name went on a Mao Shan or similar offshore product, it's gonna be a pretty good product, even though it's a totally different animal. On the other hand, they probably have a lot of tooling that they could peddle to a manufacturer who wants to keep cranking out the Ridgid designs.

      Whether the parts arrangements are totally satisfactory to the existing customer base is not as important (from their point of view) as seeing they don't leave HD holding the bag.

      Order Tree's web site looks like that of an undercapitalized box house, but maybe they'll spruce up their web presence if the bucks follow (maybe Emerson will front them some funding for the site).

      I am still waiting to see what to buy.

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      • #4
        tooling, if you mean design, well lets face it, ridgid were providing designs that were not all that different from the rest of the market, but with a lifetime warranty.
        If you mean the equipment to build the saws, planes, lathes, etc... guess what. Sears and Emerson are in a legal battle over who owns that equipment. As I read it, Sears leased/lent emmerson the equipment to build these tools quite a few years ago, at the end of that contract sears was given back about 1/4 of the tools. When they actually went on site to take back the remainder, there was nothing there. The law suit followed. Now at that point I can't imagine Emerson ever getting any contract back from sears, regardless of what Ryobi does. If there is any truth to this it would explain a part of this decision, and shed enough light of the ethics of Emerson management to help guide any purchasing decision based on promises, warranty or suggested quality. I hope Sears is just playing a game, but it does seem to me to be relevant.

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        • #5
          Finally, someone gets to the heart of the problem. Sears was told the table saw tooling was destroyed, and then suddenly 2424s and 3612s showed up looking exactly like the old Craftsman designs...
          Considering the low volume of sales, it is easier to exit the woodworking world, then fight Sears in court. (Heck, I think Sears would win anyway...)
          \"Is it Friday yet?\"

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          • #6
            Well this is certainly a new wrinkle on the recent events. No wonder the Sears saws looked just like the Ridgids...it was their design to begin with huh?
            Kelly C. Hanna<br /><a href=\"http://www.hannawoodworks.com\" target=\"_blank\">Hanna Woodworks</a>

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            • #7
              The more that I think about it, this explaination makes the most sense to me.

              I don't know what the profit margins were, but Ridgid just finished redesigning/improving many of their products within the last several years: BS1400 , DP1550, TS3612, and the new MS1290. They also started receiving quite a few awards, great reviews, etc. Why would they suddenly decide to get out of the WW market?
              Mark

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              • #8
                It's possible that the Sears/TS debacle was a contributing factor to the exit decision, but more likely was the view, that no matter what they did, there would be no net margin in this business.

                You can't run a business, and especially a NYSE listed business, with continual losses. Most of the WW'ing line is built for them in factories in China & Taiwan. The manufacturing margins are not theirs. They have to rely on the margin they make between factory and retailer. With the end user price set because of market demand/forces, and HD requiring their decent cut, there was no margin left for Ridgid/Emerson.

                To many fingers in the pie! Remove one of the fingers, and hey voila! becomes a running worthwile business again.

                David

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                • #9
                  Ridgids competitors make their goods in asia also, yet they make a profit. If ridgid is losing money on their ww tools it is because of bad management. Bad management made the sole reseller agreement with HD. HD has no interest(for some reason) in merchandising the ridgid line. They do ryobi quite well. Ryobi is their house brand(like craftsman).Why the difference? I believe that HD does not want Ridgid sold elsewhere because HD would lose other sales also. So HD does everything it can to get ridgid out of business. Why would I contract to be a sole reseller for a product and then not promote and sell that product knowing that it can't be bought anywhere else?
                  www.TheWoodCellar.com

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