Westmarine is insane

[Stumble]

What irritates me about these WM threads is people seem to think that they just jack the prices up for fun, or because they can. In reality WM actually runs pretty thin margins. Sure they are expensive, but they have one of the slowest inventory turn overs in the entire retail industry. Their prices have to be high because their stores just don't sell very much stuff.

Fastenall for instance probably sells more bolts a day than WM does a month, so WM has to have a larger markup. That stove that's been on the shelf for 8 months, well someone has to pay for the inventory cost associated with keeping it in stock.

This doesn't mean you should shop there, but keep in mind what they are trying to do. They are not the low cost leader, but they do have the parts a very small market segment needs, and they have it in stock at all times. That necessarily leads to high prices.

[Island Time O25]

Originally Posted by Stumble

What irritates me about these WM threads is people seem to think that they just jack the prices up for fun, or because they can. In reality WM actually runs pretty thin margins. Sure they are expensive, but they have one of the slowest inventory turn overs in the entire retail industry. Their prices have to be high because their stores just don't sell very much stuff.

Fastenall for instance probably sells more bolts a day than WM does a month, so WM has to have a larger markup. That stove that's been on the shelf for 8 months, well someone has to pay for the inventory cost associated with keeping it in stock.

This doesn't mean you should shop there, but keep in mind what they are trying to do. They are not the low cost leader, but they do have the parts a very small market segment needs, and they have it in stock at all times. That necessarily leads to high prices.

Have you ever taken Economics 101? Of course they don't have a large turnover. With their prices why would they? Take my example of a simple Perko bow light posted earlier. I'm sure Walmart doesn't buy them wholesale at 1/3 of what WM is paying wholesale. And I'm sure Walmart's running costs per foot of store space are not that much lower than WM's.

There were a bunch of good reasons why little scurrying mammals took over while dinosaurs went extinct (for the most part, except the birds of course). That's exactly what is happening to WM business model. Most boat owners would love to give WM their business and stay as loyal customers. But WM is doing everything in their power to make sure that does not happen.

[pesarsten]

I am disheartened by all the negative comments regarding Westmarine pricing, they sell at the margin that permits them to continue a profitable business.

I am sure that when enough of you shift enough of your business to Internet sales, your local WM will suffer. Give enough time, they will close. I don't think WM is opening many new stores, but I have seen a number of stores in the St Pete area close.
It sounds great to beat up on the big bad WM, but if you do not support your local vendors, they will close. Just like all the Mom n Pop stores we lament over.

I probably have far less financial resources than most of you, and yet, I am usually willing to pay a little more for the privilege of getting what I need now, feeling and inspecting the goods before purchase, using the knowledge of their staff to assist me with purchase decisions, and being able to easily return goods that are not needed or to my liking. Those who use the "services" of WM to make their purchase decisions and then order from Internet sellers are effectively stealing the services that WM has paid for. If you need to save money, order online and be considerate enough to stay away from local WM stores.

As a good manager once said to me a long time ago, early in my corporate life, if the other guy is making a fair profit from you, your business will be important to them. If you negotiate the price too harshly and there isn't a decent margin, how important will your business be?

[Stumble]

Originally Posted by Island Time O25

Have you ever taken Economics 101? Of course they don't have a large turnover. With their prices why would they? Take my example of a simple Perko bow light posted earlier. I'm sure Walmart doesn't buy them wholesale at 1/3 of what WM is paying wholesale. And I'm sure Walmart's running costs per foot of store space are not that much lower than WM's.

There were a bunch of good reasons why little scurrying mammals took over while dinosaurs went extinct (for the most part, except the birds of course). That's exactly what is happening to WM business model. Most boat owners would love to give WM their business and stay as loyal customers. But WM is doing everything in their power to make sure that does not happen.

Actually Wall-Mart's operating costs per foot of shelf space is far lower than WM, it's kind of what's they are known for. Their entire business model is to get it as low as possible. Wall-Mart also has the buying power to pay far less than WM does, I doubt it's a third, but it's probably pretty substantial. Secondly Wall-Mart typically has the ability to return products to the manufacturer if it doesn't sell during their boating season, WM doesn't. They have to stock it until it sells and find a way to stay open 12 months a year selling stuff that in most areas is only in demand for a few months a year.

It just like any other low turn over, high margin retailers. They have to make up I need price what they can't in volume.

[zeehag]

Originally Posted by SVNeko

You can thank the FTC for letting them buy up BoatUS and putting every mom n pop chandlery out of business.

back in 1990, the motto of wm was : our goal is to put mom and pop marine stores out of busienss.
oops
i thought that a lil arrogant.
but the prices then were reasonable.
it did not take long to obliterate competition and raise prices unrealistically to beyond reason.
hahaha
i continued to support the mom and pop stores with reasonable pricing. hence my adoration of downwind marine and their 2 affiliates, as they actually HELP cruisers.

[Island Time O25]

Originally Posted by Stumble

It just like any other low turn over, high margin retailers. They have to make up I need price what they can't in volume.

But the lower turnover is of their own doing. Second personal example. A few seasons ago I was looking for a 4-5 step telescoping ladder to install on my home made swim platform. None of 4 WM stores within 25 miles of me had one in stock but I could order one from them for $259. I found one on Amazon for $130 incl. free shipping. Who do you think I bought from?

And that situation is exactly the opposite of what you are trying to convey. Now had they had one in stock and for a reasonable amount (compared to their online competition) say $150-170, I may have been persuaded to buy from them at a premium. Even if only for the sake of easy returnability. But not only they were twice (!) as expensive but they DID NOT have one in stock. And it was a 4-6 weeks order (WTF? if Amazon delivered for free in 3 days). So there goes your argument for their high prices.

[Sea Dreaming]

Originally Posted by CSY Man

Easy, go to Walmart then.
West Marine provide health insurance to their employees and better than minimum wage.
Not sure Walmart can match that.

You make a valuable point. I don't really want to get off topic, but very often folks shop for "bargins" but complain about the loss of jobs is the US. We simply don't want to pay what a thing really costs with the desired fair wage and benefits added to manufacturers costs. Basically we want something for nothing.

[Rhapsody-NS27]

Originally Posted by WSMFP

People thinking they have to buy a marine battery from a marine supply store. Nope, Autozone has them for half the price.

Speaking of batteries, I saw somewhere the same Group 31/27 batteries at West marine is also sold at Sam's Club. So when I got my last Group 31 AGM, WM was listing it at $310, but the same battery, with a different label, was priced at $180 or so at Sam's Club.

[Lepke]

Not to defend Westmarine, but they're no different than most local marine stores. Many online stores have no public place of business, so their costs are different.
I owned a marine yard and can still buy from distributors. But, if they have what I want, Discount Marine Supplies offers quality boating supplies & marine supplies for boaters and sailboat owners. has a better price. And with several warehouses across the country, I usually get ground shipments in 2 days. In the past, I have read unhappy reports on service, but I buy thousands of $ and never had a problem.

[bletso]

Same thing happened to the SCUBA industry. To some degree kind of couldn't change the business model with the times. There is a reason there are roughly 5000 fewer Scuba shops nationwide than in the 90's. To make it worse, customers would visit the local shop, try it on, scope it out, then go to an online vendor who didn't have a store front. There is a reason that true online vendors can sell cheap. Of course then divers would complain because gee whiz, I can't find a shop to sell air or repair my gear.

It is a cycle of sorts, find a better mouse trap, put the competition out of business, then something else changes and now you are gone. Big box stores put the 'mom and pops' out of business, now the internet is putting huge pressures on the big box guys. What comes next is a guess, but things will change.

Yes, to a large degree it is because most put price and quantity ahead of quality and personal relationships you only got from a well run 'mom and pop' store. The price I have noticed is a kind of uniformity in goods offered. You want something a little different, well it isn't available anymore. You want to do what! Fix it, no can't be done, buy another one.

[pesarsten]

Originally Posted by Island Time O25

Have you ever taken Economics 101? Of course they don't have a large turnover. With their prices why would they? Take my example of a simple Perko bow light posted earlier. I'm sure Walmart doesn't buy them wholesale at 1/3 of what WM is paying wholesale. And I'm sure Walmart's running costs per foot of store space are not that much lower than WM's.

There were a bunch of good reasons why little scurrying mammals took over while dinosaurs went extinct (for the most part, except the birds of course). That's exactly what is happening to WM business model. Most boat owners would love to give WM their business and stay as loyal customers. But WM is doing everything in their power to make sure that does not happen.

I'm sorry to hear that you find Walmarts business model so attractive. I personally am sorry to hear that company's that pay absolute minimum and have employee education classes in obtaining poverty benefits and, have perfected the use of part time jobs to avoid higher costs. ( read that as benefits ), is regarded as the evolutionary winner. Their enormous buying power permits them to dictate return policies to the manufactures and their purchase price.
But, they do allow the homeless to camp in their parking lot overnight!

Walmarts and Web based sales companies overhead costs are very different from WM , a specialty , seasonal , boutique goods retailer.

I guess I just like dinosaurs, and butchers, shoemakers, farmers markets, local bike shops, local restaurants, ...................

[PassportJoy]

Buying from West makes good sense when you take into account the available extended warrantee and the ease of a return & replacement. Fresh water or wash down pumps are good examples. Their rigging shop is also reasonable. They have changed over the years and I now call them "Boat-Bath & Beyond"

[Time Theory]

I thought about applying to work at West Marine part time. Seems like a good company. They have some very good discounts for employees..Sorry for the thread drift.

[Stumble]

Originally Posted by Island Time O25

Have you ever taken Economics 101? Of course they don't have a large turnover. With their prices why would they? Take my example of a simple Perko bow light posted earlier. I'm sure Walmart doesn't buy them wholesale at 1/3 of what WM is paying wholesale. And I'm sure Walmart's running costs per foot of store space are not that much lower than WM's.

There were a bunch of good reasons why little scurrying mammals took over while dinosaurs went extinct (for the most part, except the birds of course). That's exactly what is happening to WM business model. Most boat owners would love to give WM their business and stay as loyal customers. But WM is doing everything in their power to make sure that does not happen.

Actually no I have never taken Econ 101, I have taken enough 3 and 4000 business management, finance, and economics classes to have a minor in finance.

While you seem to have a basic grasp on the price/demand curve, you seem to have missed the follow up classes on the Profit Maximization Formula, Inventory Turnover Rate, Seasonal retail analysis, purchasing power discount analysis etc.

By any metric trying to compare WM to Wall-Mart is just silly. Wall-Mart and WM are on absolutly opposite sides of the retail market, one sells lots and lots of cheap stuff with short shelving times primarily based on price. WM sells small numbers of high margin items with with large markups in order to cover their extremely long shelving times and high inventory costs.

It's like complaining about why greyhound and Delta have such vastly different prices for a trip from New York to Portland without recognizing that one gets you there in hours the other in days.

[DeepFrz]

Have you ever taken Economics 101? Of course they don't have a large turnover. With their prices why would they? Take my example of a simple Perko bow light posted earlier. I'm sure Walmart doesn't buy them wholesale at 1/3 of what WM is paying wholesale. And I'm sure Walmart's running costs per foot of store space are not that much lower than WM's.

You didn't take into consideration what Stumble said about wages and other benefits. That's the trouble with economics 101. It has no consideration for people.