Home Depot and Dewalt parting ways?

[Mike OMelia]

There is, of course, a long lasting thread in the D&D forum about the DW735 planer being clearanced out at many locations, most seem to be west coast. I spoke to someone at Lowes about this. They said that in a recent meeting with Dewalt sales folks, they were told that Home Depot was being dropped as a Dewalt distributor. Seems Dewalt did not like HD bringing in Makita and Milwaukee. Lowes will soon be the number one account for Dewalt. I guess the implication is they had better not bring in Milwaukee. Anybody else heard anything about this? Is this Lowes guy full of it?

Mike

[Josh Reet]

I've replied to this in the DW735 thread. But here's why I'm skeptical:

-HD is one of the two biggest hardware outlets in the USA. Even with Makita and Milwaukee, HD likely moves a LOT of dewalt stuff. It would not seem to be a good idea for either party to end the relationship.

-If this were really happening, I think we'd be seeing much more stuff being sale or clearanced priced. One clearance planer (and only in the markets where 2 dewalt planers were stocked) doesn't really indicate anything on the scale of ending a dewalt/HD relationship.

-Someone at Lowes giving "insider" news about something going on at HD seems pretty suspicious to me. Particularly when it involves something as big as this decision would be. HD and Dewalt parting ways is one of those things that would have to be decided by a boardroom and by guys who make more money than any of us. I doubt that the news would be all the way down to a few guys at a particular lowes store sales meeting without being everywhere on the internet.

But again, stranger things have happened. I'm just pretty skeptical about this one at this point.

[Bob Haskett]

I've replied to this in the DW735 thread. But here's why I'm skeptical:

-HD is one of the two biggest hardware outlets in the USA. Even with Makita and Milwaukee, HD likely moves a LOT of dewalt stuff. It would not seem to be a good idea for either party to end the relationship.

-If this were really happening, I think we'd be seeing much more stuff being sale or clearanced priced. One clearance planer (and only in the markets where 2 dewalt planers were stocked) doesn't really indicate anything on the scale of ending a dewalt/HD relationship.

-Someone at Lowes giving "insider" news about something going on at HD seems pretty suspicious to me. Particularly when it involves something as big as this decision would be. HD and Dewalt parting ways is one of those things that would have to be decided by a boardroom and by guys who make more money than any of us. I doubt that the news would be all the way down to a few guys at a particular lowes store sales meeting without being everywhere on the internet.

But again, stranger things have happened. I'm just pretty skeptical about this one at this point.

I agree with everything above. I think the Lowes guy was just looking at making an excuse for the insanely low clearance price. I have been wrong plenty before, but like Josh I am just skeptical.

[Jeff Duncan]

One thing to keep in mind is DeWalt is pretty small, their parent company supplies a whole lot more HD merchandise. DeWalt is just one small piece of the pie.

Also Makita and Milwaukee have been sold at HD for the close to 2 decades I've been shopping there...probably more. So I'm guessing he's full of it

JeffD

[Alex Leslie]

Clearance prices indicate a model change in many cases. Perhaps DeWalt will be introducing a new model in the West, first.

[glenn bradley]

Is this Lowes guy full of it?

Mike

My Lowe's sells Milwaukee.

[Myk Rian]

HD is clearing out the DW735 planers to make room for the cheaper DW734. That's all there is to it.
How the heck do there rumors get started, and why do people believe everything they hear.

[Steve Mellott]

I spoke to the Dewalt rep in the HD store. He advised me that HD was no longer going to sell the 735 because it was too expensive for most of the HD customers. HD believes the 734 price point is more in line with their customers.

Steve

[Peter Kuhlman]

Still tons of Dewalt at our local HDs but Bosch has almost totally disappeared. Only Bosch products left are the Colt router and a hammer drill on sale.

[Roger Jensen]

Dewalt is owned by Black and Decker, and I imagine neither side would jeopardize that relationship. I agree with the folks saying they are simply doing to align tools (and prices) with the average customer at HD.

[Kent A Bathurst]

Ya know, Steve - this is just dead-on. HD + Lowe's are constantly in a "race to the bottom" against each other. That means you can get OK products at good prices, but you can struggle to get really good products, if you are talking about something that is not a commodity.

Copper plumbing elbows? - Excellent. Plumbing valves from China-Korea-Vietnam? - Uhhh - nope - pass. 2x4 Studs, PT lumber, QuikCrete, deck screws, garden hose, flats of impatiens or begonias - you bet - Excellent source - we have over 1,000 lb of mulch from them in our gardens. Birch ply? - well, depends on what you want to use it for, eh?

So, Dewalt moves from the 735 to the 734 at The Borg to have a lower-price item - OK - fine - good for both Dewalt + HD - it will look good in the Sunday paper advertising supplement. I have spent many many many $$ at both places over the years, and will continue to do so, and I think they do a VERY good job at accomplishing what they want to be, but just because there is a "Dewalt planer" at the store does not automatically mean it is worth your $$ - ya gotta know what you are shopping for.

Whew - sorry 'bout the rant. I learned early, and I learned the hard way - in a lotta cases "you get whatcha pay for". Funny that my Dad was correct all those years ago.

[Carroll Courtney]

I heard that HD has close alot of their stores in the Califoria (big state)area and doing the same in the Indiana area as well.Is there trouble in the big orange house????Carroll

[Jason White]

I would think it's total BS. DeWalt needs Home Depot, not the other way around.

Jason

There is, of course, a long lasting thread in the D&D forum about the DW735 planer being clearanced out at many locations, most seem to be west coast. I spoke to someone at Lowes about this. They said that in a recent meeting with Dewalt sales folks, they were told that Home Depot was being dropped as a Dewalt distributor. Seems Dewalt did not like HD bringing in Makita and Milwaukee. Lowes will soon be the number one account for Dewalt. I guess the implication is they had better not bring in Milwaukee. Anybody else heard anything about this? Is this Lowes guy full of it?

Mike

[Rick Fisher]

Up here in Canada, the power tools companies are trying to steer the retailers..

The Tool stores are pushing the 735 for example, the retail chains are having the 734 pushed on them.

The same thing is happening with Circular saws etc..


Home Depot is a big hitter, but they are also a pain.. Each store my buy 4 or 5 DeWalt 735 Planers.. So DeWalt has freight costs to 1000 shipments.

A tools store will buy 50 -100 DeWalt Planers.. So the freight cost could be way lower..

If Home Depot isnt making the margin they want on the 735, and DeWalt isnt providing the margin, Home Depot will kick that sku out of the system.. in this case, DeWalt probably just let it happen..

A classic example of this is in the building materials.. A Home Depot will sell batt insulation, but nowhere near the volume of the stores selling to the insulation contractor..

[Dave Lehnert]

I heard that HD has close alot of their stores in the Califoria (big state)area and doing the same in the Indiana area as well.Is there trouble in the big orange house????Carroll

I do not think it is a sign of trouble. They are just getting rid of under performing stores. A lot of that going on now.