Victorinox says goodbye to distributors

freedoom said:
I'm not trying to give him a hard time, i just don't understand why he doesn't get the need to site sources.
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Why does a reputable dealer with a long-time history here (and other forums) need to cite sources when ALL the man was doing was passing on information?

This is a community (private, of course:D) and as such there are times when newsworthy knife related info gets posted and is taken at face value depending on the poster.

In this case this was clearly an FYI, period

Geeze, what's next required citations for all FYI posts????

Oh, never mind:D
 
Quote "Is that because the "dealer" schedule requirements demand too high of unit minimums or to carry the "full" line and not cherry pick the fast movers or because pricing is so much higher than what distributors were willing to offer?

Of course, no doubt, if effective the result is going to be higher pricing to the consumer."
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Yes, most manufacturers require you purchase the entire line and the dollar committment is too large, if you wish to carry knives by a dozen or so manufacturers for the little guy. And some manufacturers require a brick and mortar store to become one of their dealers.
To answer your other question--manufacturers sell to "dealers" at slightly lower prices than I can buy their products from a distributor. I think when a manufacturer cuts off all distributor sales, they do so for control. A manufacturer cannot control me. They cannot force me to sell their products at a higher price than I might wish to. But when they market their product only through a dealer network and not use distributors at all---they can exert pressure and control over their sales outlets. If a dealer does not do what the manufacturer wants---they can threaten to cut them off...end their dearler agreement and/or make sure they do not receive any of "hot" model. By doing so, they can "control" that dealers marketing and pricing.
So, bottom line it seems to me they wish to control the retailer without being that retailer and without risking their capital and reputation. Something about that seems un-American to me. If manufacturers want to be in the retail business---let them jump in...if not, then let them concentrate on manufacturing an excellent product, cost effectively.

just MHO
Robert
 
Patriot Knives said:
I think when a manufacturer cuts off all distributor sales, they do so for control.......
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Oh it's definitely about control! Keeping a clean profitable network of distributors and dealers legally has always been a challenge. Manufacturers go through this expanding and contracting (cleaning up) of their distribution channels all the time, maybe it just hasn't been done as often in the cutlery business.

Of course web marketing has provided a whole new dimension and manufacturers look like their testing the waters to see how far they can go to control it. I bet many manufacturer's would like to go direct to the end user via the web and will once they figure out how to keep a brick and mortar presence in place at the same time.
 
I spoke to my rep @ Moteng, and this is what she said:

"As far as we’ve heard Victorinox has no such plans(to pull out from distributors). Our rep was down here a couple weeks ago for our show and was talking about what he would like to get going with us for this year."

Thanks, and Best Regards,

STeven Garsson
 
Knife Outlet said:
Unfortunately, Steven, your rep is out of the loop. Call Les Edelstein.
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I have no doubt that my rep can be out of the loop, Fred, she is young and somewhat green...but pleasant.

However, I used to work FOR Les Edelstein, or so he would have had me think, and I would more likely call Hannibal Lecter for a liver biopsy or Tiger Woods for marriage advice then I would call Les for ANYTHING...so I'll wait to see how this one plays out, and enjoy the two Vic black Climbers that I have on order in the meanwhile.

XXXXOOOOO, and Best Regards,

STeven Garsson
 
You'll be happy to know that he has hired someone else to run the business. I don't deal in personalities but I do think it was a good move on his part. I understand the value of inventory turnover as well anybody but distributors need to bite that bullet sometimes to be effective suppliers to resellers. The new man is currently in the process of moving to San Diego.
 
Knife Outlet said:
You'll be happy to know that he has hired someone else to run the business. I don't deal in personalities but I do think it was a good move on his part. I understand the value of inventory turnover as well anybody but distributors need to bite that bullet sometimes to be effective suppliers to resellers. The new man is currently in the process of moving to San Diego.
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I rec'd the e-mail blast concerning Mr. Kroll, thanks for the fyi.

Best Regards,

STeven Garsson
 
From my rep:

"Hello,

I’m writing to inform you that effective today the Victorinox Company (Including Forschner) are no longer going through distributors. They will be dealer direct only. Any backorders that are in the system will be fulfilled as we get our backorders. Any new orders will not be accepted. If you have any questions please let me know.

Thank you"

Best Regards,

STeven Garsson
 
Knife Outlet said:
You'll be happy to know that he has hired someone else to run the business. I don't deal in personalities but I do think it was a good move on his part. I understand the value of inventory turnover as well anybody but distributors need to bite that bullet sometimes to be effective suppliers to resellers. The new man is currently in the process of moving to San Diego.
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All I know is that if you have this type attitude when asked a question, I can only imagine your attitude if a customer asks a question. I have no need to do business with anyone like this.
 
Yup, same message I got approximately 16 hours ago:

Hello,

I’m writing to inform you that effective today the Victorinox Company (Including Forschner) are no longer going through distributors. They will be dealer direct only. Any backorders that are in the system will be fulfilled as we get our backorders. Any new orders that are not in stock or are special orders will not be accepted. If you have any questions please let me know.

Thank you,
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Good thing I found out now so I can leave it out of the new site :o It's a shame though, most store fronts I have visited never have the models I want and this will probably drive that stake further.
 
bucksforus said:
All I know is that if you have this type attitude when asked a question, I can only imagine your attitude if a customer asks a question. I have no need to do business with anyone like this.
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That's too bad but I highly doubt in this instance Fred will give a crap since his many remain loyal customers will remain his customers because factually he IS a great guy to deal with.

Luckily for you there's others to buy from and lucky for me there's the knife Outlet. Afterall, I only buy from honest, reputable Dealers who will go the extra mile for a customer and Fred has proven this far too many times to count. He truly is one of the nicest guys to buy knives from. Of course, if you were looking for one very specific model knife and the only Dealer that had it was the Knife Outlet and you really, really, really wanted it badly and the price was fair would you still maintain this stance???????????????????? Only a knifeknut knows:D

Of course there is always E-bay where sellers are friendly and always honest!!!:rolleyes:
 
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Knife Outlet said:
Effective this morning, Victorinox has dropped all of its distributors in response to complaints from Amazon.com.
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Victorinox dropped distributors, but I question whether it was in response to complaints by Amazon. My opinion is it has nothing to do with complaints by Amazon (or control) but everything to do with $$$. In today's economy, manufacturers are doing everything they can to improve profits. To achieve that end, many companies have hired accountants as CEOs. These bean counters have little concept of customer service / quality, but are proficient at pouring over spreadsheets endlessly until they squeeze every cent of profit out of a company. It's really simple, eliminating distributors puts more profit in the manufacturer's pocket ... instead of distributor price they get dealer price, an instant increase of 20-30% on their bottom line. Distributors have deep pockets that function as a "shock absorber" in the supply chain, but if manufacturers can manage to squeeze distributors out of the profit loop, they will.

Victorinox is not the only knife company to do this, BM, CRK, MT, et al, have done or are trying the same squeeze play. This tactic, err, efficiency, is not limited to the knife industry.
 
Chief, you need to understand that dropping distributors may increase margins since delaers pay more than distributors do. However, this move will certainly decrease volume. Dropping dealers does shift volume among the dealer group but it doesn't ever increase volume. It is not uncommon for a manufacturer to drop dealers and lose no volume in the end. In fact, that is often the case. However, If average prices increase,then volume will decrease. The basic laws of supply and demand apply. These actions are almost always motivated by appeasement, not by economics. Dealers threaten to drop the line and the manufacturers appease them.

Actually, the problem was pressure from Amazon. I won't tell you how I know because someone will ask me to prove it and I'm not going to do that. ;) You can accept the information or reject it as you see fit.
 
I just got this email from my distributor after inquiring about the situation: "Yes, unfortunately, that is true. Once we sell through on our existing stock, we will not have any more of their product."
 
Was told last week by SAK in Ct. that the local rep would be the one to qualify one as a dealer. Put in a call to the rep group a week ago with several follow up messages left and still no word from him/her. If SAK is going to leave it up to the reps to sort this out, good luck. In the "80s-90s my company was a nice six figure account with them. Distributors made it easy when it came time to downsize. I'll be damned if I am going to jump through hoops for some twentysomething pencil neck. This is a small world and there are many avenues around the world to buy Swiss Army knives.
 
Knife Outlet said:
Chief, you need to understand that dropping distributors may increase margins since delaers pay more than distributors do. However, this move will certainly decrease volume. Dropping dealers does shift volume among the dealer group but it doesn't ever increase volume. It is not uncommon for a manufacturer to drop dealers and lose no volume in the end. In fact, that is often the case. However, If average prices increase,then volume will decrease. The basic laws of supply and demand apply. These actions are almost always motivated by appeasement, not by economics. Dealers threaten to drop the line and the manufacturers appease them.

Actually, the problem was pressure from Amazon. I won't tell you how I know because someone will ask me to prove it and I'm not going to do that. ;) You can accept the information or reject it as you see fit.
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...and it was predictable once Victorinox and Wenger merged. They now have a near monopoly on the SAK. Sort of like Sirius and XM radio since they merged. Prices going up.
 
For clarification requiring requiring MSRP means that a seller must sell at the same price the manufacturer would. Forcing a MAP policy means a seller must advertise at a certain price but can charge less correct?
 
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