"Sigh"...
Old retail guy here...over 25 years...mostly in ceiling fan business from the early 80's.
Sold american made, (when they were made in america), Casablancas, Hunters, Emersons, Fascos, Fanimation fans and others, and more brands and types of imports than I can remember or count.
I have personally sold over 15 million dollars worth of product, (average ticket amount over the years $150-$250), managed several corporate stores and had my own retail store for over 15 years, up until 2008 when I got out.
In the early days though the early 80's, most fans were sold through lighting stores and some independent chains.
Some independent stores from the 70's into the early 80's were averaging 1-2 million dollars a year, retail.
Then Home Depot came into existence and became a presence in the early 80's..
Prices dropped, other dealers had to adjust to the new reality.
No more selling at or close to MSRP.
Sales volumes dropped.
Upheaval in the industry...but we adjusted.
Casablanca, a company that has been bought and sold several times over the years, were bought out by a very large company that decided to sell to Home Depot in the mid 80's.
Independent dealers rebelled, wholesale cost to dealers on the Delta II model were about $145, Home Depot's were selling them for $159, retail.
Want to know how they did that?
Home Depot imported cheap, paper overlay blade sets, (cardboard), to sell on those powerful motors instead of the much higher quality more expensive and stronger wood blade sets Casablanca supplied that those motors were designed to use.
Casablanca knew they were doing this, but they still let them.
Wobbling and other problems were common.
Independent dealers, who were still trying to sell fans with the correct blade sets at a higher price, were told by Casablanca that they shouldn't worry...the type of customer that went to home depot were not the same type that bought from their stores.
Like in real life most people don't shop around for price.
A joke.
Casablanca lost most of their network of independent dealers...eventually Casablanca pulled their products from Home Depot.
I tell this story to illustrate a point.
I don't know what the big fuss is about, just because Tesoro is now selling to Kellyco.
Unless Tesoro decides to drop their quality to match lower pricepoints, (see story above), which I don't see happening here at all, or give them huge volume discounts which would really uneven the playing field, there should not be a problem.
Kellyco and several other companies seem to play the "free with purchase" card.
"Buy this and in the package we will throw in for free all of this..."
This is a game, a sales tool.
Any right thinking logical person should know that the free stuff really isn't free.
If you talk to most dealers that do this, and ask for none of the "free' stuff, the price on the detectors magically drops.
That's fine, but personally I would rather not do business with companies that do this if I could help it...but that is just me.
I would rather deal with a good, knowledgeable local independent dealer than a far away one.
Knowledge, support, advice service is usually perceived as better, if those dealers are running their business correctly.
Even if I have to pay a little, but not a lot, more.
I had a store, I know the costs of doing business.
I sold fans in stores near Home Depot and Lowes stores for years.
I preferred to be as close to the big box stores as possible because it cuts down on the travel time for the customers that shopped both of our stores.
If they came to my store first and then felt they just had to shop a big box or any other competitor, after educating them a little, they usually came back to me.
If they went to the big box first and then shopped me, I always got the sale.
Even with employee discounts, I have sold to tons of Lowe's and home Depot and Lighting store employees over the years.
Superior knowledge, quality, professional advice, selection, and local warranty service were the reasons.
If smaller dealers are running their business correctly, there shouldn't be much fallout from this Kellyco deal.
In this day and age, when huge electronic, furniture, restaurant and other chains are closing doors, you have to stay on top of all the increasing costs to stay in business.
Especially the detector business, which is a niche business, after all.
The advantages to Tesoro with this deal could be greater name recognition and sales...which will enable them to continue to keep their employees working making their fine high quality products, and maybe even some more money for R&D..
We Tesoro fans are always looking for the time when they will use their magic and come out with the next great thing with that wonderful lifetime warranty.
This deal could be exactly the thing that can make this happen.
Wouldn't that be great?
So let's all just calm down a little and see how things shake out in the near future.
HH