ShopsmithPower Pro Rebate Offer

backhertz · Post by **backhertz** » Wed Apr 03, 2013 6:16 pm

That's right folks. Looks like Shopsmith is offering a special on their direct order prices. If you buy a complete Power Pro headstock, you can get a $150 rebate card. If you spring for the DIY option, you can get a $100 rebate card.

One thing on the web site I noticed is the number of Power Pros sold has finally been upgraded to over 2,000. I figured it was about that.

So lets do some math. The $150 rebate card represents a 7.58% return off a new Power Pro headstock. The $100 rebate represents a 6.63% return on the DIY price.

If the demo/webinar prices are still $1842 for the new headstock and $1386 for the DIY upgrade, with the $1979 price you get a 6.9% savings. The demo savings on the $1509 price for the DIY is 8.64%.

I just got some disturbing news, so my numbers might be wrong. But I just thought I'd calculate the actual percentages and share.

I believe the best deal is a Lowe's Demo along with a 10% military discount. With the military discount on a Lowe's demo price, you can save 16.2% on a new PowerPro headstock or 17.1% on the DIY PowerPro upgrade. Add to that a Lowe's 18-month, 0 %-interest special; you are talking some really good numbers for the Power Pro and making it affordable.

Hmm?

terrydowning · Post by **terrydowning** » Wed Apr 03, 2013 7:42 pm

The hard part is finding a Lowe's demo in driving distance. (and the money of course)

ryanbp01 · Post by **ryanbp01** » Wed Apr 03, 2013 7:51 pm

I wouldn't know about the Veteran discount since it doesn't apply to me. More importantly, what was the disturbing news which may affect your numbers?
BPR

JPG · Post by **JPG** » Wed Apr 03, 2013 8:08 pm

I am guessing the 'news' was irrelevant to ss or the thread, but caused a lack of ability to properly concentrate on his calculating!

Hope the 'news' is not as 'bad' as when first encountered.

backhertz · Post by **backhertz** » Thu Apr 04, 2013 3:22 am

A good friend was hospitalized. Thank you. Kinda scrambled my mind. Just returned from the hospital and don't know much, but she is stable for now; admitted to the E.R. at 8 this morning. The hospital is a really good one, but they were backlogged. The squeaky wheel gets the grease, so we squeaked…

Another friend of mine worked for an arts & crafts store which grew like wild fire about 20 years ago. Why? The company's prices were/are rock bottom and no one can come close to them. The CEO told them that the secret to their success in one word: volume. The company continues to grow.

My neighbor was an electrician. He used to tell me of another electrician in a nearby city he grew up in. This other electrician over-charged every single customer of his. He had a simple belief: he could get away with taking advantage of each and every customer one time- and he did. The city was large enough that he never cared to have or needed repeat business. I think the guy retired & lives in The Villages in Florida. <smile>

Both the companies above made fortunes. So what is the secret to success? I would go with volume. Shopsmith has their business plan and I imagine are following it.

I wonder if Shopsmith extended the military discount price to all customers, would sales follow? The company is doing something right as they escaped the economic dagger that killed companies that were not as strong or had what Shopsmith has: a name.

Lowe's is able to partner with Shopsmith and still make money while offering a 10% discount on top of the discounted demo price and also offer 18 months of no interest. Is this a loss-leader model?

What if Lowe's was taken out of the picture and Shopsmith sold directly? I believe the PowerPro price could go far lower than the military discount price offered at Lowe's. Yet wait-Shopsmith does sell directly. But the direct Shopsmith price is higher than the demo's or webinar prices. Why?

It seems like this forum is a great resource yet to tapped; unless it already has been… How many active members are really out here? I believe the powers that be on Poe Ave know and know each of our spending habits based on our past spending history with the company. However, I also believe there are many Shopsmith owners who have never purchased a thing from Poe Ave.

Over the last 60 years, many Shopsmiths were sold from Shopsmith plus the ones made by Magna/Yuba that I believe are just large dust collectors. But what if the owners could be enticed to dust off their old relic and essentially rebuild it with all new parts because they are able to see the value in it? There are also many people here who might purchase a Power Pro but are too far from a demo or just can't afford the premium price.

Food for thought.

dusty · Post by **dusty** » Thu Apr 04, 2013 7:12 am

The Shopsmith PowerPro Rebate Offer is a good start but

I wonder what would happen to sales if Shopsmith's direct purchase price was lowered to equal or beat the Lowe's demo price with the 10% military discount thrown in.

I believe it is safe to assume that there is still some profit to be recognized even after Lowe's get their cut and the demo buyer recognizes his/her Lowe's and military discounts and the demonstrator gets his reward.

What would happen to sales if all of that was rolled into a simple "price reduction" for the direct sales units and made available to anyone of us who is dreaming about having a new PowerPro?

ss50th · Post by **ss50th** » Thu Apr 04, 2013 8:42 am

Sorry, kids. EDLP (every day low pricing) in consumer retailing just doesn't work without additional deals and couponing. Just ask Ron Johnson at JC Penny.

dusty · Post by **dusty** » Thu Apr 04, 2013 8:51 am

ss50th wrote:Sorry, kids. EDLP (every day low pricing) in consumer retailing just doesn't work without additional deals and couponing. Just ask Ron Johnson at JC Penny.

Does Wally agree. I thought "every day low prices" was the ticket there and every now and then he throws in an "over stock" or "buy by the case" special.

ss50th · Post by **ss50th** » Thu Apr 04, 2013 9:17 am

dusty wrote:Does Wally agree. I thought "every day low prices" was the ticket there and every now and then every now and then he throws in an "over stock" or "buy by the case" special.

Exactly my point. Those are the additional deals and they still run advertising flyers and instore markdowns. BTW.. Know where the money comes from on branded products? Their vendors' promotional funding.
Ron Johnson tried to run EDLP only with no additional event incentives and lost hundreds of millions of dollars in less than a year.

dusty · Post by **dusty** » Thu Apr 04, 2013 9:26 am

ss50th wrote:Exactly my point. Those are the additional deals and they still run advertising flyers and instore markdowns. BTW.. Know where the money comes from on branded products? Their vendors' promotional funding.
Ron Johnson tried to run EDLP only with no additional event incentives and lost hundreds of millions of dollars in less than a year.

OKAY These guys are experts in what they do so I have to believe marketing - but sales fluctuate for a lot of reasons other than the pricing scheme.

We have not made a purchase at JCPenney for many, many months and the reason for that has nothing to do with JCPenney marketing. We have simply tightened the belts. We shop mostly at close by outlets. Minimal travel is the objective. JCPenneys is not close by.