Retailers Take a Look at 2010
Our roundtable of regional dealers recently shared some of the strategies they used to survive 2009 and what their business plans entail for 2010. Here is more of their conversation, which can be read in full in Dealerscope's December issue:
Dealerscope: How much did TV ASP (average selling price) and margins fall last year? Did any of your competition deserve the blame for that? What did you do to offset the loss in margins?
Oates: I think that when companies are publicly held, like some of our competitors are, they’re driven to drive their top line. At some point, you have to be prudent and say, ‘At what price market share?’ Our job is to make a profit every day and not necessarily drive the top line; it’s a fine line you have to walk and one reason why public companies don’t fare nearly as well. Obviously, Circuit City was chasing that market share carrot and that strategy didn’t work for them. And execution at the big-box level certainly isn’t as good as you’ll find at a well-run independent.