Who Makes the Beast From HD

Discussion in 'Lawn Mowing' started by GrassesGuy, Apr 7, 2011.

  1. GordonwJackson

    GordonwJackson LawnSite Member
    Posts: 87


    I don't think this blog is the correct forum to review country of origin for every component on our mowers or our competitors mowers (a ZTR bill of materials is around 1,000 parts). If you have already read most of the discussion posted on this matter, you probably have a pretty good idea where most of the sub-components for almost all mowers are coming from. GXi is in line with others in this industry in this regard and the types of parts / components able to be used in mowers are only made competitively in 3 or 4 countries in this world. If you go one layer beneath the mower fabrication and assembly location, you can figure this out with a minimum of effort.

    In terms of retail margins, outdoor power equipment is a very competitive, high $ category at the large mass retailers. You may be shocked at how low the retail margins are on these products. There is no doubt, a local dealer that primarily sells power equipment could not keep its doors open living off of the same margin % that the mass retailers accept. In all fairness, the mass retailers don't need the higher margins required by a local dealer since their overhead (as a % of sales) is much lower. They quite literally want to make it up with volume. This is the way the marketplace has evolved. If you are not convinced, try to figure out how much profit margin there is on a $999 lawn tractor or a $279 pressure washer! This is the world of a mass retailer and is representative of their margin expectations for the category.

    Dealers must differentiate themselves with service. If they can, they will continue to do very well.

    Industry studies are published with detailed info. If you are really interested, you should look for one of these studies. Research data analyzes all the way down to $/sq. ft. of retail space for each product and category. Several studies show hardware store data versus OPE dealer data versus DIY mass retailer data. Most of these studies also dive into market share trends and demographic trends at each retail sales channel.

    Some of the data is very compelling and it clearly shows why John Deere, Toro and Ariens decided to sell their residential entry level products at mass retailers and upset their dealer network. If I recall, I think I saw one mass retailer went from less than 1% market share in residential OPE to a 34% share in 25 years, almost 100% at the expense of the OPE dealers and hardware stores. It is hard for anyone to ignore major shifts like that in the marketplace.

    There is similar data on the pro landscape / lawncare business as well. I don't see much discussion on this in this blog but analysts do track lots of details on this industry. I have seen lawn care data broken down by geography, demographics, customers (home owners versus multi-site dwellings versus commercial properties versus gov't versus cemeteries versus golf courses...). It is very eye-opening to see the trends from a top-level rather than a micro-level as discussed on this site (on this site each member talks about their local experience...what is actually going on in the industry overall is the sum of all the local experiences...so it is the sum off all the comments on this site).

    If you wish to test a mower, I suggest you make an inquiry at your local store to have one sent there. Ask at the Pro desk and they should be able to make arrangements if they think you are a serious potential buyer.
     
  2. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    Nice dodge! What is this polotics? You have been very informative thus far, why stop now? Walmart has openly admitted most products are now from CHINA and they use to pride themselves on US made products. We dont need to know every components origin just the frame, steel and fabrication of these major components.
     
  3. MOHUSTLER

    MOHUSTLER LawnSite Bronze Member
    Posts: 1,376

    LOOK OUT BAD BOY. someone is going to give you a run for the money!:clapping:

    GordonwJackson, does your company have a multi million dollar ad campaign lined up?

    All jokes aside, In todays market price sells. If you have a good way to put your mower infront of peoples faces besides home depot. ( nothing aginst them) but in my town of 75,000 people we have home dopot, lowes and a menards. And home depot is most peoples last choice on places to shop.

    You will have alot of sucess in this industry, id just do what I could to get your brand name out besides home depot.
     
  4. G. Ramey

    G. Ramey LawnSite Senior Member
    Posts: 376

    In the tiny print at the bottom of the Dek website it says "Dek heavy duty power equipment is a trademark of Gxi international,llc. Gxi has exclusive North American distribution rights for Dek branded power equipment from D and J power co. LTD, of China." I am in need of a walk behind, but The Beast is off the list now. Not because it's made in China, but because the distributor is being elusive about his product. In my opinion side stepping questions about where a mower is manufactured is the same as lying. GordonwJackson honestly admitting your mower is made in China will sell more mowers than beating around the truth will every time.
     
  5. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    Thank you, thats all I wanted to know and what I suspected.
     
  6. Lawn Dog2001

    Lawn Dog2001 LawnSite Bronze Member
    Posts: 1,027

    Gordon,

    As someone who followed the previous thread on this subject, and also followed this thread, I just wanted to take the time to thank you for taking your time to field questions. Your answers have been informative and appreciated. Also I find it refreshing that you have been able to come on here and provide information on your product without finding it necessary to continuously badmouth your competition the way Ive seen some other manufactures do.

    Im am hoping you can provide an answer to this one question, which I dont think has been answered throughly enough. Exactly how do you plan to warranty these mowers? Its one thing to offer a warranty. But if warranty service is unavailable, or not handled properly when theres a problem, then a warranty is just a piece of paper with words on it that means nothing. I can tell you from my own past experience with an Echo product that Home Depot ships off its warranty work to a company called ALLQuip which is simply ridiculous to deal with. I know some other people locally that have had problems with that company. Not only do they refuse to do work under warranty in almost every instance, they refuse to provide explanations as to why.

    So let me start by asking this, lets say 3 months into ownership of a Beast product a spindle goes. Would your company be willing to ship the spindle under warranty to the owner, for him to do the work himself? Would your company be willing to guarantee that work would be covered under the warranty, and set up the service at a nearby location? Will you be keeping track of authorized service centers to make sure products are being warrantied and serviced correctly? What steps will be taken in the case of a warrantied component that a company like AllQuip decides not to cover?

    These are questions that are important. It seems to me that its the new trend in commercial lawn equipment to find any excuse possible to not warranty a product. In a commercial lawn setting machinery is always going to take a beating, no matter how well maintained. Even if your machines fall $2000 less than the competition they still cost as much as $6000, and with that kind of an investment people deserve to have some piece of mind going in, especially with an unproven product.

    I look forward to hearing your response. I wish you good luck with your product. Even if it is being built in China, you are obviously creating a good number of jobs here in that states, and I feel theres something to be said for that.
     
  7. Lawn Dog2001

    Lawn Dog2001 LawnSite Bronze Member
    Posts: 1,027

    Reposting my question in the hopes it dosent get lost in the shuffle

    Gordon,

    As someone who followed the previous thread on this subject, and also followed this thread, I just wanted to take the time to thank you for taking your time to field questions. Your answers have been informative and appreciated. Also I find it refreshing that you have been able to come on here and provide information on your product without finding it necessary to continuously badmouth your competition the way Ive seen some other manufactures do.

    Im am hoping you can provide an answer to this one question, which I dont think has been answered throughly enough. Exactly how do you plan to warranty these mowers? Its one thing to offer a warranty. But if warranty service is unavailable, or not handled properly when theres a problem, then a warranty is just a piece of paper with words on it that means nothing. I can tell you from my own past experience with an Echo product that Home Depot ships off its warranty work to a company called ALLQuip which is simply ridiculous to deal with. I know some other people locally that have had problems with that company. Not only do they refuse to do work under warranty in almost every instance, they refuse to provide explanations as to why.

    So let me start by asking this, lets say 3 months into ownership of a Beast product a spindle goes. Would your company be willing to ship the spindle under warranty to the owner, for him to do the work himself? Would your company be willing to guarantee that work would be covered under the warranty, and set up the service at a nearby location? Will you be keeping track of authorized service centers to make sure products are being warrantied and serviced correctly? What steps will be taken in the case of a warrantied component that a company like AllQuip decides not to cover?

    These are questions that are important. It seems to me that its the new trend in commercial lawn equipment to find any excuse possible to not warranty a product. In a commercial lawn setting machinery is always going to take a beating, no matter how well maintained. Even if your machines fall $2000 less than the competition they still cost as much as $6000, and with that kind of an investment people deserve to have some piece of mind going in, especially with an unproven product.

    I look forward to hearing your response. I wish you good luck with your product. Even if it is being built in China, you are obviously creating a good number of jobs here in that states, and I feel theres something to be said for that.
     
  8. jason72g

    jason72g LawnSite Member
    Posts: 88

    Any chance we can get some videos of the mower in action?
     
  9. GordonwJackson

    GordonwJackson LawnSite Member
    Posts: 87

    I will try to answer all of the above questions. If I miss one, please re-post and I will try again.

    1. Beast mowers are fabricated and partly assembled in GXi's 100% owned factory in Liaocheng, China. All the China employees are on GXi payroll, all machinery equipment and tooling is 100% owned by GXi...if that is what is being asked. GXi is a US Company based in Clayton, NC. GXi is not a distributor or re-brander of the mowers. The mowers are completed currently in the USA. The reference you are making to Fuzhou D&J Power is for the DEK branded generator, not any mowers.

    2. GXi has been 100% honest and open about the location of metal fab and part assembly. Check out maybe as many as 15 posts on this topic on this site. There is no attempt to hide anything. The topic has already been very well discussed.

    3. The references to US content versus non-US content are referring to the actual content on GXi's mowers as well as others. The topic has been discussed in as much detail as the moderators on this site allow. Threads have disappeared for providing any more detail than described above. It is common knowledge the US imports much of the base mower components including steel, aluminum and petroleum based products. I do not believe that by % value the BEAST mowers have substantially different non-USA content than its competitors. The engines are assembled in the USA as are the hydros. Most of the engine and hydro parts on all mowers come from off-shore. No point going much further or the moderators will remove this thread.

    4. The BEAST brand is exclusive to The Home Depot. STANLEY branded mowers are available at Northern Tool and Sears. Expect to see some more options / brands / stores by spring 2012.

    5. Videos to be posted ASAP.

    I hope this helps. Please ask any more questions you may have.
     
  10. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,452

    Not to get off topic but, are you referring to "new" horizontally opposed Boxer engine? The one Toyota built for them. WRX's are just subcompacts with crap bolted on to attract younger buyers. Again just another example of creative marketing.
    Posted via Mobile Device
     

Share This Page