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How Does Your Inventory Impact Your Customers' Experiences?

Monday, May 21 2007

 Saturday, I stopped by my neighborhood Wal-Mart  to buy eight compact fluorescent (CFL) vanity globes  for a bath room and four CFLs suitable for a ceiling fan. When I arrived at the checkout, the cashier noticed that one of the globes in a three-pack was broken. I decided to pick up a three-pack at my nearby Lowes Home Improvement Store on Sunday. (Kudos to the cashier for noticing the breakage. I thanked her profusely.)

 

This Wal-Mart is not a super Wal-Mart (although they’re working on it) but I go there because they have a great selection of different types of CFLs. According to Fast Company Magazine, Wal-Mart teamed up with General Electric, which owns 60% of the residential light bulb market, to increase the supply of CFLs for consumers.

 

Sunday, I went to Lowe’s to pick up the vanity globes. But despite have an entire aisle devoted to light bulbs, only about 30-40% were CFLs. Most of those were spirals, suitable for lamps and other light fixtures. I left disappointed and disgusted because now I was forced to go to my last choice, Home Depot.

 

Lowes had no vanity globes, nor did they have the CFLs I needed for the ceiling fan. I also wanted an extra flood, but they didn’t have that either. The overall impression I walked away with is that Lowe’s was behind the curve on understanding the appropriate product mix. While they had plenty of bulbs, their selection was poor.

 

My suggestion to Lowes: Find a super Wal-Mart and check out their CFL inventory. Then copy it.

 

I left Lowe’s without buying anything. I went to Home Depot where I found everything I needed. I walked out spending $65.00.

 

Lowe’s should reconfigure its inventory to offer a wider selection of CFLs. Quantity wasn’t the issue. I noticed they had plenty of stock; the problem was their selection was too limited.

 

I can’t speak for their stores elsewhere. But I can tell you that, in their Austin, TX Brodie Lane store, they’re lagging behind both Wal-Mart and Home Depot.

 

Don’t take your inventory for granted. Seek feedback from your customers and be sure to shop your competition. Remember, GAAP (Generally Accepted Accounting Principles) does not measure the amount of sales you lose because you didn’t meet the needs of your customers.

 

Regards,

 

Glenn

 

In addition, make sure to read these articles:

Latest Comments in  posts

This is a letter I am sending to Lowes VIP's as soon as I can locate their respective addresses... For me I will shop every store but Lowes!
Dear Sir/Madaam:

My letter I believe to be from your average customer who spends a little extra from your store.

Based on my experience with your associates as well as the finance company you have chosen to represent Lowes, I will never make a purchase at your Brands Name if it can be avoided and each and every person I come into contact with will always be advised the same.

I thought he project card was a good idea in lieu of other options and so chose to have a few installations done thru ?Lowes?.

After the initial installation of a few doors and windows I had decided to add 2 interior doors before the project time frame ran out.
After waiting for a few weeks for a call from the installer, we were advised that the doors hadn?t been ordered at all and I had to drive in to the location to once again make the order. After having done this and a few more weeks having went buy we were advised that the doors were not ordered correctly and had to be re-ordered again. At that point I was still allowing the process to continue until I had received a statement showing that the orders had been applied to the project card twice.

So at that point I cancelled the order entirely and still I am not positive that all of the charges were withdrawn. (that was in itself $1334. in purchases your store lost)

Aside from that issue with your Bridgeton, Missouri store I chose to continue shopping at your establishment. I subsequently bought a Whirlpool washer and dryer $3201. Which had to be delivered twice b/c the deliver people damaged both on the first attempt and had dented the front door and scratched wood paneling on the 2nd delivery.

Sometimes I pay with cash sometimes debit or credit card. Weekly and monthly purchases included two 5 Gallon Primo Water dispensers and general necessities. Until now when GE Money Bank/ your lender has proved to engage in deceptive business practices.

The payment on the project card was suppose to be the same the entire time I was advised until I discovered ways GE (your finance company) nickel and dimes for extra fees!

In my case I discovered at the cash register at a Lowes location that I could not make a payment toward my account with my ?money market? visa logo?d check card. (which had at the time a balance of $9,000.) I could only buy things with my money market account card.

Which is all well and fine so I phoned GE and explained this surprise and that I would make a payment immediately via internet which I did and asked if they would waive any late fee that might be imposed and they did in fact waive the late fee. (payment was due on the 20st and posted May 23rd )

The subsequent month I made a payment on June 2nd for $225. (an additional amount above the minimum pmt of $198.) Unfortunate for me however the minimum payment had C H A N G E D to an amount of $233. Which I hadn?t noticed because I was looking at the comments section to verify that the $35. late fee was waived. (For MAY) Next to the comments section in the PROJECT SUMMARY area it has ?Fixed minimum Payment? as $198.

And the June statement had nothing about a late fee for June 20th so that much more interest is added until I receive the JULY statement where it indicated that I didn?t make my minimum payment and was being assessed with a LATE FEE of $35.

So when I phoned and spoke to GE?s representative, and then their manager, I was advised no recourse would be available because the balance was re-caclculated when the $35 dollar late fee was imposed in MAY. Even though it was credited the recalculated new payment was no longer $198. it was a new loan payment of $233. for that billing cycle. It?s not enough that the interest rate is at 17.99% even though the Prime rate is at 5% currently, they want to add any possible extra charge that?s available.

Due to the business practices that lenders like the one you have chosen to represent Lowes, the USA is having more credit issues than at any other time in our history. I cannot allow myself or others in good conscious to further that agenda, so your brand and its subsidiaries will be boycotted by my household and as many other households as I
can possibly educate. I am actually going to cash in a ...
By: Patrick G on 7/2/08 at 5:23 PM
Wow! I am so sorry to hear about your experience. I hope that you do contact Lowe's and they take steps to rectify the situation.

Good luck!

Glenn ...
By: on 7/3/08 at 4:56 PM
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