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  1. #21
    Join Date
    Apr. 4, 2010
    Location
    yonder a bit, GA
    Posts
    3,408

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    Siiiiiiiiigh
    Lord I hope they have that saddle pad i want in time!

    I'll be at work for the whole day so im setting an alarm to remind me... ha!
    (A decidedly unhorsey) MrB knocks over a feed bucket at the tack shop and mutters, "Oh crap. I failed the stadium jumping phase."
    (he does listen!)



  2. #22
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
    Posts
    15,984

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    Quote Originally Posted by hunterjumper21 View Post
    I love all these Horze Sales just as much as the next person, and have spent wayyy to much $$ overt past several weeks on them. I am however starting to wonder about a couple things. How and why are they selling off *almost all* of their inventory at 50-80% off. I mean we're not talking about just $20.00 t-shirts here, but $100+ blankets, outerwear, etc. I'm certainly not complaining, just curious as to how they are making money by basically giving this stuff away. What also got me thinking is that they don't plan on re-stocking after they run out. Are they maybe "planning" on running out for a reason and using these major sales to get rid of merchandise filling up warehouses in the US? Just my thoughts, but I'm wondering if others have had similar thoughts as well?
    You realize the retail "keystone" on most products is over 50%, often closer to 60-70%. So selling items at 50% off means the company is still selling that at a profit over manufacturing costs. Given how little overhead Horze has (no advertising, no catalogs to mail, one factory, limited items, etc.) I suspect they're still making a tidy profit at 50% off. I've seen them at tack expos a few times. The 50% off is still over wholesale price and even the wholesale has profit built in. They're making this stuff cheap and have a business model where selling it cheap works. Good for them!
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



  3. #23
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
    Posts
    15,984

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    Quote Originally Posted by Shine View Post
    They may have got a deal on a "buy out" and are passing on the savings. There are a lot tack shops going out of business. They would rather give someone a good deal than hang on to the inventory. Just like Sam's Club - if you want it, buy it. If you look for the same item next month it might not be there.
    With the exception of a handful of BOT items, everything on the website is one of Horze's own brands that they manufacture. They're not buying odd lots from closing tack shops.

    I think the lesson to derive here is that making products in Finland (or Poland? I can never remember) can be done cheaply!
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



  4. #24
    Join Date
    Dec. 12, 2004
    Location
    Massachusetts
    Posts
    6,603

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    Quote Originally Posted by hunterjumper21 View Post
    I love all these Horze Sales just as much as the next person, and have spent wayyy to much $$ overt past several weeks on them. I am however starting to wonder about a couple things. How and why are they selling off *almost all* of their inventory at 50-80% off. I mean we're not talking about just $20.00 t-shirts here, but $100+ blankets, outerwear, etc. I'm certainly not complaining, just curious as to how they are making money by basically giving this stuff away. What also got me thinking is that they don't plan on re-stocking after they run out. Are they maybe "planning" on running out for a reason and using these major sales to get rid of merchandise filling up warehouses in the US? Just my thoughts, but I'm wondering if others have had similar thoughts as well?
    Quote Originally Posted by vxf111 View Post
    You realize the retail "keystone" on most products is over 50%, often closer to 60-70%. So selling items at 50% off means the company is still selling that at a profit over manufacturing costs. Given how little overhead Horze has (no advertising, no catalogs to mail, one factory, limited items, etc.) I suspect they're still making a tidy profit at 50% off. I've seen them at tack expos a few times. The 50% off is still over wholesale price and even the wholesale has profit built in. They're making this stuff cheap and have a business model where selling it cheap works. Good for them!
    In addition to that....yes, of course they plan to run out! You want to run out of product if you're running a good business!

    The horse world is really, really odd....$350 Rambos are $325 on sale even if the pattern/style is eight years old. Stuff rarely goes on bargain-basement clearance prices.

    This is different from literally EVERY other industry. Brand new cars get clearanced out at the end of the model year, wholesaled and sold on and tucked into back lots so that dealers can roll out the bright and shiny ones. Clothing companies are already starting to clearance out the winter stuff, 'cause spring stuff is going to be here by January. Anything seasonal in any big box store gets marked down to almost free.

    And yet the tack stores just pack up the winter blankets and save them until next year, knocking a couple bucks off the price.

    Horze is just behaving like a normal company. As I already explained, if you watch their Facebook page they're already leaking sneak peeks of all their gorgeous spring stuff. That's going to show up on the website by Jan, most likely, and they're not going to want to have any of their winter line left. So they're clearancing it out.

    I highly doubt they are running their company into the ground just months after a long-expected debut into the US market. Plus, they're still actively hiring for many positions for their US headquarters.



  5. #25
    Join Date
    Oct. 5, 2010
    Posts
    68

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    Quote Originally Posted by vxf111 View Post
    You realize the retail "keystone" on most products is over 50%, often closer to 60-70%.
    Not for most tack shops. I'm sure Horze is still making a profit, but the tack shops I've worked for made around 40% profit at full retail price on the vast majority of their products.



  6. #26
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
    Posts
    15,984

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    Quote Originally Posted by RRein View Post
    Not for most tack shops. I'm sure Horze is still making a profit, but the tack shops I've worked for made around 40% profit at full retail price on the vast majority of their products.
    But Horze isn't a "tack shop" that's stocking items from different manufacterers in a brick and mortar location that's trying to be full service. They ARE the manufacturer. With the exception of literally 3-4 items, everything on their website is made by them. They're an online-only manufacturer selling direct to consumer. And the keystone on that is usually over 50%. I am *sure* it is for Horze because the wholesale prices they offer those goods for are less than the 50% off on the website and the wholesale price has profit built in.
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



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