Wal-Mart Info

[TazKristi]

There has been an interesting discussion at BF regarding Wal-Mart. I thought I would post the same information here for all of you.

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We understand that there are some concerns regarding this decision. We would like to assure you that Spyderco did not make this decision lightly. Following numerous lengthy discussions we felt that becoming a small part of the world’s largest retailer would provide a great benefit, not only to Spyderco, Inc., but also to our Dealers and Distributors. This new relationship will not only introduce Spyderco to a new end line user (ELU), but we believe it will create a new wave of Spyderco enthusiasts that will seek out other offerings from Spyderco that are not available in Wal-Mart. We felt strongly that we did not want to change our quality to introduce a knife to the Wal-Mart customer but rather introduce a Wal-Mart customer to Spyderco quality.

We notified all of our accounts (both Dealers & Distributors) of the fact that we would be supplying Wal-Mart with the Native (C41PBK). This notification was given to them prior to ANY Wal-Mart store offering the knife. It also included new pricing information that was effective 1-Nov-2005. Because of the quantity Wal-Mart ordered from us, we were able to obtain discounts on the materials used to make the C41PBK. We passed this discount on to all of our accounts. The MSRP also went down and our own site has been revised. There is the same difference between Dealer cost and MSRP as all of our other models.

There are probably some (a small number according to our sales records) Dealers/Distributors who are still selling the C41PBK at the original MSRP because they purchased their stock prior to the price change.

From a corporate perspective (meaning I cannot speak for transactions with Wal-Mart directly with individual stores – we are speaking only from doing business directly with Wal-Mart at a Corporate level), Wal-Mart does not force vendors to take merchandise back. Prior to becoming an official Wal-Mart vendor there is a lengthy process in which both sides learn a great deal about the other. There is actually a written agreement between the two detailing how business will be conducted. It is in this agreement that such details as returns, etc. are addressed. In fairness to Wal-Mart if a vendor has to take back any unsold product it is only because they agreed to, prior to actually shipping anything.

The change to the Knife Boards is a rolling change; our understanding is that the updates will be complete by January/February. Currently, we are in just over 1400 stores in the US (HI & AK included). We understand that we have been placed in the heavier traffic stores (traffic specific to the knife counter). We apologize for not being able to tell you exactly which stores, but we encourage you to call ahead, as it seems to vary greatly. We know that the 3 stores closest to Spyderco all have the Native in stock.

As to what other product may be found in Wal-Mart. We are only selling the C41PBK directly to Wal-Mart at a corporate level. The reality of the situation is this, we are a small company; we have no intentions, nor do we have the ability to offer mass quantities of all of our models.

The truth is, every retailer (every business), be they worldwide or next-door approaches their business from a competitive angle. Years ago, there were only brick and mortar stores. These stores competed with each other but from the perspective of the shops within a close geographical area. Then the Internet came. This changed everything. Soon, several of those brick and mortar shops started selling their goods online. This of course dramatically increased their competition, now they're potentially competing for the same customer as someone around the world. Prices began to drop. Online outlets in fact, took the selling of knives (not just ours) to a whole new level. We watched and we’ve always done what we could for as long as we could to protect our brick and mortar stores, especially the Mom & Pop shops who could not start their own online outlet. We wouldn’t allow an online-only retailer to purchase directly from Spyderco, we tried to negotiate fair retail pricing with our customers who started their own online outlet (some agreed and adjusted their pricing, others did not – stating that they needed to stay competitive or that their pricing was based upon what was best for the ELU) and we’ve never sold new product on our own site at anything less than MSRP. The only discounted product on our site is discontinued product that has been offered to our entire account base first.

In respect to this move hurting our Dealers/Distributors, it can only do so if you, the ELU stop buying from them. We don’t foresee that happening any time soon. Wal-Mart is NOT a knife dealer or a knife shop. This is one small item in an almost infinite sea of items offered by Wal-Mart. Wal-Mart doesn’t wish to become a knife dealer or a knife shop. Our understanding is they do however wish to offer a quality USA made knife within their Sporting Goods departments at a fair price for their ELU. What we do is and always has ultimately been for our ELU.

If we were trying to do anything less than ethical we would have never notified our account base of the addition of this customer, Wal-Mart. We did so, because it was the right thing to do, not because we’re required to. Spyderco is still a privately owned and operated company. So to imply that we’ve done something behind the backs of our loyal customers is false.

In fairness to Wal-Mart, we probably should have warned them of the throws of Knuts who would be coming there way to play. Spyder Drops are fun. Hopefully, in time we’ll teach some of their clerks how to do them too!

Time will tell what becomes of this decision. You can rest assured of one thing though. We’re watching (with all of our Spyder eyes).

[The Deacon]

TazKristi, once again Spyderco has taken the time and expended the effort to provide the relatively small community these forums represent with a detailed and candid explaination of a business process that we, in all honesty have no real right to expect to be privy to. It certainly sounds like this was a very well planned development, and sincerely hope it brings benfit to all.

[redhawk44p]

In fairness to Wal-Mart, we probably should have warned them of the throws of Knuts who would be coming there way to play. Spyder Drops are fun. Hopefully, in time we’ll teach some of their clerks how to do them too!

That is Knife Knuts Sir. We are not the common garden variety knut. :D
Thanks for the explanation.

[JD Spydo]

I do know that businesses have to make pertinent decisions to not only stay in business but to optimize their exposure to the vast target markets out there. I also know that product exposure to make the public aware of your product is vitally important as well. I also know that "cash flow" has to be maximized to compete in today's world. But for the record I vehemently hate wal-mart and what they have done to many good, honest hard working people. I have seen what they have done to destroy small communities, small businesses and the way that they have decimated workers.

I will always be a fan of the Great Spyder Factory for the reasons that drew me to be a Spyderco "aficionado" to begin with. However I can't be silent. I must say that I truly believe you are dealing with the devil himself ( my opinion to which I'm entitled) and I truly think that they will do whatever they can to bring anyone down. They are nobody's friend. They are truly nothing but "predatory capitalists" IMHO.

I'm not mad at Spyderco for doing it. But I am afraid you will find out that it will somehow come back to haunt your great company. IF there's a way they can rip off or take malevolent advantage of someone they will do it. Ask anyone who has ever worked for them. I do ultimately wish Spyderco all the success they can achieve. And I sure hope this decision doesn't come back to hit you all in the face.

[TazKristi]

JD Spydo,
You are absolutely right, you are entitled to your opinion. I also want to point out that we value your opinion. We always will. Thank you for being willing to share it.

Kristi

[MojoRising]

Judging from the posts on this and every other knife board I'm a member of, as well as every firearm and LEO board, Spyderco will have to do another trial run with WalMart to get a true account of actual sales. I think all of this run has been purchased by ravenous knuts! :D

[Jim Malone]

JD, it is indeed something to consider, but mybe we should see this as the FIAT group in Italy. They have Fiat, Alfa Romeo and Ferrari. They can keep their Ferrari factory and F1 racing team working because they can use money from the parent company.

Making a "budget" Spyderco like the Byrds and making the :spyder: Native available to the general public can boost R&D on the higher priced models.

We could benefit from this step.

Or do i see it wrong?

greetz

[5150]

spyderco in no way has to justify their business decisions to our rag tag group, yet i know their inclination to do so is a sign of respect and would like them to know, and i'm sure i speak for all forum members when i say, that respect is very much mutual indeed.
thank you tazkristi. :)

[4 s ter]

Kristi

Thanks to you and Spyderco for elaborating on the decision to expand the distribution of Spyderco products (or product ) into WalMart. It is obvious that the decision has been well thought out and Spyderco entered into the deal with full understanding of it's own objectives, concerns of distributor/dealers, and a knowledge of how WalMart does business. Hopefully it has positive outcomes for all involved.

The only comment I will make (without naming companies) is that the "returns" contract that some have agreed to has been because they felt they had no choice and needed a deal with a large marketer. They took a risk and paid for it - in some cases with their company's viability. One advantage Spyderco has is that knives tend to be affected less by season or model year factors.

Spyderco has my sincere wishes for a success!

[markg]

I for one, like the move... Why? I like the fact that I can go to a national retailier and know I can find a knife I know and trust. Let's say I am traveling, and my knife dissappears out of checked baggage (not that anything like that can happen :) ) I can find a Walmart and get a Native, at a good price. I was out of town last year, and was in a metropolitan area, and was looking to find a Spyderco Rescue... Could not find it. Now I could have tripped over 15 Walmarts in the same time!

I also have friends that use knifes, I like to buy them quality knives (so they don't carry junk). However I am not rich. This allows me to give a gift of a knife that has a high qaulity steel, and introduce them to a brand they can trust...

[ront]

Hi Kristi,
Thanks for taking the time to share this with us. It is much appreciated!!

Ron

[CKE]

Thank you Kristi.

Sal is not a stupid person...he would not be where he is if he was :D

I think this will be a good thing...only time will tell.

I wish you all the best, heres to a GREAT 2006!

Craig

[MojoRising]

I just found the Delica on WalMart's website for sale. The price is actually higher than many other dealers. Is this an error or are other models going to be sold in store as well?

http://www.walmart.com/catalog/search-n ... s=20&ico=0

[Andre V]

I wish Sal & Co. all the success due to them. I hope you make $$$ out of these deals. :) :)

As to the rest of my forumites, i think Spyderco has shown they will always look after our best interests, proof of this is this post by Tazkristy.

Spyderco's success can only make our lives as Spydernuts better. More money for the R&D department!!! :) :)

[PSU]

I wish Spyderco nothing but Success! I believe that this move will widen the market for their knives. I just hope that the common shopper is wise enough to pick a quality knife over the many cheap (cost & quality) knives that they sell: Gerbers, Remington,...

I just picked up a Native at my local WalMart and I must say that I really enjoyed checking out the knife before the purchase. Since I do not live near any knife stores I have not been able to buy one in person for a while. Also, like markg said, it is nice to be able to pick up a Spydie in a clutch situation at one of the million Walmarts.

Tom

[Slvgx]

Thanks for taking time to explain things. I see pros and cons to the Wal-Mart deal, and I've yet to decide on things. Either way, thanks for helping set things straight! :)

[TazKristi]

Mojo,
The only model that we are directly selling to Wal-Mart is the Native. They do have a program that allows their individual stores (this includes their online "store") to make purchases of their own, not planned by Corporate. Any other Spyderco seen in Wal-Mart is not sold to them directly through Spyderco.

Kristi

[waredbear]

Thank-you Sal and Taz for that very informative explaination of the Wal-mart deal. I for one had never heard of Spyderco until a few months ago when RonT introduced me to them. I do collect knives from time to time, mostly for everyday use and hunting. I do look at the knives at Wal-mart and would have eventually (once our store carries them) been introduced to Spyderco and their great line of knives. I agree that the Wal-mart venture is a great marketing tool for Spyderco to get their name out to the masses...who like me...must have lived under a rock to have never heard of the great Spyderco name. I look forward to when I can buy my first Spydy...which won't be until after Christmas... :o

[JD Spydo]

We have a big Cabelas super store close to where I live. I finally went over there the other day to discover that they do carry a limited amount of Spyders. I saw the Delica, Endura, IMpala and the Native. Now they had a separate booth within the store that only dealt with knives. IF you all are going the mainline retail route I think that having a bigger presense in a store Like Cabelas would really pay a dividend.

The Bass Pro chain headquartered in Springfield Missouri would also be a great outlet for Spyders. The one in Springfield use to carry about 6 models but the last time I was there they only had 3. I would think that specialty outdoor stores would be more inclined to be much better vendors IMO.

[Hannibal Lecter]

The time for silence is over, at least on my part.

I have followed with great interest the opinions of Spyder-lovers where the decision by Spyderco to market their wares through Wal-Mart has been concerned. If I might, I have a few thoughts of my own to offer up for discussion.

The access this decision grants the general public to the Spyderco name is unparalleled and impossible to obtain by any other means. This can only be good for the health and longevity of the company whose products we all think so highly of.

This decision also brings Spyderco quality to the masses giving consumers the choice of finally obtaining quality cutlery, where traditionally their choices have been confined to 420J2 steel and inferior craftsmanship.

Wal-Mart is only currently carrying one model of Spyderco knife, making it more likely that anyone who obtains one there and loves it as we do will search other sources for additional Spyderco products. While I admit that it might make a dent in other dealers' sales of this particular model, I believe it will actually increase their sales as more consumers get exposure to Spyderco products and demand the better quality they provide.


As a final parting thought, most of us profess to have the deepest respect for the entire Spyderco crew, and especially for Mr. Sal Glesser. While some of us might not like Wal-Mart in principle (myself included), I fully respect Sal's decision to market his products there and support it. I respect the research and time that undoubtedly went into this decision. I respect the intelligence in the design of his products. Most of all, I respect his wisdom; the wisdom that has both been the guide and provided the propulsion in bringing Spyderco to the forefront of modern knife manufacturing.

Whether or not you agree with their decision to market Spyderco knives in Wal-Mart, I respectfully submit that we honor Sal and company with the respect and trust that they so deserve. I know for fact that an unprecedented amount of research and work went into this planning this undertaking. Consider this: Sal listens to our opinions, even solicits them, which shows that he respects us, respects our thoughts, respects our decisions, and respects our ideas.


I believe it is time to show that we fully reciprocate.


Respectfully yours,


Dr. Hannibal Lecter, M.D.
doctor.hannibal.lecter.md@gmail.com


My Dear Friends, I have included my e-mail address above in the event that anyone cares to debate my views on this issue and might intend on doing so in a less than polite fashion. This forum is not the place for ill behavior and I respectfully request that if you are going to lambast me for my views that you do so privately. My thanks to you.