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October 28, 2004

Sagging Dollar

The sagging US dollar has the international manufacturing community in a bind. Some are reporting business down by up to 20% as American retailers have had to bump prices to compensate for the surging Euro and Canadian dollar, which might explain why American firms were busy writing orders at October's furniture market in High Point. The internationals are pinning their hopes to a dollar gain after Nov 2 - if, sighed one Canadian manufacturer, there really is a winner declared by the 3rd.

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October 22, 2004

Glassinine

Andrew Pearson Design has fused functionality and form with its exquisite glass tables, wall art and now, sinks. But don't expect to see all this on their website. According to their sales manager, the company won't put its products on the web 'cause someone outside of a major metro might want it -- and there won't be a retailer nearby to deliver and service it. Fair enough. So maybe retailers might see it on the web and want to carry it? Nope. If they want to learn about the latest AP Design, they better schlepp on down to NC.

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October 19, 2004

Made in America Re-dux?

Hmm. Spoke with enough mannies out there to call it a trend: Seems manufacturers with high-quality products are re-thinking having their products made in Asia and are moving production back into the States and Europe. That's good for the consumer and the economy. Between the distance, the language and lack of handed-down-for-generations tradesmanship, the quality is suffering. The 25 percent savings in cost is not very attractive when complaints are up 100 percent. And imagine that, retailers are kvetching -- since they don't want to take on the additional headaches.

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Branding rant for the day

Yes, here I am spewing out the "B" word again -- and i will every day until more of you get it. What the public doesn't know is how much the retailer has terrorized the manufacturer from branding its product. And who has this benefited? I'll tell you who -- the Asians and the retailers. Full disclosure: I am a retail brat -- my dad started a business 50 years ago that my siblings now run. They were just as guilty as all the rest of the retailers out there -- tearing off the brand name so they couldn't be shopped. I understand the emotional argument. But it's short-sighted.

A retailer (not my dad!) sells a chair at $199 -- that looks a lot like the chair at $299 -- but isn't the same as the $499 chair. What's the difference? If we know the brand is say, Hjellegjerde, we know their sling leather chairs have straps that have been engineered, tested and reinforced to withstand 400 lbs of a person falling into it. Knock-offs don't. My Coach bag is the same way -- I can buy the knock off at Macy's for $49 -- and the strap rips out in 3 months (specially with all the junk I carry around). My Coach will last until I have grown so sick of it I want to beat it to death. I am willing to pay that premium for quality. That's the power of an informed consumer.

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October 16, 2004

Just stick a stamp on it

Honestly, do accountants run everything? One high-end German table manufacturer has taken to charging extra for the "box" that their product ships in. 150 Euros for a crate! What is in their wienerschnitzel? I dare retailers to tell to these guys to never mind the box -- and just stick a stamp on the table and send it as is.

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