Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

Joe, it's not the perception, it's the budget. At a typical hardware store, the average ticket is probably about $15, and it's mostly convenience items that are purchased. An average budget going in is probably $50 or less normally, so $20 is a big deal, and incremental impulse sales are tougher.

In a homecenter, people are often buying for projects, so they have a higher budget going in. If they're doing a deck for $4,000, it's nothing to add on a few power tools and accessories for $300, as it's only less than 10% of the budget and about the cost of 10-hours of paid labor.

People also tend to spend more money in a larger store with more merchandise. Ask anyone who's been to Sam's or Costco. They're not always the cheapest, but the supply overwhelmes and kicks in the "must have" impulses.

You also have to remember that HD will price match on stuff, so you can get a better price there if you really work at it.