14 April 2018

What Dick's

Apparently Dick's Sporting Goods is planning on destroying their stocks of snowflake melting rifles; rather than returning them to the manufacturers for credit/refund.

The announcement did wonders for their stock value, losing 5.52% of value per share as it dropped from $34.97 (opening price and high price of the day) to $32.86 at closing Friday.

Even more "good" news for DKS shareholders is the stock is down from $52.31 in April last year.

They're not doing well overall and keep alienating a core constituency.

Something they need to start teaching in business schools is how to determine if the people complaining about your business and products you sell are actually customers or not.

Threats of boycotts from people who aren't customers matter little.  Threats of boycotts from people whom aren't even potential customers matter not at all.

Telling customers they're wrong for wanting to buy something from you?  Yeah, that matters.

Wells Fargo and Bank of America should probably take some notes.  Delta and Citibank are contributing examples as well.

The NFL could not be reached as they were protesting something or other.

PS:  The decision to destroy stock rather than return it is the maximum financial damage they can do to themselves here.  They've paid for the rifles and now are going to pay more to have them destroyed.

PPS:  While Dick's refusal to sell in the future affects future sales, their refusal to do the returns has the minimum damage to the gun makers.  They got paid for those guns, or they will be paid if Dick's doesn't exercise it's no-sale return clause.

2 comments:

  1. AND it helps with the 'overstocking' issue... :-D

    ReplyDelete
  2. If they don't want those rifles I will be happy to take them. And I will love them, and hug them, and squeeze them, and I will call them "George."

    ReplyDelete

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