[V8] H&R Group Buy Shuttered

Coleman, David David.Coleman at blackrock.com
Tue Mar 22 13:57:00 EST 2005


After a considerable amount of research, negotiations, and comparative
analyses, I received several attractive group buy price offers, ranging
from $299 to $399/set (for #29921).   Offers were generally based on
retail prices of $349 - $499, and I made it clear we'd need something
substantial over Tire Rack's $310/set to compensate for shipping.  But
the math isn't working out, and it seems H&R has a distribution
arrangement which is not at all conducive to this sort of endeavor.

So even if we go with a $299/set offer (from Turner Motorsports, ECS
Tuning, or GMP -- all classy establishments), shipping the skid to my
door would be ~ $250 divided by # of participants, PLUS shipping from
Delaware to wherever you are.   Plus a service charge for credit cards,
if applicable.  Additionally, inventory in the U.S. is extremely low to
non-existent, which means about 6 weeks before they'd arrive.  The fact
that no one has them in stock makes it impossible for anyone to offer
free shipping.

So my reaction to what I've seen is that it's likely in everyone's best
interest to go it alone.   The cold hard fact is that TireRack has
worked a deal to effectively Wal-Mart the competition out, at least in
this situation.   The best discounted price just isn't attractive enough
to warrant the effort.  Additionally, no waiting on slackers, no return
hassles, and no settling for what majority has called for is probably
worth any overall savings over Tire Rack's $310/set.

Please accept my sincere apologies that this didn't come together.
Perhaps the overall timing is wrong, and two months from now stockrooms
will be overflowing, and we can try again.  But for now, if anyone has
any questions or input, please feel free to contact me directly.


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