I grew up walking behind a Snapper mower back and forth across my yard every week for most of the year (mowing, like boating, is pretty much a year-round sport in Texas). Years later, I pushed that exact same Snapper across my own yard after years in storage and doing nothing more than changing the oil, air filter, and sparkplug. The only other thing I ever had to replace was the wheels, which I actually wore out. It lacked even the most rudimentary safety features, but it started every time, ran like a dream.

Maybe it’s just nostalgia for cursing my way back and forth across the yard, but I really liked this article on Snapper’s decision to no longer do business with Wal-Mart.

“As I look at the three years Snapper has been with you,” he told the vice president, “every year the price has come down. Every year the content of the product has gone up. We’re at a position where, first, it’s still priced where it doesn’t meet the needs of your clientele. For Wal-Mart, it’s still too high-priced. I think you’d agree with that.

“Now, at the price I’m selling to you today, I’m not making any money on it. And if we do what you want next year, I’ll lose money. I could do that and not go out of business. But we have this independent-dealer channel. And 80% of our business is over here with them. And I can’t put them at a competitive disadvantage. If I do that, I lose everything. So this just isn’t a compatible fit.”

…

No lightning bolt struck. Except that Snapper instantly gave up almost 20% of its business. “But when we told the dealers that they would no longer find Snapper in Wal-Mart, they were very pleased with that decision. And I think we got most of that business back by winning the hearts of the dealers.”

The President of Snapper had the courage to assess the situation, accept the risk that he might never going to get back that 20% of sales that Wal-Mart was currently contributing, and still say, “No,” to Wal-Mart. That is the difference between a leader and the average senior executive today. He looked at what was best for his workforce, his brand and, as a result, his company instead of chasing whatever he’s told will be best for the share price this quarter.

He took the risk that enough of the people buying lawnmowers both know the difference between high- and low-quality mowers and that they will act on that knowledge, one which is apparently paying off for the company as the independent retailers who sold the other 80% of their product are rewarding them for their decision

My sweat-stained hat is off to him for it.

Thanks for the link to Today in Iraq.

I guess in a real sense, the MD of Snapper is no different to the Iraqis fighting the Corporate Takeover of Iraq.

We’ll see.

They instantly gave up 20% of their revenue, but they gave up MORE than 20% of their costs. Not exactly rocket science, especially when Walmart has made it abundantly clear that they do not see any value in “relationship-building” or reputation.