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Edelbrock being sold?

Discussion in 'The Hokey Ass Message Board' started by 1935Ron, May 13, 2010.

  1. zman
    Joined: Apr 2, 2001
    Posts: 16,730

    zman
    Member
    from Garner, NC

    Sorry but that is wrong.

    Yep and plenty of companies do it. It has become quite the thing with electronics. It's one of the reasons there is no discount on a lot of things like Apple products. It keeps the playing filed level for their dealers and even the corporate stores aren't less expensive.
     
  2. Mazooma1
    Joined: Jun 5, 2007
    Posts: 13,598

    Mazooma1
    Member

    Remember last year that someone posted a thread stating that the NHRA Museum was going to close? Remember how some guys kind of lost their minds and appeared to be in need of padded cells?
    "Screw NHRA!"
    "Screw Auto Club!"
    "Wally would be spinning in his grave!"
    "I called NHRA and gave them a piece of my mind!"...(yeah, like you have any to spare:rolleyes:)

    and then guess what?

    Nothing happened. Zip. Nadda. Wally stopped spinning. Unicorns and rainbows once again were on every horizon. Until someone grabbed something new off the internet, posted it here and the new shit-storm started and the many "Karnak the Great"s started weighing in.

    Even if the Edelbrock Company is sold, burned to the ground, re-tooled to start manufacturing blow-up dolls, it's none of my business.
    But, I'll bet those blow-up dolls would perform well! :)
     
    Last edited: May 14, 2010
  3. nutajunka
    Joined: Jan 24, 2007
    Posts: 1,464

    nutajunka

    I bought a used edelbrock performer intake the other day for 10.00 if it matters. It was an old one and all I did was spend 5 minutes running a flat file over it. Seen factory aluminum intakes needing more than that. I think they will be around awhile.
     
  4. Racrdad
    Joined: Jul 27, 2007
    Posts: 1,208

    Racrdad
    Member

    The industry I work in has been devestated by Kohlberg & Co. The same "Investment Firm" that bought Holley a few years back and totally screwed it up. They know nothing about dealing with niche markets and niche market retailers, most if not all VC Firms will be the same. This will keep the Edelbrock brand alive but its bad news for U.S. workers for sure. Look for inventories to shrink, product line to narrow and every big box retailer to have Edelbrock products on their website even though they in no way are an automotive type retailer at all. That is just how it works.
     
  5. Muttley
    Joined: Nov 30, 2003
    Posts: 18,500

    Muttley
    Member

    Kirk will be in Heaven.
     
  6. I heard Ryan is selling the HAMB to Facebook :)

    [​IMG]
     
  7. McDeuce
    Joined: Sep 16, 2008
    Posts: 258

    McDeuce
    Member

    Vic, Dont Do It !! You dont need the money that bad. Edelbrock is a American company founded by a American, it is all about the American dream. Why change?

    Just my two bits
     
  8. 2002p51
    Joined: Oct 27, 2004
    Posts: 1,362

    2002p51
    Member

    Mazooma1 is absolutely right, and that's what's happening here.

    I got the following information from a source that is in a position to know. He does business with Edelbrock and has access to the people in charge.

    I trust what this guy is telling me and what follows is the truth;

    Vic isn't going anywhere, and the company isn't going anywhere. What happened is, Bank of America shut down Edelbrock's $500,000 line of credit. This is happening to banks and companies all across the country. It's nothing Edelbrock did, it's just business.

    The problem is businesses like Edelbrock need that line of credit to operate. As sales go up and down, and customers are slow to pay sometimes, and income varies, a business still has regular expenses like utilities and payroll that can't fluctuate. The line of credit gives them a safety net against a slow month.

    So Vic brought in two investors, and gave them a MINORITY partnership in exchange for an infusion of cash. That's it.

    Edelbrock has not been "sold", Vic is just doing what he needs to do, what any business would do, to keep the lights on.

    So now everybody can relax, and I can return you to your regularly scheduled posts.
     
  9. traffic61
    Joined: Jun 15, 2009
    Posts: 1,545

    traffic61
    Member
    from Owasso, OK

  10. RancheroMan
    Joined: Mar 31, 2006
    Posts: 260

    RancheroMan
    Member


    ross perot said NAFTA would kill us. remember that guy?

    didnt answer to anybody and the other two political parties hated him.
     
  11. Flipper
    Joined: May 10, 2003
    Posts: 3,395

    Flipper
    Member
    from Kentucky

    It might not have been a quick death, but it is bleeding this country dry.
     
  12. Beef Stew
    Joined: Oct 9, 2008
    Posts: 1,253

    Beef Stew
    Member
    from So Cal

    zman, Don is right. Pricing fixing is totally against the law. Technically, a manufacturer absolutely can not control the price their products are sold at on the retail level. All a manufacturer can do is offer up pricing guidelines like MSRP and MAP (minimum ADVERTISED price, not minimum selling price). It's a little wishy washy in the performance aftermarket auto industry because I've definitely seen accounts being cut off because they refused to follow pricing policy but for the most part everyone plays fair and follows the "rules" on pricing structure but a manufacturer can not price control. Don's been around a long time and knows his stuff.

    Anyways, getting back on topic, things here in the US are not how everyone here in nostalgia-land would like them to be. Being ignorant to that is trouble. Shit has changed and the change is probably permanent. It is so absolutely cut-throat competitive out there that the winner is always the one with lower costs. American made parts come at a premium and unfortunately the market as a whole has spoken and said "we will only pay the bottom dollar". Well that is what is killing Edelbrock. That and the fact that almost every single piece of their hard parts line up has been knocked off (by an American company no less) and is now mass produced in China. There is now a cheaper alternative to American made parts and that has driven everyone away. These guys are seriously fighting for pennies right now. It's sad but it's the truth.

    Another sad truth is that the vintage hot rod "old tech" part of the market is pretty much tapped out and will eventually start going the other way. New tech is doing fairly strong and is where the money is right now. No two ways around this.

    Either way, this is still just a rumor. Good to see some here can tell the forest from the trees though.
     
  13. young'n'poor
    Joined: Jan 26, 2006
    Posts: 1,281

    young'n'poor
    Member
    from Anoka. MN

    Seven whole pages of post for an unsabstantiated rumor is nuts! Haha.
     
  14. Beef Stew
    Joined: Oct 9, 2008
    Posts: 1,253

    Beef Stew
    Member
    from So Cal

    Perfect. Someone sticky this info somewhere and lock up this thread. All this "oh my god the sky is falling" crap is wasting good bandwidth. :D
     
  15. And danish and other european corporations are sold to american companies.
    Demag Cranes, once the biggest crane manufactor in the world, and German; are now owned by some american investment company, and their products arent the best anymore. Sadly it happens all the time and just because the stockholders of the investment companies demand a lot of money each year.
    Lars
     
  16. zman
    Joined: Apr 2, 2001
    Posts: 16,730

    zman
    Member
    from Garner, NC

    To quote, because it's quicker...

    "Fair Trade" statutes have been pretty well rejected. Manufacturers are allowed to require their purchasers to sign contracts promising to only sell the products at the MSRP. The guiding principle here is freedom of contract.

    These agreements are not anti-capitalistic, and are not anti-competitive. They may seem immediately anti-competitive because they restrict the abilities of one party to compete with prices, but it's actually just an expression of our country's protection of freely-made contracts. Capitalism requires that the government act to uphold freely-made agreements. A statute that says "you may not dictate the price at which your product can be sold" is in fact anti-competitive and anti-capitalistic, because it represents the government, not upholding agreements, but suggesting and mandating business conduct in a certain way. In a capitalistic society that is not the government's job.

    A little reading, http://en.wikipedia.org/wiki/Resale_price_maintenance , might help..

    but the gist is On June 28, 2007, the Supreme Court overruled Dr. Miles, discussed below, holding that such vertical price restraints as Minimum Advertised Pricing are not per se unlawful but, rather, must be judged under the "rule of reason."

    what they more or less decided is it must be a collusion of manufacturers and not just a single manufacturer and it's products to be considered anti-competitive.

    So the supreme court says otherswise as to wether a manufacturer can set the retail price for their products.
     
  17. Thirdyfivepickup
    Joined: Nov 5, 2002
    Posts: 6,093

    Thirdyfivepickup
    Member

    This all started when I said Vic should control his pricing. That is what I meant. MAP pricing works. If someone doesn't adhere to it they get cut off. Its that simple.

    If they don't get cut off then maybe most of their purchase order gets backordered mysteriously.

    Its that simple.

    One thing ole Don may have right is the local speed shop and the three tier distribution system has been killed by mail order and the internet.
     
  18. Never said it was reliable. I just added it after the OP put up vague references.

    No it's not wrong, see Beef's explanation below

    Although I don't disagree particularly with your ideal that business has lost sight, every company has to decide which way and where they want to sell their products. "Controlling" MSRP us absolutely against the law. As Beef said MAP pricing is legal, but you cannot tell a person what they can sell your product for. They can lose money on it if they want, you can't stop it as a manufacturer. Many have decided that a Summit or Jeg's operation will satisfy their sales needs and prices to them accordingly. Others have decided that they will keep the cost to resellers the same regardless of size. This of course cuts into their own bottom line as it cost them more percentage wise to ship 2 or 3 items to a small customer then it does to send 100 to Summit. The other problem is one of competition, if a manufacturer raises his wholesale price to be able to sell to at the same level to all distributors regardless of size, then the market retail has to go up, which means he will lose market share to his competitors
    A company like Edelbrock, that makes arguably some of the best products in the aftermarket and does so here in the US has a much higher cost then those that have moved production overseas or worse yet have stolen Edelbrocks designs. In order to remain at least somewhat competitive and be able to sell their products at all, the necessary evil is to rely on the mega sellers like Summit.
    And this is no different than most industries. My grandfather owned a radio and TV store back in the 40's and 50's. When places like Sears and Montgomery Ward became more aggressive in that market it made it damn near impossible to compete. But back then we had something known as "Fair Trade" where certain consumer goods could not be sold at less then the manufacturers MSRP. That was abolished in the late 70's (or maybe 80's, don't remember now) and the mom and pop TV stores were gone pretty much overnight.

    This is a bit off topic as to the original rumor, so I'll let it lay now.
     
  19. So much of what we're all seeing is macro Economics 101 . . . competition, price sensitivity, etc.. There are obviously some products that Edelbrock HAS to be more competitive on than others (carbs for instance) . . . for certain products they can demand a higher price and still get the business. Their BRAND does carry value -- who wouldn't rather run Edelbrock heads than Pro-Comp Crap (if you can afford the price difference).

    Also, big operations like Summit and Jeg's have tremendous price negotiation power -- they have the volume, they sell cheaper, they buy cheaper. This is not any different than the power that Lowe's, Home Depot have over their suppliers. You can choose to NOT sell to them, but you also just walked away from a HUGE market and a lot of volume (this forces you to remain a niche player). Edelbrock can't afford to NOT sell to these large dealers -- it would be the kiss of death to them if they didn't, or they'd have to downsize their company.

    For all the guys on here bitching about Summit and Jegs -- I'll bet damn near everyone of you uses them for parts . . . cause they have high-speed delivery and good prices. You can't have it both ways --- on one hand bitch them out because they've taken over the market, but also go to them when you need parts because of price and delivery. (I'm sure some of you don't, but I'd bet the majority do. I do.)

    It is all market forces, capitalism and economics. China is doing to us what we did to Europe -- what goes around, comes around. We have to continue to be innovative, build quality into our products/services, provide great customer service and stay AHEAD of the competition - it is the only way to continue to prosper.

    If a product is easy to clone and there is enough demand - somebody will ALWAYS make it cheaper. However, when their quality sucks . . . or they can't deliver . . . and they can't support their 'clones' . . . business will go to those who have equal or better products -- happens over and over again.
     
  20. Deuces
    Joined: Nov 3, 2009
    Posts: 23,751

    Deuces

    I'm proud of myself. :D... I haven't shopped in those places in almost 10 years.
     
  21.  
  22. billsill45
    Joined: Jul 15, 2009
    Posts: 784

    billsill45
    Member
    from SoCal

    ...and after 8 pages of lip-flapping and keyboard abuse, we still don't have a definitive answer to the question in the original post! :p
     
  23. The glory days are history. I hope there is enough patrianism left soon for all our industry giants to pull there heads out of there ass and try to reclaim this great country. I fear for all the young people if things dont change soon! Although, I wont bet a dime of my money on that happening. God bless America, we need it now.
     
  24. 392_hemi
    Joined: Jun 16, 2004
    Posts: 1,736

    392_hemi
    Member

    It's a privately held company. Chances are there won't be any details until a deal is finalized.
     
  25. hotrod40coupe
    Joined: Apr 8, 2007
    Posts: 2,561

    hotrod40coupe
    Member

    "A little reading, http://en.wikipedia.org/wiki/Resale_price_maintenance , might help."

    Zman,
    This statement just destroyed the credence to your argument. Anytime you have to go to Wikipedia, your argument dies. When I was teaching school, I wouldn't allow students to use Wiki as a reference because anybody can post information on there without confirmation of the facts. In my class if you used wikipedia as a reference it was an automatic "F".
     
  26. zman
    Joined: Apr 2, 2001
    Posts: 16,730

    zman
    Member
    from Garner, NC

    I'm not talking about MAP pricing, I am talking about a real set price that they cannot go against to be a dealer. It is legal. The supreme court even upheld that. For instance you cannot get an Apple computer cheaper than the price they set. Advertised or not. And it is legal. It's been tested in court and they are not the only ones. Now some dealers will give you something extra if you buy one, but you will pay that price. How hard is it to understand. A single manufacturer can control the price of their goods.
     
  27. zman
    Joined: Apr 2, 2001
    Posts: 16,730

    zman
    Member
    from Garner, NC

    Actually it does not, only if you don't follow it any further. But thanks for trying. If you actually do a little more digging you will see. The case law is legit. I could actually post quite a few articles on it from the suit, the wikipedia article actually sums it up pretty good. And any fool can write a book and publish it with an ISBN number as well, thinking that wikipedia is any more evil or wrong than any source is ignorant.
     
  28. PossumJR.
    Joined: Oct 26, 2009
    Posts: 423

    PossumJR.
    Member
    from Walls,MS

    Just another sign of america going down the toilet!
     
  29. Deuces
    Joined: Nov 3, 2009
    Posts: 23,751

    Deuces

    What eats me is that China's economy is thriving because of the of all the stuff you and I (sometimes) buy from them..... And we're here hurting like a mother f**ker.... Same goes with import cars.... Seems to me there are bunch of folks in this country that just don't give a shit! And that's really sad. :( I'm on my last leg here guys.... Hope I don't get banned because of this comment.... One last thing.. Invest in America before it's to late...
     
  30. Muttley
    Joined: Nov 30, 2003
    Posts: 18,500

    Muttley
    Member

    This thread just wouldnt be complete without..................

    [​IMG]
     

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