We heard it confirmed this week that Michael’s will be opening a dozen stores in Quebec over the next I imagine six to eight months, and they plan on predatory pricing for art supplies at 50% off, a kind of scorched earth policy to wipe out resistance. Like the Germans going to battle on the eastern front, they will hope to obliterate all in their path. Mind you, kicking De Serres into a pit and shoveling gravel over the top, or limestone to muffle the stink does sound appealing. But, before we got carried away in our enthusiasm that the De Serres comedy troupe would be fed a diet of thrown rotten eggs and mossy potatoes, we remembered that madame Pickwick is also in this business in this market. Cripes! What will become of us if our hundreds of more or less not satisfied wholesale customers go the way of the Stanstead slop hound or the Rouyn spotted rat, all extinct and much lamented.
Well. Well. There are always secret plays that can be relayed in from the bench, secret weapons, Goliath stoppers, we are saving, like the Riverboat card shark with an ace stuck with craft glue on his hairy leg. I used to have dreams that I’d end up washing cars in the Montreal East end, but perhaps it won’t be necessary. Both my associate Benjamin and myself used to be great door to door salesman in our tender years, everything from chocolate bars, to greeting cards, to march of dimes, to Unicef, but we should be able to steer this opponent away.
At the CHA show we came across Black-Silver brushes from FM Brush and its surprising how well made they are and how inexpensive they are. Made in Thailand, FM opened a factory there many years ago, and the workmanship is top bananas. The suggested retail price in $2.99 and we sell them for far less. At a certain point price competition becomes absurd, making no sense. In our region, there was a company called CPC which just went under. BK. Bit the dust. Seven stores, fairly large, but owed $14 million. And they sold cheap. Discounting. At a certain level, you have to continuously keep selling more to cover expenses and often that more cannot be had at a marginal cost that makes sense.
In this case there may have been some monkey business, only a forensic accountant can know for sure, a kind of gynecologist of the measurements that matter, that will pronounce the patient has an incurable malady, chronic from deceiving himself and his public for years. Or, maybe he was afraid of Michael’s and Target and decided to swallow the cyanide earlier than later. In any event, Michael’s better watch their step. We are armed and strangerous.