At some point we need to realize Lowe's will not be able to keep it's doors open by selling drills and screwdrivers. No matter how pretty the stores are. These items can be purchased online at many locations and at a cheaper price.
That leaves the one thing, lumber that can only be purchased at store level. The new drive for PRO SERVICE. But most contractors use local lumber yards because of price, quality and selection.
That only leaves one area that we must excel at INSTALLS. This is were Lowe's needs to work to become the best at customer service, price and selection of services offered.
With all homeowners working to improve their homes this is the niche Lowe's needs to invest all of their efforts.
But here is what had happened so far. We cancelled the PSI business because of the many problems that were created by Lowe's. This is an area that we will lose a great deal of revenue each year. Cabinet sales will not make up for a complete kitchen and bathroom remodel.
The PSE program is being re-worked by raising the margin thresholds causing the the price of the goods and services to up. I am sure it will only be a matter of time until they figure out a way to pay the PSE less. So here is the problem with that. If they lower what is paid to the PSE all of the good tenured PSE's will go to the small companies that are cropping up all over the nation to meet these new demands from homeowners to have their homes remodeled.
Lowe's will be left with want a be salesmen that know nothing about home improvement.
These small companies are paying huge premiums for the experienced home improvement salesman.
If we continue to raise the price of our services we will lose this business to the smaller companies that only specialize in home projects.
I'm not sure of the future of Lowe's with all of the changes taking place in the stores but coping Home Depot is not the answer.
Good luck Lowe's.......