LA CONVERSACIÓN ORIGINAL

The Home Depot

Acquired · · 3:35:02

Ben Gilbert discusses the retail experience behind Home Depot, its early pricing pitch, and the use of supplier payment terms to finance inventory.

The Home Depot
Acquired

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Creación de empresas

Home Depot’s founders brought retail experience

Extracto original

of the people who would go on to found Home Depot, none of them are like general contractors or grew up in the hammer manufacturing business. It's people who just knew retail.

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Creación de empresas

Lower margins were part of Home Depot’s early pitch

Extracto original

The pitch is customers are going to love it because we're going to have the lowest prices. We're only going to make a 30% gross margin instead of what's industry standard in hardware retail at that time, 45%.

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Creación de empresas

Supplier payment terms helped finance inventory

Extracto original

So this resulted in about half of The Home Depot's inventory at any given time actually being financed by the suppliers

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Fuente y metodología

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