Monday, February 22, 2010

Hansgrohe vs Grohe Which is Better?

Original Article Source:

We get many consumers who ask us if Hansgrohe and Grohe are the same company since Grohe is in both names. The answer is No. They are similar with a common heritage, but 2 very separate and competing companies. We will give you a brief summary and outline what we think separates the two apart.

Hansgrohe was the original company founded in Germany by Hans Grohe in 1901. It is now majority owned by the MASCO Group which owns other brands such as Delta Faucet and Brizo Faucets. I guess this German manufacturer can now be called American Owned. Its US headquarters is located in Atlanta, Georgia.

Grohe was founded in 1911 as Berkenhoff & Paschedag in Hemer Germany. It was taken over in 1936 by Frederich Grohe, son of Hans Grohe. Grohe has been sold a few times since and now directly competes against Hansgrohe. Grohe is no longer owned by a Grohe family member, was sold a few times and now is privately owned. The Grohe America headquarters is located in Bloomingdale, IL.

The current Hansgrohe slogan is "Das Orginal" which signifies to everyone that they are the original Grohe.

Both are awesome German or European faucets. Very modern and top of the class in terms of Shower Faucets, Rain shower heads and contemporary Faucets.

In February of 2010 we learned that Hansgrohe implemented an Internet Minimum Asking Price which increases the perceived value of the Hansgrohe brand. Retailers are informed that they can't sell the product to a consumer for less then 30% off the MSRP. We were previously seeing sales of Hansgrohe at 40% off list price or MSRP. Not only did the wholesale cost go up in February from Hansgrohe to the wholesaler/retailer but then the required selling price to the consumer has increased to a fixed minimum price. This is never a good approach to the American Consumer. Basically the consumer has to pay more money for the product. We believe that this only fixes the profit to the retailer but we retailers aren't concerned about fixed pricing.  This means you the consumer get no discounts on the brand and then there is no competition in the retail market for you to shop around for a better price. The IMAP price is at 30% off the MSRP.

Considering Hansgrohe Faucets and Grohe Faucets are of the same quality and design, Grohe currently sells at about 60% of the MSRP price. Based on that you get the impression that Grohe is now the better value.

The AXOR line by Hansgrohe has now been banned from Internet Sales all together. Thats right!! Banned from the fast growing Home Improvement channel where consumers "Want" to shop and are flocking. This is also done to make it very difficult to find via limited distribution and therefore the customer will be forced to pay full MSRP on the products.

We believe this messes with the free market and making it more difficult for consumers to find the product is the wrong approach for a manufacturer these days. High income households consumers with limited time dont want to drive 50 miles to find the product at full price. They want their life made easier with the internet and the ability to shop online for the best deal on their time and location.

Other great comparable brands such a Graff Faucets, Riobel and Fluid Faucets, Kraus, Aquabrass are actually going the other route and making their high end brands more accessible to the consumer.


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