Should the PX/BX/MCX/NX change out expensive brands to meet service members pocket books?

2016-01-20T09:48:49-05:00

Should the PX/BX/MCX/NX change out expensive brands to meet service members pocket books?

Have you ever noticed all the high end brand names in the Exchange Stores?

Most of the items that young families need is cheaper at Walmart, or other off post discount stores, even with the "no tax" benefit.

Should be have an Exchange that will allow our younger enlisted, junior NCOs, and Junior Officers and their families get more for their money, along with the tax benefit?

I'm not saying we should do away with our Exchange system, but should we have an outlet where our service member can compete with inflation and at least match or beat the prices at a Walmart?

How about a contract with Walmart to provide and distribute products on our bases (sundry items mostly) without the taxes as their support for our military service members (located them in the Exchange), so we don't take business away from the current system. Instead provide a bigger benefit for younger service members and their families.

Response by SSG Audwin Scott made Jan 20 at 2016 9:50 AM

2016-01-20T09:50:05-05:00

I think they should make the change. Most service members put themselves in debt trying to keep up with the Jones....

Response by SPC Private RallyPoint Member made Jan 20 at 2016 9:55 AM

2016-01-20T09:55:50-05:00

I agree, however, there is a PX specific brand of clothing there that isn't too expensive. But yes, no one needs to buy a $500.00 Calvin Klein jacket at the PX. Go to the mall for that kind of stuff.

Response by SFC Thomas Howes made Jan 20 at 2016 10:07 AM

2016-01-20T10:07:30-05:00

I think so hell most of my soldiers would shop walmart or target because it is cheaper and that was back in the 90's

Response by MSG Private RallyPoint Member made Jan 20 at 2016 10:09 AM

2016-01-20T10:09:04-05:00

You mean........like those very expensive boots they sell that we are not authorized to wear?

Response by SGT Kristin Wiley made Jan 20 at 2016 10:25 AM

2016-01-20T10:25:14-05:00

How are we going to keep the moral of the spouses up if we don't offer coach purses?

Response by Sgt Aaron Kennedy, MS made Jan 20 at 2016 10:41 AM

2016-01-20T10:41:07-05:00

It's not the "brands" that are the issue at the Exchange. It's the Model.

The Exchange uses what is an arguably "outdated" (on the verge of obsolete) Model of Retail Sales. Walmart and most of other retail establishments use a more Modern standard.

The Walmart Model (Modern) owns its own distribution from "birth to grave." Each product (group) goes into a centralized distribution, where Walmart sends to to stores and restocks it based on their own systems.

The Exchange system uses "stockers" who work for the "product vendors" and resupply as needed. There are inventory planners as well (paralleling the Modern system), but this system is decentralized to the store level much more than Walmart which makes it much "slower" and harder to compete with outside providers.

The concept of the Exchange is GREAT. The execution of the Exchange however needs to be modernized if we want it to compete. It's not about brands (though that may help). We must remember that Walmart has "house brands" which they own, further reducing cost.

So when we talk about reducing cost to families, products is one part... but we may end up driving people to better providers of similar products. Why shop at the Exchange for "cheap products" when you can go to Walmart for "cheap products" with a better selection.

Edit: Word

Response by LTC Stephen F. made Jan 20 at 2016 11:40 AM

2016-01-20T11:40:07-05:00

I don't think the PX/BX/MCX/NX should necessarily change out most or all expensive brands of electronics, etc. COL Mikel J. Burroughs. They stock moderately expensive perfumes, clothes, and accessories [to be honest I have no idea what the depth and breadth of accessories includes]. Since the PX/BX/MCX/NX is a major source of Morale, Welfare and Recreation (MWR) funding they need to turn a profit to fund MWR activities on post, primarily. I think the MWR-process design needs to be relooked at and updated to teh 21st century.
There has long been a battle with DECA to reduce the subsidy which benefits service people and their families ans well as retirees. The subsidy has been eroded to the point that diary products and meats tend to be the only things significantly cheaper than outside the commissary.
It may make sense to find alternate funding for MWR activity on post. Direct funding of MWR based on the supported population of service members and their family members.
Rethinking the PX/BX/MCX/NX model of one at most stateside bases, posts, and stations. PX/BX/MCX/NX are definitely useful in more remote locations. If DoD is going to continue to place PX/BX/MCX/NX in major markets such as the DC area then they should modify the market model to make shopping more attractive to service members including offering competitive prices to places such as Walmart. Walmart just went through a rightsizing and is eliminating over 150 various size stores in markets around the world. Hopefully DoD will learn from Walmart.

Response by 1SG Private RallyPoint Member made Jan 20 at 2016 11:54 AM

2016-01-20T11:54:39-05:00

Got to take the training wheels off sooner or later.
The Army is not their mommy, even though it feels like it sometimes.
When it comes to blowing money on frivolous things, AAFES is the least of their worries. Look at the ridiculous rims on their POVs, their pimped-out gaming systems, and the local clubs and I will show you where bubbas' money really goes.

Response by COL Ted Mc made Jan 20 at 2016 3:17 PM

2016-01-20T15:17:30-05:00

COL Mikel J. Burroughs - Mikel; Since the profits from the various "Exchanges" goes to fund military morale, recreation, and welfare programs, the "Exchanges" have opted for the "low volume / high profit margin" business model which maximizes return on inventory. Wal*Mart and the like have opted for the "high volume / low profit margin" business model which maximizes return on floor space.

To successfully compete with Wal*Mart and the like, the "Exchanges" would have to be of equivalent size.

On the other hand, if the "Exchanges" were to adopt an "Amazon" business model where you could get almost anything you wanted and have it delivered to your home within a day or so (which would get even more "efficient" if the delivery was to your local "Exchange" which still stocked "every day" items that might end up being the best "solution".

Response by Cpl Clinton Britt made Jan 20 at 2016 3:39 PM

2016-01-20T15:39:56-05:00

The only real deals are in the commissary. The px only caters to the young in married bachelor or higher ranking ones.

I will say, when clothes go in clearance, they are priced to sell

Response by MSgt Steven Holt, NRP, CCEMT-P made Jan 20 at 2016 4:10 PM

2016-01-20T16:10:47-05:00

The only time I ever really shopped the BX/PX was when stationed overseas. Even then, I just couldn't justify spending $75 on Tommy Hilfiger jeans to mow the yard. I would always order cheaper from the inter-webs or have family ship to me. For me, the only real advantage was purchasing "big ticket" items like TV's or other appliances mostly because of the savings on sales tax.

Response by SPC Margaret Higgins made Jan 20 at 2016 5:11 PM

2016-01-20T17:11:19-05:00

Very Definitely, Mikel. What could Make more sense?.
-In Him, Margaret

Response by SSgt Private RallyPoint Member made Jan 20 at 2016 8:17 PM

2016-01-20T20:17:04-05:00

No. Service members need to learn how to spend responsibly and AAFES needs to learn to compete in pricing.

Response by SFC Private RallyPoint Member made Jan 20 at 2016 8:35 PM

2016-01-20T20:35:11-05:00

Yes! Absolutely. And while they're at it they need to start restocking clothing sizes for all damnit. I'm a tall fella(36 in inseam), and I was told by the lady working there that AAFES STOPPED carrying the taller sizes, and can only be bought online. Luckily I actually found 1 pair of Khakis in the entire Men's dept. shocked her also..lol.

Response by PO3 Rod Arnold made Jan 20 at 2016 9:48 PM

2016-01-20T21:48:43-05:00

It sound's to me like the Exchange needs to carry both brands, and let the customer make their own choice. Maybe I'm using to much common sense!!! :-)

Response by MSgt Frank Martin made Jan 21 at 2016 11:47 PM

2016-01-21T23:47:29-05:00

I always thought that the BX/PX system bought the high end and sold it at a more "reasonable" cost than off base. There was a few exceptions to that but generally it was true.

What really use to make me mad was when I was based at Hill AFB in Utah and AFESS was always going on about "price matching" to off-base establishments for items. I found a computer printer that was the exact model to one that was in the BX for about $50 less and brought in the advertisement and asked if I could the identical item price matched at the exchange. The Electronics Manager talked to me like I was a criminal for even suggesting it. Then took the add and called the local Best Buy that I showed had the item. When he found out that the Best Buy DID have the item, he tried to say that they could not match the cost because "it was not from the same lot".. even though it was the same model number.

From then on.. I never bothered with Exchange "deals". I used the exchange to buy uniform items, and maybe shoes.. and little things. Their civilian clothing line is always high priced to me, sometimes you can find deals.. but not often. Of course when I as overseas, they were virtually the only game in town unless I wanted to go on the economy..

Response by SGT(P) Private RallyPoint Member made Jan 22 at 2016 8:42 PM

2016-01-22T20:42:51-05:00

Great question, we frequently shop the Exchange and find that most Brand Name items are fairly priced and they meet many price points.... no Brand, mid and high high end brands.

However you get what you pay for just like anywhere else.

I will pay the same price or even a little more at PX knowing the tax savings and portion of my dollars going on Post facilities that my family utilize .

Response by 1SG David Niles made Jan 22 at 2016 9:15 PM

2016-01-22T21:15:38-05:00

One time I observed Rolex watches being sold to the troops. Only persons who could afford those were Field Grade officers

Response by LCDR Steve Didio made Jan 23 at 2016 11:30 AM

2016-01-23T11:30:16-05:00

Colonel Burroughs, thanks for this thoughtful post. I can't tell you how many times I've thought to myself, how do the junior service members on base afford Nautica, Coach, Ralph Lauren, etc. brand items at the PX/BX/NX? And the other "store brand" products (e.g.; "Faded Glory", etc.) are just junk. Can't the Exchanges offer a middle-ground of quality, moderately priced merchandise? Seems like you have to pay $58 for a shirt, or settle for low-quality apparel for $14. And what has this type of marketing led to? The Exchanges have had to extend credit in the form of "Star Cards". This is because they're selling merchandise their target audiences can't really afford. I think this is doing nothing but adding to the financial problems often experienced by junior service members.

Response by PO1 William "Chip" Nagel made Jan 23 at 2016 11:33 AM

2016-01-23T11:33:39-05:00

I don't shop at the Px. I live in Metro KC and it is a bit further than I want to go to go to the one at Richards Gebauer or Leavenworth.

Response by CPT Private RallyPoint Member made Jan 23 at 2016 12:28 PM

2016-01-23T12:28:50-05:00

I personally go to Walmart for most gadgets. At FT Rucker at least, the PX isn't diversified enough to meet my needs.

Response by SFC Private RallyPoint Member made Jan 25 at 2016 3:46 PM

2016-01-25T15:46:27-05:00

They offer cheap stuff and nice stuff. You can buy either or, its up to you.

Response by SSG Private RallyPoint Member made Jan 26 at 2016 6:36 PM

2016-01-26T18:36:53-05:00

My biggest issue with the Exchange is that the exact same products are available cheaper even with tax from outside vendors which may be in part due to what @Sgt Aaron Kennedy has identified. The commissary while under different operation is just as useless. I am not paying tax at the commissary but when you add in the surcharge and tipping the bagger I am paying more than I would from outside grocery stores. Often the only time I use either of these if it is a last minute item needed for dinner etc. I wonder what would happen if AAFES contracted out their stores to Wal-Mart or Target with the same percentage of sales going back to that community if the prices would be any cheaper. A local veteran I know operates a third party store located at one of the outside vendor sites outside of the Exchange. They have stated that the rate AAFES charges outside vendors is ridiculous and no where near competitive compared to the same square footage near the local Walmart or Mall.