Home Depot stops doing business with federal government (even cash!)

Saint Louis Today ^ | June 16, 2002

[John Jorsett]

Home Depot Inc., the nation's largest hardware and home-improvement chain, has told its 1,400 stores not to do business with the U.S. government or its representatives.

The Post-Dispatch checked with managers at 38 stores in 11 states. All but two said they had received instructions from Home Depot's corporate headquarters this month not to take government credit cards, purchase orders or even cash if the items are being used by the federal government.

[anniegetyourgun]

Well, someone with inside/first-hand experience. Chris, I hope you're right. However, I must admit being somewhat skeptical. I mean, I wouldn't be surprised to find out that HD received pressure from PFLAG and PFAW to do this as retribution for the recent loss on so-called hate crimes bill!

[WillaJohns]

I was told on good authority the reason for this is that the Feds don't pay the state sales tax and refuse to supply the proper tax forms. The states then hit Home Depot for huge amounts of state tax after the fact and they have no documentation to prove they don't owe it. Home Depot is merely making a business decision. Apparently the profit margin at Home Depot is so low that shelling out the 7-8 percent tax (and penalties) down the road puts the purchases bought by the Feds in the negative profit column.

Sounds like it might be time to buy some Home Depot stock as their profits are going to go up.

[SarahW]

YAh, right. I'm driving down the street to Lowe's, where they have them when I need them.

[SarahW]

And, no, your store will not have the pump I need(ed). HD carries many sumps and submersible pumps, but they do NOT carry the heavy-duty submersible pump I need(ed). The wall anchors were just out of stock - but then anything I ever try to buy from HD is either not stocked or out-of stock.

[CJ Wolf]

I saw that ad, is 14.4 volt good and powerful? I need a new drill in a bad way!

[jdub]

That was exactly my interpretation of Home Depot's position. Those that are now going to not buy from them should consider just how many hoops a business has to go through to do biz with the govt. Anyone who has ever tried to do business in San Francisco has it even worse.

[brewcrew]

14.4V is good for most applications, but why mess around? Go 18V Milwaukee Tool:

Milwaukee Tool

Look for item #0522-21 under "Cordless Tools."

[Redbob]

Home Depot just leaped to the top of my list of favorite companies, and Lowe's slid even further down - if that's possible!

Finally, we have a company whose management has the b*lls to act in their own interest, and to tell the government why.

Or should I say, "and to tell the government to take a flying leap!"

[archy]

The strange part about it is they won't even take cash

If they are paying cash, how do the Home Depot employees even know the items are going to be used by the government? Even if a soldier in uniform bought something, it could be for his personal use, not necessarily for work.

Well, a request for delivery to a military base or federal institution would make it pretty clear. It appears that much of HDs new policy is aimed at avoiding deliveries to such addresses- looks like some federal security guard strip-searched the wrong HD delivery truck driver.

I'll continue doing business with Home Depot on a cash-and-carry business, same as I always have, and if the feds need to pick up a few thousand drywall screws should they be short enough to screw each and every taxpayer and citizen, they can damned well do the same.

FYI, when Smith and Wesson came out with their letter informing their dealers that they were required to adopt a policy of denying sales of S&W products to suspected criminals, the shop I mostly deal with discontinued sales to feds and cops, based on local court cases and internal affairs investigations. When S&W signed the Quisling agreement, the same shop discontinued the sale of all S&W products.

-archy-/-

[trad_anglican]

By rejecting this business in a formal way, they seem to be defining themselves as "not a government contractor." Why, who knows.

Because government contractors are required to maintain affirmative action plans which is a nice way of saying "quotas." Freepers should applaud them for putting their money where their mouth is and taking a stand against government intrusion into the running of their business.

[thinden]

The problem is... the government then can use that as a reason to claim that they can regulate the hiring practices and other aspects of the Home Depot company. "Anyone receiving government funds must comply...". Sound loopy? Tell me you don't know that some leftist judge wouldn't just love to expand the government reach that way.

just like school & hiway funding.

[Dales]

Exactly.

[hopespringseternal]

I once worked for a small wholesale business in a Detroit suburb which was located near a bunch of GM plants and the GM Tech Center (Engineering). The owner refused to sell stuff on credit to General Motors. Said that they had bad credit...a "slow pay" as I recall.

It is an accounting gimmick that makes your bottom line look good dynamically. They try to get other people to pay them quickly while waiting as long as possible to pay their own bills.

As a contractor working for a large company, I have to deal with that constantly. I have to threaten to leave and get them to treat me as a special case where I get paid on time. Every time they have a changeup in their accounting department, the new schmuck desides to sit on my invoices to make himself look good and the cycle starts over again.

It basically boils down to them not paying you until they have no other option. It is immoral and unethical, but it makes the accountants look good.

[iconoclast]

I will be reminded of the nasty citizens we have had to smile at and speak politely too. I will have the last laugh.

I swear, half the time I can't tell when Freepers are being sarcastic.

If you're serious, you gotta be the quintessential guv employee. You sound like you must have enjoyed a fantastically pleasant and fulfilling career.

[Alissa]

I work on a military base and we were told exactly the same thing. We were told at first that Home Depot would not sell to anyone in uniform even if they paid cash! A second email said this was not certain. There is definite confusion!

[Joe Hadenuf]

If you don't like the Fed Govt ways of doing business then elect better congress people.

Elect? So we should all go vote right buddy? Vote? VOTE?

I can only say this.

We tried voting in California. We worked for two years on Proposition 187 and this was the result, thanks to the Federal Government.

The people of the great state of California held a free election and voted 3 to 1 in favor of proposition 187 which would have put a stop to the tax paid support of illegal aliens. WE WON the election!!! However, the federal government stepped in and burned our ballots and declared our election unconstitutional.

LET THIS SERVE AS A WARNING! Wake up people.

Our borders and immigration policies have become a national disgrace, and now a complete national security nightmare.

Vote?

I believe the elected officials - clinton and davis - were behind that. Government workers are required to follow the elected officials [since that is who the american people put in charge]

Davis? Cliinton? It was the federal government that smashed our election. A federal judge.

Did the supreme court ever weigh in on the situation?

Well if they did, they helped the federal government burn our ballots.

[Alissa]

Your argument doesn't hold water! They said they are not taking gov't credit cards. The vendor is paid immediately by the credit card company, there is no waiting involved.

[Alissa]

Home Depot may have some sound reasoning for this action, but if I was one of their stock holders I'd be mad as hell for the inept way they are introducing this policy.

[Nuke'm Glowing]

Go HD!!!! If you ever had to do business with the .gov and wait 180 plus days for payment on large orders and payments, you'd do the same exact thing. And if you do accept a credit card from a .gov employee that does make you a "contractor" and subject to all of the assinine rules and laws that follow. Maybe if more corporations grew some and did this, then the libs would realize that they would have to come out and publically declare their support for nationalization of our industries instead of trying to legislate it into existence.

[thinden]

To: A. Morgan

Can you hear that? Yeah...that...that is the noise of Home Depot stock hitting the floor today at 9:30 am.

213 posted on 6/16/02 11:56 PM Central by My Favorite Headache

Home Depot (HD) upd 78 cents (2.11%) on news:

Last Trade 10:48am · 37.76 Change +0.78 (+2.11%)
Prev Cls 36.98
Open 37.20
Volume 3,456,800
Day's Range 36.82 - 37.76 Bid

p.s. any more tips?