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  "documentTitle": "Generac Holdings, Inc. (GNRC)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-06-22 00:00:00",
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  "notes": "Uses Wayback Machine screenshots to compare current vs historical product offerings and pricing.",
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      "text": "Spruce Point finds clear evidence that Generac's portable generator business is under pricing pressures, and management has failed to disclose any price issues associated with the business line.",
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      "kind": "image",
      "text": "Pre-COVID-19 Featured Portable Generators",
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      "text": "Current Featured Portable Generators",
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      "kind": "metric",
      "text": "gross margin: 19%",
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      "text": "Spruce Point finds clear evidence that Generac's portable generator business is under pricing pressures, and management has failed to disclose any price issues associated with the business line. Using the Wayback Machine, we see that Pre-COVID-19 Generac featured 46 SKUs, which has been reduced to 32 SKUs. In addition, we see clear evidence of price deflation. Two of Generac's prominently featured models, #7127 and #7117, have been price cut by 17% and 19%, respectively. Portables already carried below average margins before the price cuts took into effect.",
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      "kind": "quote",
      "text": "This 250-basis-point decline in gross margin as compared to the prior year was mainly the result of an unfavorable mix -- sales mix. The shift in mix was driven by the significant growth in shipments of portable generators and mobile products during the quarter, which carry lower gross margins relative to the consolidated corporate average.",
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      "text": "\"This 250-basis-point decline in gross margin as compared to the prior year was mainly the result of an unfavorable mix -- sales mix. The shift in mix was driven by the significant growth in shipments of portable generators and mobile products during the quarter, which carry lower gross margins relative to the consolidated corporate average.\" — CFO Q3 2017",
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      "text": "Source: Generac website",
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      "kind": "source-note",
      "text": "Source: Q3 2017 Conf Call",
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      "kind": "title",
      "text": "Undisclosed Pricing Pressures In Portable Generators",
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