A
Anonymous
Guest
How much % should distributors get?
This reminds me of a phone call I took earlier today:
ME: Good afternoon, Fish Heads.
HER: Does your business accept credit cards?
ME: What is this regarding please?
HER: I just need to know if your business accepts credit cards.
(I can tell she's calling from a large call center of some kind, background chatter is quite loud)
ME: Why? Are you trying to sell something? I can tell you are calling from some kind of call center.
HER: NO, I just need to know if your company accepts credit cards.
ME: I'd be glad to answer if you'd enlighten me as to why you need this information.
HER: Just answer my question, does your company accept credit cards?
ME: *click*
- Uncle JT
ME: Good afternoon, Fish Heads.
HER: Does your business accept credit cards?
ME: What is this regarding please?
HER: I just need to know if your business accepts credit cards.
(I can tell she's calling from a large call center of some kind, background chatter is quite loud)
ME: Why? Are you trying to sell something? I can tell you are calling from some kind of call center.
HER: NO, I just need to know if your company accepts credit cards.
ME: I'd be glad to answer if you'd enlighten me as to why you need this information.
HER: Just answer my question, does your company accept credit cards?
ME: *click*
- Uncle JT
clarionreef
Advanced Reefer
- Location
- San Francisco
Right JT... and you seemed to have silenced him already.
How much SHOULD distributors get?
What a silly question.
The subsidy of certain basic foodstuffs in some countries keep the prices out of the hands of free market forces. In Latin American countries you may find the price of flour, tortillas, frijoles, powdered milk subsidized and price set. But even with these there are also alternative brands that play in the market.
When consumer nations need to choose between 'essentials' like Bangaii cardinals and bread to feed their families, perhaps the question would have a tad of merit.
Imagine a price fixing scheme in a chain of custody determined by some secret committees notion of fairness...especially in a market where dumping fish and corals at cost is sometimes a strategy and where the internet revolution forces the prices back down regardless of social, economic or environmental issues.
Steve
PS. Seriously, I thought this kind of stuff went out in the 60's when 'socialist clubs" on campus were in vogue among the students that never held a job yet.
How much SHOULD distributors get?
What a silly question.
The subsidy of certain basic foodstuffs in some countries keep the prices out of the hands of free market forces. In Latin American countries you may find the price of flour, tortillas, frijoles, powdered milk subsidized and price set. But even with these there are also alternative brands that play in the market.
When consumer nations need to choose between 'essentials' like Bangaii cardinals and bread to feed their families, perhaps the question would have a tad of merit.
Imagine a price fixing scheme in a chain of custody determined by some secret committees notion of fairness...especially in a market where dumping fish and corals at cost is sometimes a strategy and where the internet revolution forces the prices back down regardless of social, economic or environmental issues.
Steve
PS. Seriously, I thought this kind of stuff went out in the 60's when 'socialist clubs" on campus were in vogue among the students that never held a job yet.
InCaGa (a close friend of mine) was trying to ask this:
*) the breeder -breeds- clownfish by the 100's, he would like to sell his fish product all over the country. Lets say there are only 3 hairy hands the producer, the distributor and the final seller (imagine if it was this simple).
How much % should the distributor get?
*) the breeder -breeds- clownfish by the 100's, he would like to sell his fish product all over the country. Lets say there are only 3 hairy hands the producer, the distributor and the final seller (imagine if it was this simple).
How much % should the distributor get?
Waterplanet":11682q2v said:
The word usually comes up when a certain troublemaking Canadian tries to tell America how to run its business. Here I assume it is in reference to the MAC/MAMTI certification scheme and the possible consequences to the free market system. You can't expect people to go through the trouble and expense of certification only to see the certifed fish being discounted on the net or at Petco. Can you? Some sort of suggested retail price will need to be established and everyone will need to stay close to this amount if the system is to work.
I'd guess most wholesalers shoot for 50%gpm above invoice and freight cost to cover loses and overhead. And to have enough left over to feed the bambinos. Once the loses are down to 1% perhaps livestock wholesalers can operate at or near the 35%GPM the drygoods wholesalers expect.
Jimmy,
The real danger comes when demand exceeds supply. Say hr4928 passes and only certifed fish could be imported. Given the limited number of certified collection areas with the proper CAMPs and MPAs in place, there would not be enough fish to go around. Say Petco gets some of its stores certified and can pretty much suck up all the available certified fish supply just for their stores. Say there are two major certifed importers and Petco plays them against each other with the carrot being their huge purchasing power. Petco could demand the right of first refusal on all the best items that are coming and dominate the market like it has not been done to date. Many of us have seen how Petco was able to use the exact same strategy to hog up cultured clowns when they have new store opening. In business the biggest buyers are the one who make the rules. A quick study of the WalMart success proves this. Certification puts a brand name on the fish. A MAC certifed yellow tang at Petco is the same fish as a MAC certifed yellow tang at my store. There is really no way to justify to the public why one would be selling higher than the other. The public don't give a rat's ass if that certifed wholesaler charged me 30% more for my yellow tang than they did Petco because Petco used muscle to get better terms. It would be best if everything just sells for the same price everywhere and let other factors decide who gets the sale.
If it gets to the point where a suggested selling price is accepted then having the best variety will be a huge advantage and I'm pretty sure the Petco people are on the ball enough to realize this. This is a potentially very dangerous game we are playing, and so far I have seen no evidence that it will turn out well for the independent retailers or etailer. NONE WHAT SO EVER.
Mitch
The real danger comes when demand exceeds supply. Say hr4928 passes and only certifed fish could be imported. Given the limited number of certified collection areas with the proper CAMPs and MPAs in place, there would not be enough fish to go around. Say Petco gets some of its stores certified and can pretty much suck up all the available certified fish supply just for their stores. Say there are two major certifed importers and Petco plays them against each other with the carrot being their huge purchasing power. Petco could demand the right of first refusal on all the best items that are coming and dominate the market like it has not been done to date. Many of us have seen how Petco was able to use the exact same strategy to hog up cultured clowns when they have new store opening. In business the biggest buyers are the one who make the rules. A quick study of the WalMart success proves this. Certification puts a brand name on the fish. A MAC certifed yellow tang at Petco is the same fish as a MAC certifed yellow tang at my store. There is really no way to justify to the public why one would be selling higher than the other. The public don't give a rat's ass if that certifed wholesaler charged me 30% more for my yellow tang than they did Petco because Petco used muscle to get better terms. It would be best if everything just sells for the same price everywhere and let other factors decide who gets the sale.
If it gets to the point where a suggested selling price is accepted then having the best variety will be a huge advantage and I'm pretty sure the Petco people are on the ball enough to realize this. This is a potentially very dangerous game we are playing, and so far I have seen no evidence that it will turn out well for the independent retailers or etailer. NONE WHAT SO EVER.
Mitch
The market will run by itself.
If, what you described actually comes to be a reality, sooner or later a group will form to represent "the other" buying power and wrestle for the availability.
We cannot blame Petco for their strategic plays. It's the "others" that need to unite and start to work together. If everyone only want to fight for themselves, unless you have things that can set you apart from the big guys, otherwise you will not survive in the competition.
The survival of the fittest. Cruel and unfair, but that's the simple fact.
If, what you described actually comes to be a reality, sooner or later a group will form to represent "the other" buying power and wrestle for the availability.
We cannot blame Petco for their strategic plays. It's the "others" that need to unite and start to work together. If everyone only want to fight for themselves, unless you have things that can set you apart from the big guys, otherwise you will not survive in the competition.
The survival of the fittest. Cruel and unfair, but that's the simple fact.
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