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dizzy

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I'm posting this for Burton Patrick.


Response to Race Foster's thread on AMDA:

I don't think it is hard for folks to understand why bricks and mortar retailers need a voice. In earlier postings Mr. Foster bragged about how they have the best fish because they pick them before retailers are shipped their fish. I don't blame Foster and Smith for setting-up this sweet deal, but I sure blame the distributors for allowing it. If any retailer buys from a distributor that allows this cherry picking practice then he/she is digging his own grave. If an e commerce guy or hobbyist was the head of AMDA do you think the local retailer would get the time of day. None of these scenarios help the local retailer or the beginning hobbyist that relies on us.

The AMDA group believes that the bricks and mortar retailer is the cornerstone of the hobby. We believe that aquatic hobbies are a hobby of relevance. We believe that the local retailers need to be aware that for years e commerce companies and various other businesses and groups were allowed to cherry pick their fish before the independent retailers of the hinterland got theirs. The reasons for being upset are obvious. This isn't e commerce's fault. But we sure don't have to recognize e commerce as compatriots. They are competitors and their way of doing business is a lot cheaper to run than ours. I don't complain that we have to compete. I complain that we are being taken advantage of in the grand scheme of things.

For years non-retailers ran AMDA. But retailers were the primary supporters of AMDA. We felt it was time for the retailers to have a voice. Now they have a voice. The big box stores, manufacturers that support them at the expense of local retailers, and e commerce may win this struggle, but at least now we have a voice. This organization was used as a soap box for the benefit of businesses that wanted to toot their own horn and causes other than the one that really counted. The survival of local retailers.

E Commerce and the big box stores don't want to be part of the building of the hobby. They just want to take from it. E Commerce doesn't want to ship fish tanks, sell a teaspoon of live brine shrimp, or sell dog food. They don't want to be open to help a customer in need that needs help now and in person. They want to cherry pick a few nice fish that cost a lot of money that they don't even own to sell to their customers and then tell them their local retailer can't get these good fish and sell them for a good price. E Commerce didn't even have to pay for owning them to start with. They don't have the local expenses to pay for the privilege to merely exist in a community. Retailers in the field never see these animals and then e commerce wants to brag about how their fish are better. E commerce has a nice sweet deal carved out for themselves. They sell the expensive fish they don't have to house, quarantine, or show customers that they feed before they buy them.

E commerce doesn't want to send their customers a single damsel or molly via FedEx for $3 to start their tanks as part of their service. Big box stores don't want to have trained professionals in aquatics to help their customers. I'm sure the bean counters in the big box stores would rather eat nails than hire a good person for 30,000 to 40,000 a year. Maybe big box stores and e commerce should carry brine shrimp, feeder shrimp, crayfish, blackworms, tubifex, and guppies for the fish that need live food. Maybe e commerce wants to be there to show a customer how to use a filter. Maybe e commerce can get in a jet and run out to help a customer test their water.

We don't care how e commerce ships fish or to whom they ship them as long as we are competing on a level playing field. We are tied to a location and have to pay local taxes to do business in our respective towns. We have to collect sales tax. We have to be part of the community we serve. E Commerce has to do none of the above. They can find some cheap place to do business and carry out business by phone. Now if the direction of e commerce and big business is to put all local business out of business they are doing a good job, but there needs to be one organization that is there to tell us why it is happening.

Shortly the full text of my presentation made at the World Aquaculture Society Meeting in February will be posted on the AMDA website. This will explain a lot of what we want to do and who we are as an organization.

Burton Patrick
President
American Marinelife Dealers Association
 

StevenPro

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Maybe they should change the name to AMIRA - American Marinelife Independent Retailers Association. Exclude e-tailers, wholesalers, big box chains, and the service business riffraff and become an even smaller organization. Sounds like a strong business/development plan to me. :roll:
 

dizzy

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The way things are going it won't matter one way or another in the long run. Steven you can comment on this since you live in Pittsburgh. Burton said something like 15-years ago there were 100 independent stores selling tropical fish in the Pittsburgh area. Today there are his 7 stores and about 7-8 Petco and 7-8 Petsmart and only 4 other independents left. There are also the Walmart types selling fresh. Is that about right? The problem anyone trying to put together an umbrella group is going to experience is that the exact same issues affect the various groups in dramatically different ways. People only care about the ones that affect them personally and their livelihood. Service guys don't care if etailers are hurting retailers as long as their service business is going strong. And etailers damn sure don't care if etailing is hurting retailers. And service guys don't care if big box stores are hurting independent retailers if the big box stores are sending them service accounts, and selling them discounted supplies.

Under the leadership before Steve R. we had a group of mostly service people who voted to endorse MAC without consulting the brick and mortar members to learn their feelings on the matter. This was done despite the fact that I personally sent them a letter in writting asking them to let the members vote on the issue. I know you remember all of that. So in no small way the BOD you served on caused many of the internal divisions within the group that made retailers feel that retailers should be in on the decisions that affect retailers too. Mary was on that board. So was Mike King.
Mitch
 

StevenPro

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Burton's recollection of the state of the industry in Pittsburgh is not mine. In fact, I would say there are more stores now than 15 years ago. There are the Pet Supply Plus stores, PetCo, PetsMart, Petland, the Walmarts, and those ones in the malls, but I also know of no less than another 8 independents. All in a greater metropolitan area of about 1 million people.

As to my stint on the BOD of AMDA, I think that is a mischaracterization. Randy and I were/are both service guys, but I would hardly say AMDA was dominated by the two of us. Plus, Randy and I rarely agreed, including about MAC.

At the time, I was endorsing the same plan I am now, make AMDA larger and more relavent. Get rid of the regional directors and instead put in place business sector representatives. Imagine an organization with thousands of members and tens of thousands of dollars and the good that it could do for the industry versus what exists now.
 

StevenPro

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I had to look back over the AMDA BOD meeting minutes to refresh my recollection. When I was on the board, there was Randy Goodlet(service), Liz Harris (retail), Mark Scheffler (retail), Mary Middlebrook (wholesale), Rick Oellers (retail), and myself (service). (My apologizes in advance for misspelling anyone's names.) It doesn't seem like a bad mix to me.

As to the AMDA committment letter to MAC, I see that the minutes suggest working on a letter during a Jan. 14th, 2002 meeting after a presentation by David Vossleer and some very pointed questions by myself and others. I also know I was gone before March of 2002. The two meetings after the one 1/14/2002 are largely unrecorded. I believe I resigned soon after the meeting on 2/11/2002.

I could not find when AMDA endorsed MAC, but I believe it was after I left because the MAC website says it was a unanimous decision of the AMDA BOD.
 

dizzy

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Rick was definitely just service by then. Mark was prolly more service than retail. I think you served well Steven. I think everyone did what they felt was right, for their own reasons. It is a pity really because some smart dedicated people really did try to make it go. I guess we all just have our own motives. I must admit that if the etailers and the big boxes shove me out after 20-years I don't even care if the industry survives or not. I know that is selfish, but it's the way I feel.
Mitch

The New Wave
Winter 2001

IN THIS ISSUE
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The new Board of Directors is determined to make the membership truly feel a part of an active organization! This column will be featured in each newsletter and will inform you about the specific plans AMDA has for the future, what is being done to achieve those plans, and the implementation of those plans. As always, your comments and suggestions are needed and wanted...please contact a Board member!

Due to unforeseen circumstances, the elections ran a little late and the new board was not officially in place until January 16, 2001. (The first of many spin jobs) The first on-line conference meeting was held January 21 with all board members in attendance. The following issues were discussed:
Newsletter: Board decided to allow members to receive the quarterly newsletter either by regular mail or e-mail. Members will be given the opportunity to choose their preference in the near future. This will save on excess printing costs and paper waste.
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AMDA ELECTS
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Thanks to all of the AMDA membership who participated in our Board of Directors election. Below are the names, titles, and contact information for the 2001-2002 Board. Please don’t hesitate to contact any of the Board members with your comments or suggestions! They’re here for you!

PRESIDENT
Randy Goodlett: 412-606-6012
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VICE PRESIDENT
Mike King: 616-363-6835
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SECRETARY
Mark Swank-Schreffler: 616-323-3721
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Liz Harris: 850-973-3488
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WESTERN REGION
Tim Cummings: 760-347-8717
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NORTH EASTERN REGION
Richard Oellers: 207-838-9321
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Jim Rhodes: 717-671-6604
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NORTH CENTRAL REGION
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Steven Ruddy: 707-838-2492
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MARINE AQUARIUM COUNCIL REPRESENTATIVE
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clarionreef

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Steven,
I'm hoping for your opinions on Burtons letter beyond the independant retailer count in Pittsburgh.
Its a far better analysis of the issue then yet seen.
The huge list of costs born by brick and mortars that provides and enables the rest to hitch a ride is formidable.
There always was an assumption that these taxes, fees and costs were fair so long as no wholesaler would ever sell out to the public [letting the livestock become de-valued] .
As Burton said; "I don't blame Foster and Smith for setting-up this sweet deal, but I sure blame the distributors for allowing it."
Thats the "bingo" point.
What was QM thinking when they allowed dropshipping to hobbyists direct from their facility?
Until then, e-tailers had to care for their own livestock to sell it. Now theres one that just cares for the invoice.
They literally opened the gates and allowed the evolution/perversion of the invasive e-tail daywalker *to emerge.
Now the industry will never be the same.
Steve
* semi-obscure Blade reference
 

StevenPro

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I was reading my copy of Pet Business News today and noticed a wholesale company advertising that they don't permit cherry picking. Business is always changing and evolving.
 

StevenPro

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Burton's state impression (via Mitch) is that the market is shrinking and his theory is that big box stores and e-tail is to blame. But, if his impression that the market is getting smaller is false, then his theory is undermined.
 

dizzy

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Steven I want to be careful speaking for Burton, however I think he was suggesting that the growth of the big boxes and etail has come at the expense of independent stores. The market could be growing and the number of stores going down, if the big boxes did more volume in fewer locations. So in that light it would appear to be logical.
 

danieldm

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I have been in the industry as an e tailer, but only in a very small way and it was several years ago. I do hope to be back in the industry within the year as both a service guy and product manufacturer.

As an outsider looking in, reading the issue in the threads, I can certainly see both sides of the coin. There are some very competent e tailers out there that I have dealt with, and likewise I have dealt with some very competent B&M stores. The issues raised in these threads, and that were put forth so eloquently by Burton Patrick's letter at the beginning of this thread all boils down to the whether or not there is a level playing field between e tailers, and B&M.

No, there is not. How can there possibly be a level playing field when the B&M customer has to pay X times more than the e tailer to get the same fish to the consumer. So, the only way that the B&M can play fairly would be to level the field again.

This isn't much difference than a Union having a problem with an employer. So I would suggest that you follow the Union's example and do the following.
1) The B&M retailers must have an organization that includes enough stores to give it collective bargaining power. You need to call, send out flyers, etc. You must have as many B&M stores involved as possible. This doesn't have to be under the AMDA, and can just be a collective of like minded retailers.

2) You approach ALL of the wholesalers in a formal fashion and you LOUDLY voice your opposition to the drop shipping & cherry picking practices that many of them allow (even though they may say otherwise).

3) You ask them to sign an agreement, a contract, that they will not allow that type of practice within their company. This would be a legal document that would be actionable in civil court should they not uphold the agreement.

4) You play hardball, and if they won't level the field, you boycott and order from the guys that will help to level the playing field.

The only thing that many, okay most of these wholesale companies care about is the all mighty dollar. Even though they may be feeding happily at the e tailer trough, they cannot live on e tail alone. You cut them off, and you let them feel hunger pains for the first time.
 

StevenPro

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dizzy":8moqp4dm said:
Steven I want to be careful speaking for Burton, however I think he was suggesting that the growth of the big boxes and etail has come at the expense of independent stores. The market could be growing and the number of stores going down, if the big boxes did more volume in fewer locations. So in that light it would appear to be logical.

The thing is, at least in Pittsburgh, the number of stores has not decreased. It has actually increased. There have been a few small stores that went out of business, but there have also been new stores opened, not including the big box stores. If you include the big box stores, the number of new fish shops in the metro Pittsburgh area has increased dramtically.
 

TuskFish

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New to this board, but am familiar with the Pittsburgh market. One could make the argument that The Pet Supplies Plus stores have contributed just as much to the demise of the Independants. 10 years ago, there were 2 or 3 PSP's in Pittsburgh, and now there are what...7 or 8? With that buying power, not to mention that of the whole PSP chain nationwide, most independants can't hope to be able to buy anything at the same price.
The bottom line is, the bigger you are, and the more volume you do, the better pricing and deals you are going to get. Do you think If I opened an etail fish business in my garage, that I could get the same arrangement with QM that DFS does? Heck no! The bigger fish gets the worm. For every PSP franchise that complains about what PetSmart, petco,a nd DFS are doing to hurt the hobby, there are 10 B&M independant retailers saying the exact same thing about PSP's! And there are 10 more garage etail businesses saying the same thing about the B&M's.

There will always be somebody bigger than you, getting a sweeter deal. I don't blame QM for doing what they do. It's smart busniess. I don't blame DFS... again, smart business. Just like I don't blame PSP for getting the good pricing they get... again, smart business.

Just my 2 cents...
BTW,
I agree with Steven that there are just as many good independants in Pittsburgh now as there were 15 years ago.


Jimmy
 

JennM

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Well said, Daniel... probably one of the better thought-out posts I've read here in a long time (including my own!!! :lol: )

That's basically what I've been doing on my own for a long time (legal agreement notwithstanding) but one store alone doesn't make a difference. I'm a little fish in a big pond, but if there were enough of us little fish together it would add up to something.

Now that it's out there - what can we do? Where do we start?

Jenn
 

danieldm

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Jenn-

To start with, you would need a central core of B&M retailers to get things rolling. You only need a few to get started. This is how I would proceed, and let's say there are 5 core members to begin.
1) Each core member is to compile a contact list of stores carrying aquaria within their state. This should include FW and SW. To get started, you can simply go to www.att.com and do a search within your state for the "aquarium" category. I found 388 listings for Georgia. Then start weeding through them to remove Petco's, vet clinics,etc.

2) Each core member is to also compile a similar list for another state.

3) The core members need to create a very good letter to send to all of these establishments. Figuring 5 members, 10 states we would be looking at contacting a majority of pet stores carrying fish/corals within 10 states. The letter would be stating the problem within the industry, and the danger it poses to B&M establishments. It would act for their support and signature that would be placed on the letter to the wholesale industry. Then approximately two weeks after sending the letters out begin calling them to follow up.

4) Each core member needs to compile a list of 10 stores carrying fish/coral in 5 additional states. You would contact these stores and speak to the owners regarding your initiative, and the danger that their store is facing. The reason for this is that you are trying to solicit core member coordinators in an additional 25 states. If you can do that, and they compile a list for their state, then you would get your message out to 35 states total.

That would be an impressive number of B&M stores contacted. The important thing is that the only thing that you are asking from them is their support (not money), and their signature on the letter that will be sent to the wholesale industry. You also need to secure their commitment to a possible boycott if it were to come to that.

This is going to take people a lot of time, and some money in phone calls, letters, postage, etc. They have to decide if it is worth it.
 

JennM

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Wow - I am impressed :)

I wonder (out loud) if this type of thing falls within the existing AMDA's mandate? I'm not a member of AMDA, but would consider being one if this type of thing was implemented, and I could commit some time to helping - although I don't have the means to spearhead the effort.

Perhaps Mitch or another current AMDA member could chime in on this?

Jenn
 

SavetheReefs

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How does this relate to foster and smith misrepresenting over 90% of the livestock they sell? It woul dbe one thing if they were actually doing what they say they are, but to lie about it and hurt the B & Ms. If we do not dop something about it we have no one to blame but ourselves.

foster came on here and whined like he just got his kickball stolen from him at the playground. All becasue a couple of people asked him some questions.

The bottom line is, no employee of foster and smith sees, or packs the livestock he is getting drop shipped.

If all of th epeopl in the hobby knew this foster and smith would lose who knows how much money.

I think a stand needs to be made and the truth needs to be told.

SavetheReefs
 

danieldm

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Wow - I am impressed

I was a peace activist in a previous life.

Even though I am not a B&M retailer, I do expect to be back in the industry within the next year. With my wife still in the Middle East and two toddlers, I am very pressed for free time now. But once everything gets back to normal this Summer, I would also be willing to volunteer some time towards this effort.
 
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