Is this fair?

[dizzy]

This is the way it was explained to me by one wholesaler. I hope he doesn't mind my posting this, but I feel it needs to be explained. Different wholesalers probably have different policies. It doesn't seem to bad, but not having to pay to get the stuff freighted in allows you to sell cheaper if you so desire. Perhaps it should be offered to any legitimate retailer/etailer just to be fair.
Mitch


"I am wondering if you think it's fair the way we do it for some companies. We firstly do not give any discounts to etailers on anything! They pay the same as everyone else....actually more. We charge a $7.50 service fee PER ORDER and the regular box charge. So on orders that are $50.00 or so, which is the average, they have to pay over 10% in fee's just to have it packed and shipped. "

 

[danieldm]

Mitch-

But that's the etailers choice. They can make those monetary concessions because they don't have to house the fish at all, they don't have to have the infrastructure of a B&M.

What about this wholesalers B&M customers that had to sign an ageement that the purchase minimum was $250 or $350 or $500? That these minimums were the wholealers policy for their customers? (but not really all their customers as was implied) As long as this wholesaler isn't hiding this arrangement from their B&M customers I don't have a problem with it.

It still stinks of not being a level playing field with the B&M.

 

[dizzy]

As long as this wholesaler isn't hiding this arrangement from their B&M customers I don't have a problem with it.

It still stinks of not being a level playing field with the B&M.

I totally agree with you Daniel.
Mitch

 

[Rascal]

I'll have to do the math but I'm pretty sure my overhead comes to just a little over 10% of cost of goods sold. Like I said, I'll have to check :wink:

 

[dizzy]

Just maybe the etailers are smarter than us retailers. Or maybe the wholesalers like them better.

 

[Kalkbreath]

Their gonna piss off the 5000 brick and mortars to sell 50 dollar orders?
"which is average" ...........?

 

[danieldm]

There gonna piss off the 5000 brick and mortars to sell 50 dollar orders?
"which is average" ...........?

Why not, none of them have done anything to challenge the practice. The vast majority of B&M don't even know they should be pissed off.

 

[Rascal]

Ding Ding Ding

That is the absolute best point I have heard this week. And that should be our focus.

 

[dizzy]

And they are to cheap to send the $50 to join AMDA. What exactly do you mean not done nothing to challenge the practice? I'm running out of wholesalers and etailers to tick off. :wink:

 

[danieldm]

Mitch-

I was speaking in a generalized context. Sure there are some B&M people that are more knowledgeable (yourself & Jenn for example) in what is going on than the vast majority of B&M owners. I'm not going to say that you, or the AMDA hasn't tried to do anything.

From your response it sounds as if you have done something to challenge it, but not to my knowledge...so enlighten me.

 

[danieldm]

Mitch-

Let's say I was a new B&M, and I was interested in joining the AMDA. I just looked at their site, and from the information there it looks like my $50 gets my name on a members roster (that's hoping that someone is upkeeping it), and a link to their most recent newsletter detailing their projects and such...from 2003! Tell me what there is on the AMDA site that would even encourage a B&M to join?

Don't complain about no one joining the AMDA when the site has absolutely nothing to encourage participation. From the looks of it, it either hasn't been updated in 3 years, or they are doing so little that it hasn't warranted a newsletter in the last 3 years!

If not for the site, then how is the AMDA soliciting new members? What benefits should a new member expect for their $50?

 

[danieldm]

sorry, double post

 

[JennM]

Sort of back to the topic at hand...

I was at a local dry goods wholesaler one day. I don't buy much from this supplier but it's my "back up" supplier if my regular one is out of stock, or if I need something in a hurry. I don't get volume discounts from this supplier, however if I pick up my order instead of them delivering it, they give me 15% off. I can get their specials pricing on items, even though their sale book says I need a minimum order of $x worth of regular merchandise - nobody has ever made an issue of that.

I was at the window to pay for my order one day when a service guy came in to pay for and pick up his order. Through listening to the conversation he had with the clerk, I gathered that he pays a surcharge above the wholesale list cost. I think the item he was getting (a tank) was on sale, but he still had to pay the surcharge. I was pleasantly surprised

Then the service guy asked me a question about what I pay and I just avoided a direct answer - I did not want to let on that he was paying more - but since I run a store front and he runs a rusty van, I think it's fair and reasonable that I get a better price than he does. I order more, even though this is a backup supplier for me, I have higher overhead, thus I should get a better price, IMO.

My regular dry goods wholesaler (and other wholesalers) were selling to a guy running a garage-based ebay store, and using another B&M's storefront to order his stuff. Word got around locally and we B&Ms expressed our displeasure with this wholesaler and put pressure on them not to engage in this practice as it was undermining us. That ebay seller eventually opened a storefront of his own.

I could never understand why the other B&M would support this, unless perhaps it helped his volume discount with the wholesaler - although it directly hurt his own business. The ebay dude was selling all over the place, but he had a lot of walk-in and local pickup business too - and this eventually bit the hand that was feeding him.

Last I heard the ebay guy was still in business with his own website, but his ebay site was shut down in July for reasons unknown to me.

Jenn

 

[clarionreef]

Daniel,
IF you have a Democratic organization...you may often find yourself unable to force your will and rule absolutely as an organization that has no such Democracy.
People in clubs across this land know exactly what I'm saying.
Any club that does this is ruled by a dictator type and such a thing is anathema to many of us.
However, groups like that don't suffer the divisions, the debates and the polarization that the Democratic groups face.
AMDA was often split down the middle on critical policy and it is inaccurate to characterize it as a group that could've moved effortlessly in any direction.
Just keeping it out of MACs pocket was hard enough!
Forging the new covenant with MAC and CORL took a lot of time and energy.
The decision to redefine what it ment to be a marinelife dealer...still months more debate to forge consensus.
The mission itself was questioned. Was it as intended a reform group as John Tullock intended, a chamber of commerce for elite and elitist retailers or a star wars bar where anyone who ever sold a frag in the parking lot of a retailer was welcome?
What? What should such a group be?
We've seen that theres little consensus here either.
But people are reading and learning.
Steve

 

[dizzy]

First I guess I need your definition of challenge. I believe I already explained that I was instrumental in getting the AMDA BOD to agree that dropshipping did not fall under our standards of practice. And if the truth were known I probably had a lot to do with getting Dr. Foster to explain that they do it. And I do appreciate his honesty. Read Burton's letter again and guess who had a little influence there. Sounds to me like Burton is challenging retailers to wake up.

I'm not going to mount some sort of legal challenge, because I don't think it is illegal. I do have some ideas on how we can quickly make almost all the retailers aware of the practice. One is an article in Pet Product News explaining current industry trends. Another would be a letter that we give our drygoods wholesalers to include with their monthly sales flyers. I've already spoken with a fairly large one concerning this matter and they agreed to help. It is really in their best interests not to let the etailers kill retail. So what do you mean by challenge exactly?
Mitch

 

[dizzy]

Daniel,
Burton runs the web site. Steve is correct in his posting. Not everyone wants AMDA to stick up for retailers. However I think with Burton's letter he makes it clear the direction he wants to take it. If retailers agree that sticking up for retailers is the right direction then I think they should join and voice their opinions. And if people want it to go in another direction they should join and express that too. It should be up to the will of the majority of the members.
Mitch

 

[Hobbyist]

Hey, how about that! No one has attacked anybody personally and someone actually developed a legitimate plan for beginning to deal with the issue.

I will add, however, that it seems that the wholesale drygoods issue needs to be addressed as well.

 

[danieldm]

Steve-

AMDA was often split down the middle on critical policy and it is inaccurate to characterize it as a group that could've moved effortlessly in any direction.

I don't think I characterized them in that fashion. I would be happy if I saw movement in any direction. I know how hard it is to get anything done. How could an odd numbered board be split down the middle. It's one thing to be in the picture that yopu are paintuing. But I can't see that the AMDA has done ANYTHING in the past three years.

Every thing currently in place to "help" the industry (MAC, AMDA, etc.) are laughable. Each in their own way have proven that they are a waste of support, investment dollars and time. I come from the corporate world where you deliver results, or you deliver pizzas the next week.

 

[dizzy]

Every thing currently in place to "help" the industry (MAC, AMDA, etc.) are laughable. Each in their own way have proven that they are a waste of support, investment dollars and time. I come from the corporate world where you deliver results, or you deliver pizzas the next week.

If your willing to work for free I'll recommend you for a spot on the board and you can show them how it's done. Buy and large retailers have not shown that they are worth trying to save anyway.

 

[danieldm]

Mitch-

First I guess I need your definition of challenge

Challenge - Verb - Doing more than talking about it, or simply revising your standards (I'm sure that had them quaking).

I have no interest in being a member of a failed organization. AMDA would need to commit to an overhaul before I would even consider such an idea.

I hate a hypocrite or someone that just pisses and moans about a problem...don't piss and moan unless you're willing to offer workable solutions. I'd hate to put myself into that category, so here I offer some solutions.

1) Reorganize AMDA
The group needs to decide exactly who they represent. You can't try to represent the retailers, wholesalers, manufacturers, etc. They all have different goals! How can you get support for an issue that benefits the retailer, but hurts the wholesaler? No wonder, as Steve said, the board was always split. You have so many groups involved that not only are they not on the same page, but they're not even in the same library.

2) Assuming that the AMDA was reorganized as a retail advocacy group...create an action list of the top 10 serious pressing issues, and the top ten "low hanging fruit" isues. Knock out a few of those low hanging fruits to get easy, quick wins to show that you are capable of action. Then create a project team, with a project manager that is directly responsible for results and start going after the serious issues one by one. Every now and then knock off another low hanging fruit to mainatin synergy and morale.

3) MARKET, MARKET, MARKET

4) Build the member base through agressive recruitment!