How do big companies not notice pricing?
Discussion
I distribute stock out to my direct dispatch folk and resellers.
Noticed 2 weeks ago one of my resellers is reselling onto several others (that didn't want to talk to me in the first place), they include Next/Waitrose/Telegraph, etc.
Strange things is they have added 15% on top of the normal price on both of the products that I supply them, including on their own site.
How is it that companies this big don't do a quick check on the TM name (personally held and not attached to our business) and go direct?
Is it really that hard for them to do a quick google search and have a check, Im not in the least bit bothered as most shoppers will probably do a google price check and see that we are the cheapest on the market so the sales will and have been coming in that way. So our trademark is getting known now.
Just seems strange, but as mentioned the more that sells with the free advertising with these companies, the happier I am, but I just find it strange that no checks were even attempted.
There is one company I have not mentioned that I would like to be associated with, would if be business suicide (for that reseller to drop us) to mention it to them I can offer the products direct cheaper and the full range, not just 2?
Noticed 2 weeks ago one of my resellers is reselling onto several others (that didn't want to talk to me in the first place), they include Next/Waitrose/Telegraph, etc.
Strange things is they have added 15% on top of the normal price on both of the products that I supply them, including on their own site.
How is it that companies this big don't do a quick check on the TM name (personally held and not attached to our business) and go direct?
Is it really that hard for them to do a quick google search and have a check, Im not in the least bit bothered as most shoppers will probably do a google price check and see that we are the cheapest on the market so the sales will and have been coming in that way. So our trademark is getting known now.
Just seems strange, but as mentioned the more that sells with the free advertising with these companies, the happier I am, but I just find it strange that no checks were even attempted.
There is one company I have not mentioned that I would like to be associated with, would if be business suicide (for that reseller to drop us) to mention it to them I can offer the products direct cheaper and the full range, not just 2?
it amazes me how often you come across this type of thing where there is a cosy little relationship going on You could either assume that it's all a big backhander, or realise that distributors and resellers often add value.
IMO it'd be madness to try to cut out your channel. A far, far better bet would be to work _with_ the channel to mutually gain sales. If this gives e.g waitrose more than 2 products, then it's win win.
IMO it'd be madness to try to cut out your channel. A far, far better bet would be to work _with_ the channel to mutually gain sales. If this gives e.g waitrose more than 2 products, then it's win win.
Some Gump said:
You could either assume that it's all a big backhander, or realise that distributors and resellers often add value.
IMO it'd be madness to try to cut out your channel. A far, far better bet would be to work _with_ the channel to mutually gain sales. If this gives e.g waitrose more than 2 products, then it's win win.
Thats the plan for the moment, to get the rest of the range to these guys as the reseller only wanted 2 models to start with and I think it would work very well with the rest of the range.IMO it'd be madness to try to cut out your channel. A far, far better bet would be to work _with_ the channel to mutually gain sales. If this gives e.g waitrose more than 2 products, then it's win win.
There's a thing called a channel. It normally goes vendor -> distributor -> reseller -> end customer.
I worked for a vendor. I didnt have the resource or time to deal with the amount of end customers we had (8000 customers) but we had 350 resellers, each with a team of 10 guys give or take. Now that 8k customer base can be better served from the resellers, with the distributors in the middle holding stock and making credit agreements. Our sales structure was indirect sales, so only the reseller sold directly to the end user. The reseller bought from the distributor and the distributor from the vendor. Everyone supports that model so that everyone makes money. A pyramid if you like
The end users have a relationship with the resellers because they buy lots of stuff from them and get good services, whatever they may be. They want to hold the vendor to account when there's something wrong, or they want a discount above what the reseller can give, but the vendor and end customer dont tend to get too involved with each other.
The Telegraph and the like, will probably have a preferred suppliers list that you're not on, but your resellers will be.
I worked for a vendor. I didnt have the resource or time to deal with the amount of end customers we had (8000 customers) but we had 350 resellers, each with a team of 10 guys give or take. Now that 8k customer base can be better served from the resellers, with the distributors in the middle holding stock and making credit agreements. Our sales structure was indirect sales, so only the reseller sold directly to the end user. The reseller bought from the distributor and the distributor from the vendor. Everyone supports that model so that everyone makes money. A pyramid if you like
The end users have a relationship with the resellers because they buy lots of stuff from them and get good services, whatever they may be. They want to hold the vendor to account when there's something wrong, or they want a discount above what the reseller can give, but the vendor and end customer dont tend to get too involved with each other.
The Telegraph and the like, will probably have a preferred suppliers list that you're not on, but your resellers will be.
Thats fine with me... got 4 new stores that didn't have before, however I would like to try and help out this reseller and get them to stock more products (not just the 2) and assist them to make me more money.
Would the best way to simply talk to the original buyer and have a chat with them? Only issue might be that they need to buy at least 2 more pallets to cover the multitude of others in the range as we have 17 products, they have 2.
Would the best way to simply talk to the original buyer and have a chat with them? Only issue might be that they need to buy at least 2 more pallets to cover the multitude of others in the range as we have 17 products, they have 2.
You might find that a volume rebate to the reseller would work better. You can always ask the reseller what they can do to increase the sales. There's no harm in going around the channel, it's called direct touch, but going around and cutting out the middlemen could see your stuff pulled fairly quickly when the reseller figures out what's going on.
Wanting to increase your business and having the capability to do it is one thing, making sure your sales strategy is right is another.
Build the channel, they'll keep bringing you customers rather than just selling to one and that's it.
Wanting to increase your business and having the capability to do it is one thing, making sure your sales strategy is right is another.
Build the channel, they'll keep bringing you customers rather than just selling to one and that's it.
andy-xr said:
You might find that a volume rebate to the reseller would work better. You can always ask the reseller what they can do to increase the sales. There's no harm in going around the channel, it's called direct touch, but going around and cutting out the middlemen could see your stuff pulled fairly quickly when the reseller figures out what's going on.
Wanting to increase your business and having the capability to do it is one thing, making sure your sales strategy is right is another.
Build the channel, they'll keep bringing you customers rather than just selling to one and that's it.
Ah you misunderstand... my reseller is the one I would chat to... not their customers (telegraph/next/waitrose)... its a large company with a few million turnover, but as I mentioned the only took 2 products initially. I would like them to take on more to supply to those stores.Wanting to increase your business and having the capability to do it is one thing, making sure your sales strategy is right is another.
Build the channel, they'll keep bringing you customers rather than just selling to one and that's it.
Sure, so speaking with the sales director at the reseller might get you further into these customers. Resellers are inherently lazy in so much as they'll sell what's easiest and guarantees them money. Offering 100% of FA obviously isnt going to tickle their testicles, but if you can offer an increase in margin for an increase in revenue, then there's probably enough motivation in there for them to try and punt some more stuff on
andy-xr said:
Sure, so speaking with the sales director at the reseller might get you further into these customers. Resellers are inherently lazy in so much as they'll sell what's easiest and guarantees them money. Offering 100% of FA obviously isnt going to tickle their testicles, but if you can offer an increase in margin for an increase in revenue, then there's probably enough motivation in there for them to try and punt some more stuff on
The margins are already very healthy and they have made them more so buy increasing the price 15%, if I went any lower I would be shooting myself in the foot, plus I have a deal on with someone else that means I can't drop the price as they will be the major reseller in the UK.Gassing Station | Business | Top of Page | What's New | My Stuff