Supplier stopped supplying me due to competitor complaining

[eco21]

Hi,

I have an account with Supplier A - I have previously purchased from them but they have now stated that they won’t allow me to buy from them due to my Competitor saying they will take their custom elsewhere.

Supplier A has never done this to any other of its customers but only to me.

I purchase from multiple suppliers anyway and always have, but would be able to buy some unique items from Supplier A.

I am pretty sure it’s tough luck but wanted to know if there was any recourse?

[randlemarcus]

Find someone else to supply the items. Pretty unique isn't unique.

[eco21]

Supplier A pulls in stock from up to 30 different suppliers. (Some of these I would like to deal with - some are unsuitable)

I contacted some of these 30 suppliers directly at a Trade Show in England (the suitable ones) that I wish to deal with but I can’t deal directly as they distribute via Supplier A and only Supplier A.

I can of course get access to some of the other ones but it’s limiting to the growth of my business.

I may have to just accept it but wanted to know if my existing account with Supplier A meant they could stop me even though I am an existing customer or does it not really make any difference. I can understand a Supplier I have no relationship/history etc not opening an account with me but having an account open and then saying no - I was unsure if allowed.

[Simpo Two]

Well if your Competitor can buy elsewhere, so can you

Equally Supplier A can stop supplying you if they wish; there's no law saying they have to.

It's not a question of 'allowed to', it's all down to approach, negotiation and the desire to do business.

So, all 30 'top' suppliers will only sell to Supplier A? You're one down in the food chain so you can pay them more - cut out the middle man called Supplier A; they make more margin.

And if all 30 'top' suppliers only sell to Supplier A, where is your Competitor planning to buy from?

It's BS.

[tumble dryer]

eco21 said:

Supplier A pulls in stock from up to 30 different suppliers. (Some of these I would like to deal with - some are unsuitable)

I contacted some of these 30 suppliers directly at a Trade Show in England (the suitable ones) that I wish to deal with but I can’t deal directly as they distribute via Supplier A and only Supplier A.

I can of course get access to some of the other ones but it’s limiting to the growth of my business.

I may have to just accept it but wanted to know if my existing account with Supplier A meant they could stop me even though I am an existing customer or does it not really make any difference. I can understand a Supplier I have no relationship/history etc not opening an account with me but having an account open and then saying no - I was unsure if allowed.

Supplier A does quick calculation: Choose between customer A (you) or customer B - the guy who spends a lot more.....
You only get to choose one.

What would you do??





However, supplier A would certainly like your business..... and you'd like to be doing business with supplier A.

Start from that premise; it's usually do-able with a bit of effort, but probably requires a face-to-face.

[eco21]

Simpo Two said:

Well if your Competitor can buy elsewhere, so can you

Equally Supplier A can stop supplying you if they wish; there's no law saying they have to.

It's not a question of 'allowed to', it's all down to approach, negotiation and the desire to do business.

So, all 30 'top' suppliers will only sell to Supplier A? You're one down in the food chain so you can pay them more - cut out the middle man called Supplier A; they make more margin.

And if all 30 'top' suppliers only sell to Supplier A, where is your Competitor planning to buy from?

It's BS.

Thanks for the reply

Competitor A buys from Supplier A (Scottish Based) who distributes on behalf of 30 other suppliers (English Based)

I intended to go direct to the 30 suppliers (English) and miss out Supplier A (Scottish) but some won’t deal with me - only through Supplier A

I maybe have to cherry pick through the remaining Suppliers and make the best of them

[eco21]

tumble dryer said:

Supplier A does quick calculation: Choose between customer A (you) or customer B - the guy who spends a lot more.....
You only get to choose one.

What would you do??





However, supplier A would certainly like your business..... and you'd like to be doing business with supplier A.

Start from that premise; it's usually do-able with a bit of effort, but probably requires a face-to-face.

I went face to face. Said would write cheque for equal value to Competitor A bought (12 month period) and would have it as a Credit and use it through a 12 month period. If I didn’t use it in 12 months that would be my short fall. I said I also don’t mind if you sell to Competitor A at the same time.

I thought would allow him to guarantee his income would be same as last year (my cheque) before I bought potentially more and furthermore would more than likely would be even more based upon fact Competitor A may/may not buy as well.

[Simpo Two]

Waded in and bought a year up front - nice work!

[eco21]

Simpo Two said:

Waded in and bought a year up front - nice work!

Yeah....... but still wouldn’t supply me

[Busterhighmen]

Alternative view -

Supplier A won't supply you because he knows you've been trying to go behind his back and deal directly with his suppliers, thus cutting him out.

Competitor has asked them to do something they wouldn't normally do, but with your history of trying to take business away from Supplier A they have accepted the deal as a means of competitor being able to increase their business with them + not screw them over.

[eco21]

Busterhighmen said:

Alternative view -

Supplier A won't supply you because he knows you've been trying to go behind his back and deal directly with his suppliers, thus cutting him out.

Competitor has asked them to do something they wouldn't normally do, but with your history of trying to take business away from Supplier A they have accepted the deal as a means of competitor being able to increase their business with them + not screw them over.

Cheers for the the reply.

I only tried to “go behind” Supplier A after they stopping supplying me based on competitor complaining - not before - and after me offering to buy 12 months up front and then refusing it - not before.

Would ideally buy from Supplier A as they take in from lots of other Suppliers and would allow me to buy from them at a slightly higher item cost but be able to Pick and Mix than buy direct at lower cost but higher minimum order.

[jas xjr]

Is it an online business or a physical store ?

[eco21]

jas xjr said:

Is it an online business or a physical store ?

Physical store

[jas xjr]

I had a similar problem a few years ago. Had deliveries to a friends premises who was in the same industry. The rep guessed what was going on but kept quiet. It was not the competitor complaining but the suppliers policy. One customer per town.

[eco21]

jas xjr said:

I had a similar problem a few years ago. Had deliveries to a friends premises who was in the same industry. The rep guessed what was going on but kept quiet. It was not the competitor complaining but the suppliers policy. One customer per town.

Its not a geographical reason that they won’t supply as supply business literally across the road from each other in another part of Scotland.

I thought of something similar using a friends companies address but felt was more hassle (coordinating shipping as items are live so can die in transit if not shipped punctually)

[Si1295]

Who have you spoken to at the supplier, a rep? If you haven't spoken to someone at the highest position you can get to/will care then I would

[eco21]

Si1295 said:

Who have you spoken to at the supplier, a rep? If you haven't spoken to someone at the highest position you can get to/will care then I would

Two of the directors - one was sympathetic but other wasn’t as much

Think I’m out of options

[silobass]

Does the supplier have a personal relationship with your competitor? Family member perhaps?

[eco21]

silobass said:

Does the supplier have a personal relationship with your competitor? Family member perhaps?

No, a long term relationship but not family

[DSLiverpool]

To stop supplying you and potentially causing business hardship for no valid reason is illegal.
Check it out with FSB if your a member.