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WOW. You guys have blown me away again. I never expected the response I received on the question I posed last week. I must be honest with all of you. I posed the question as a reality check. I get so annoyed at vendors that bite the hand that feeds them and actually sell to the customers of their accounts. But after getting taken to task by a couple of vendors, I wondered if I had become old fashioned or out of step.

Thank you for your over whelming support of my position. The numbers were running 87% opposed to any vendor selling direct, 11% said it was OK if their prices were equal or above the price at the store and no free shipping either. 2% of the responses didn’t care what the vendor did. They don’t trust them any way so why even care.

Here is a small sampling of the responses:
(When I say unknown, I mean I am not sure of the type of business or their location.)

From a Gallery in the Northeast

Each sale they make in my backyard is one less for me…

From a Gemologist in the Midwest

If a vendor needs to sell direct, perhaps there is a fatal weakness in the business model.

From a Golf Retailer in Northeast

Callaway Golf uses Shopatron, which you mentioned in a previous column.  We are enthusiastic about the Shopatron. Other than that way there is no way it can work for the retailer

Unknown

Put this down as a very strong vote for vendors selling only to their wholesale accounts, leaving the retail to retailers

A Women’s Specialty Store in the Northwest

I agree 110% with your position about suppliers selling directly to the public!!!   You can’t play both side of the fence and do either well!

Unknown

I say NO. If I am supporting the vendor by giving space, time, and hands-on selling to that vendor’s product, then the vendor should support me by sending business my way. If the vendor sells direct, then he is taking advantage of my work in promoting his product and educating the consumer.

Unknown

Easy … Vendors SHOULD NEVER sell direct to the consumer!  Thanks for asking. 

From a Dance Store Retailer

Rick, I feel that vendors may sell directly to the customer, but ONLY at a full markup price.  By doing this the vendor is establishing a standard value for their product.

From a Boutique

Saying that this practice offends me may be going to far – but I know that as my boutique develops, I will support those businesses that support me.  It goes beyond sales discounts and free shipping.

Online Gift Merchant

My primary beef is with companies that start out as wholesale only and then, after a number of years of selling through retailers only, decide to open an online retail store. (One such product we sell is from a pewter tableware manufacturer that not only now sells online but also offers free engraving. A service we are not equipped to provide.)

While your first thought is to dump the product line, you hate to do so because of all the time and money you’ve invested in the promotion of the product.

We, as an online retailer only, are now in direct competition, with the manufacturer mentioned above, not only for product but also Internet advertising!

From a Card and Gift Retailer

We have several suppliers that sell direct to the consumer.  Truthfully, this probably has not affected our sales of their product.  What is has profoundly affected is the attitude of the consumer.  Retailers become the outlet of convenience - “it is on the shelf I can buy it and have it right now.”  The manufacturer becomes the in depth resource - it takes a few days to deliver but they stock the entire line!  How can we compete against that?  We cannot.  So, we either grit our teeth and accept that this is the way things are.  Or we jump ship to another product as soon as we can. 

From a Coin Dealer

There are also a couple other pet peeves I have.  One is the publishers of a major coin  publication, has begun selling coin supplies including some of their own products.  They have a special discount for subscribers.  We are also asked to be advertisers in their publication..  I don’t care for that.  

From a Party Store

Don’t get me started. NO. Never sell direct to the consumer. And Never become your customers competition.

From New Hampshire

If more retailers would take the stand and refuse to buy from vendors that want it both ways, then the signal to them would be loud and clear. 

From a Jeweler

It seems to me that this is an outstanding example of a situation which should be addressed by our associations. .  Please continue to keep this issue in front of all us.  A solution needs to come before the industry is totally corrupted by this behavior.

Unknown

A Vendor can and should sell to consumers as part of an overall campaign to develop brand popularity, but:

1. Always at a price higher than their highest markup retailer would expect to get.

2. Always with a complete disclosure of the program to its retailers.

From an RV Center

I WILL DROP ANY MANUFACTURER WHO SELLS RETAIL. THAT MAKES THEM MY COMPETETOR AND  MY SUPPLIER.  THAT RELATIONSHIP BRINGS UNFAIR COMPETETIVE ADVANTAGES WITH IT.

From the Northwest

This is one factor in creating a real issue in the store: customers writing down websites that are pre-printed on products in hopes that they will go home and find it cheaper on line. While we always attempt to remove these website addresses, it is sometimes not possible. Even if the website is not printed on the product customers are now armed with the knowledge that many suppliers direct retail and they record the company name in order to go home and Google them.

From New Hampshire

It is unfair and anyone that argues that point is just being oppositional.  Most vendors we deal with could kill us on Pay per click ads and direct mailings because their bank accounts and marketing budgets are larger.  Why are their budgets larger, you ask…because of all the stuff we (independents) buy from them.  Not fair, period!

From a Gift Store in Wisconsin

Let’s face it, we as small retailers, brick and mortar, in an ever changing world of e-commerce etc., are screwed!  The MAJORITY of my corporate vendors don’t give a rip who is selling their stuff and how much it is being sold for.

Unknown

Wholesalers who open retail stores are pigs. They are greedy and stupid and I don’t say this unadvisedly. Because they have overexposed themselves and ruined their market.

From a Gift Store

You have hit a sore spot with me and our company.  Case in point is a  Brand , greedy little %@@%@ that they are.  We are a 9 yr old business and have carried their products for close to 8 years.  We have marketed their product heavily in our area and have seen the fruits of our labor with consistent annual growth of 10-25%.  Not only do they sell via internet and direct mail, they have their own retail stores.  Last month was the final straw as it was announced that they are opening another retail store in my backyardL  We have invested thousands and thousands of dollars in marketing and giveaways of their product over the past 8 years to build brand recognition in our area only to have a 9″ dagger twisted into our back.

From a Health Food Store

I refuse to compete with online prices.  I have customers coming into the store telling me they brought a product online for LESS than I pay for it wholesale!!  Where is the logic in that?  If the consumer wants my expertise and my knowledge, then they have to come into my store to receive it.  Yeah, go ahead and buy that product online for less.  Good luck when you have an adverse reaction or question. 

Unknown

Hi Rick. My view is that vendors should be able to sell to anyone. However there is a difference between the general public and a retailer. Isn’t that what we mean by wholesale. A retailer buys a product at a discount which is resold at a profit. Why would a vendor sell direct to the public at the wholesale price? Is their product such that they don’t need retailers? If so why do retailers want to

From a Vendor

It’s normal in many industries for a manufacturer to manage multiple distribution channels — direct, 1 step, 2 step, and sometimes even more.  Selling through more than channel, including direct, is fine, so long as you know what each channel is for, communicate that to all of your customers, price and service accordingly, and do so consistently.  Obviously direct consumers should receive MSRP pricing, not distributor pricing.

Unknown

I now have a policy of only purchasing from vendors that support their retailers and do not compete with them.  I’m discontinuing all other lines and I keep on walking when I encounter vendors that sell directly to the consumer.  I’m happy to compete with other retailers, just not with my own suppliers.

I learned a long  time ago never to give a manufacturer my customer list.  Years ago under the pretense of a contest a very reputable company obtained the  names of some of my customers for a “drawing”,  The next season the manufacturer used the names to  send direct mail to my customers.    I was extremely upset, but to my satisfaction,  the company went under the next year.  Again I repeat–manufacturers should be manufacturers and allow us retailers to be retailers.

From a Gift Store

I HAVE NO PROBLEM IF MY VENDOR SELLS DIRECTLY TO THE CONSUMER AS LONG AS THEY HAVE A NORMAL MARK-UP.