Should it not be a level playing field for all ? and is it Legal ?

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Permalink Reply by Dan on 22 July 2008 at 11:42am

I too have experienced this. Though you tend to find the elite manufacturers have fair distribution chains they wouldn't want to upset no matter who is pulling at the other strings.

I'd say go fish for their three competitors and stock them all with pride and discounts and hit them where it hurts - in their pockets!

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Permalink Reply by floor & wall solutions on 23 July 2008 at 12:58am

Thanks Dan, how did you know i have done these terrible deads already and await the reps call from ******************* and politly inform them to get ******. It's good to be alive...
Dan said:

I too have experienced this. Though you tend to find the elite manufacturers have fair distribution chains they wouldn't want to upset no matter who is pulling at the other strings.

I'd say go fish for their three competitors and stock them all with pride and discounts and hit them where it hurts - in their pockets!

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Permalink Reply by David Goff on 25 July 2008 at 1:17pm

In answer - you are in a difficult position. We work hard to protect our area and we do have agreements that allow us some exclusivity - this works for the suppliers as well as their product is not becoming "diluted" and you dont have two shops nearby discounting to get the business. Also there is significant investment in samples (on both parts) some of the ranges we do can be £20/£25 a sample board, certain suppliers we have to take their whole range in which could be a £400 - £500 spend on our part just for the samples.
Suppliers will not want to upset an account that is a long standing - pays promptly and turns over £X0000 a year. When suppliers have gone into a showroom a mile up the road we have given them a choice supply them or supply us.
I have worked in retail all my life - its like this throughout retail, think of it like an unofficial franchise. I f you were 25 years established in a Showroom you wouldnt want someone opening near you - selling the same product and sniping at your price.

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Permalink Reply by floor & wall solutions on 26 July 2008 at 2:21am

David.
Thank you very much for your valued opinion. I understand the points you raise but i am affraid i don't agree with the concept that because you are a long established company THAT WE ARE THE ONLY TILE SHOWROOM IN THIS TOWN and use the buying power you have with certain manufacturers to ( what may be a sole traders efforts to make a living ) hold them to ransom and thwart any possible competition that may give local consumers a choice. There are many difining issues that will detrmine a customers preference but surely the larger established company has the upper hand ? i do not wish to offend any person or company with regards to this matter and i certainly wouldn't have a swipe at others pricing structure if i thought it was warranted. Just out of interest when walking down any high street in the land how many shoe shops, greengrocers are next door to each other ? thanks for taking the time to reply anyway and best wishes.

David Goff said:

In answer - you are in a difficult position. We work hard to protect our area and we do have agreements that allow us some exclusivity - this works for the suppliers as well as their product is not becoming "diluted" and you dont have two shops nearby discounting to get the business. Also there is significant investment in samples (on both parts) some of the ranges we do can be £20/£25 a sample board, certain suppliers we have to take their whole range in which could be a £400 - £500 spend on our part just for the samples.
Suppliers will not want to upset an account that is a long standing - pays promptly and turns over £X0000 a year. When suppliers have gone into a showroom a mile up the road we have given them a choice supply them or supply us.
I have worked in retail all my life - its like this throughout retail, think of it like an unofficial franchise. I f you were 25 years established in a Showroom you wouldnt want someone opening near you - selling the same product and sniping at your price.

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Permalink Reply by David Goff on 26 July 2008 at 3:21pm

It is not just the individual shops who tie up areas, many of the key suppliers are keen to have "one shop - one area". They want loyalty from the shop in which they invest in (be it money, display stands, marketing materials)
If you want to look at the High Street analogy - look how they are protecting certain brands like Kenzo, Guerlain, Christian Dior, and Givenchy - you can no longer sell these brands on Ebay.Google "ebay perfume ban"
What about Tesco and Levi jeans
Why can you only buy Porsche from one showroom in Leeds.
Have you been watching "Mary Queen of Shops" ? Many of the stores she helps have to go cap in hand to suppliers and sell themselves to be able to get specific brands or ranges.
Companies and corporations spend billions on brands and brand awareness, and setting up franchises and dealerships.

Not all the brands will be tied up, I would research and put together a list of whats available where - see who you can get a toe in the door with. I would also speak to your local business link, who will assist you with a marketing strategy, so you can then go back to the suppliers you want to deal with, armed with a plan.

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Permalink Reply by floor & wall solutions on 1 August 2008 at 11:41pm

My sincere apologies for the late response regarding your very informative post. I have recently been blessed with a new arrival ( little Girl ) who has pretty much worn me out just lately. i personaly have a thriving business manufacturing bespoke aluminium,brass and stainless steel profiles for flooring contracts throughout the UK and find myself fortunate not to have a great deal to worry about regarding the tile showroom i have opened in Notts. i have found it be very frustrating though with the closed shop antics of suppliers who i respect feel the need to look after there main interest locally. Not to be given a fair crack peeved me somewhat even though i can only keep chipping away at the market As mentioned i am in a fortunate position where the only way can be up. i think the points that you have made can only stand others contemplating a new venture the insight to make a true go of it. i wish all the brave people who have taken the chance every little bit of good fortune that they deserve. Thank you.

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