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This Supplier Wants to Hurt You! PDF Print E-mail
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A previous PromoTips...Tip addressed Suppliers who sell direct and I suggested that we not worry too much about "Bad Suppliers" and all of the titillating industry controversies. I made the point that we should build stronger relationships with our clients and focus on the positive aspects of our great industry.

 


A Supplier e-mailed me with comments that you will find interesting. While his response is somewhat shocking, he does make a valid point about Distributors buying direct.  The traditional Supplier/Distributor model is a two-way street, and we need to support the existing business model.
Clearly things are changing in the industry and suppliers like this may be out to "hurt you." Here are his unedited comments: 
 

MESSAGE: "Hi, I am a supplier and I am selling direct. In 2003, our revenue was only $1.5 million by selling promos to distributors only. But in 2004, our revenue increased to $2.8m by selling direct. This year, we are seeing over $3.5 million. Well you may call us a "Bad Supplier," but let me tell you what's going on in the industry and how wrong you are. End users, distributors, suppliers, and manufacturers form this industry: Usually, suppliers sell products to distributors. Starting from 2002, distributors started buying DIRECT from the manufacturers. Now it's time for our revenge. If you hurt us, we will hurt you. This is how the world is running. Now 90% of my friends (they are suppliers) say they will sell direct if they have any chance. Because there are BAD distributors in the market buying direct, more and more suppliers are willing to become BAD suppliers selling direct. They are equally BAD, but the end users said we are the nicest and the best.

New question: Distributors buying direct?  What's right in the industry?"

POINT TO PONDER: Can't we all just get along?

 

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