This Supplier Wants to Hurt You!

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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?

Comments

0 #3 2008-06-28 11:02

\"Selling direct to users\" may be a way for this Supplier to survive, and I undersand that.

HOWEVER, what is NOT acceptable is the stealing of clients away from the Distributors who book orders with Suppliers like these.

This Supplier should be asked what his personal ethics are: Does he/she think it\'s okay to market to prospects he/she obtained while serving as a Supplier to a Distributor?

0 #2 2008-06-18 11:38

If all the distributors started buying direct we would soon not have suppliers to sell to the smaller business like myself who are just getting started in this business. We also need to look at if we all started buying everything direct we would soon not have stores in our town to go buy a gallon of milk when we ran out and don\'t have time to order direct. I think we all need to think about this and not only think about ourselves but everyone in the world.

0 #1 2008-03-20 08:05

When you listed the sales of the supplier above, I must say they are small potatoes as our company does more volume than they do. Obvioucly their atitude affects their sales as this person\'s letter definitely possesed a lack of professionalism and immaturity.

I NEVER go direct for large orders, regardless of the siginificant volume of calls we receive from manufacturers overseas. I have great relationships with the suppliers I use and would never step over them to make a few extra dollars.

Could you please post a list of suppliers that go direct so I can be sure to NEVER buy from them again.

Revenge never helps anyone in any situation. I have to say I am overwhelmed by this supplier\'s hostility.

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