COLUMNIST
Left: Ed Avis is the executive director of the National Costumers Association Contact him at executivedirector@costumers.org.
Costume shops and costume manufacturers have a symbiotic relationship – they need each other. And when both parties are getting what they want, that relationship is healthy. But sometimes that relationship becomes a bit unhealthy. Like when suppliers start competing directly with retailers online.
Stores tell suppliers: Stop competing
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hat’s one conclusion from a survey NCA members completed in April. One question in the survey asked: ‘What factors play into your decision to purchase a particular product?’ Respondents could choose from four replies: ■ Plays an essential role in my decision ■ Plays an important role ■ Plays a small role ■ Plays no role 23 NCA retailer members completed the survey and 16 of them (70%) chose ‘plays an essential role in my decision’ when the factor was ‘whether a supplier competes with me online’. No other factor ranked as high. The two closest were ‘discounts are available for NCA members’ and ‘the product will be perceived as high quality’, both of which had 14 responses in the ‘essential role’ category. It is interesting to note, however, that four respondents (17%) said that suppliers competing against them online played ‘no role’ in their decisions. Zero respondents chose that response for the
discounts and quality factors. So, evidently, some members don’t care about supplier competition. The topic of suppliers competing with stores came up again during an online panel discussion on 14 May
titled, ‘What buyer members want vendor [supplier] members to know’. Two panelists mentioned that they hate it when suppliers try to force them to adhere to minimum advertised prices (MAP) but then don’t enforce those rules on big-box retailers, or worse yet, sell on their own site for below MAP. “That is the worst thing that you can do,” one panelist said. “You’re hurting us. It’s already hurting us when you’re selling to people like Target and other stores at a lower price than you’re selling to us at. But then, when you’re suggesting the retail price be such and such, but on your own store, you’re selling it for less than that, that just hurts us.” On the other side of the coin, praise was heaped on suppliers who understand the struggles small retailers face and especially those who are sensitive to the pricing situation. These days it’s understood that most suppliers sell their own products online, but undercutting retail prices simply makes it difficult for retailers to compete. So the message to suppliers is clear: Please recognise that your wholesale customers need your respect and consideration, not your competition. Below: Suppliers competing with retailers online was the top factor playing into retailers’ decisions on whether to stock certain items.
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