Is this hurting your business?  Does anyone know?

DOES ANYONE CARE?

Most suppliers’ dream of getting into one of the big chains. It’s a major payday for some but how does it affect independent retailers? Most vendors try to excuse the effect it is having on our retailers by saying things like

“Well they can’t offer the individualized attention that you do” or “you can compete with the chain stores by offering classes” and the list goes on. The reality is that the Chains are killing the independents and everyone knows it. Pretending it isn’t happening isn’t going to make it go away. Sure there is a lot the independents can do, but 70% of the buyers look at price first. Sure you may get customers coming to your classes, but their scrapbook bag is full of product from Michael's. You may sell some scraps here and there or last minute needs during a class, but the bulk of your sales were lost to huge discounts that in most cases are well below what you paid for your product in the first place.

Retailers need to sell more than stickers and paper to pay the rent. The high dollar items are essential to a healthy bottom line but why would anyone pay full price at a mom and pop store when they can save 50% at Michael's every week? If anything, some customers think they are being gouged by the independent stores because their prices are higher.

We have discussed this with many vendors and they know what we’re saying is true they just don’t want us talking about it.

It’s hard not to talk about, when retailers are going out of business like crazy. 10 to 20 stores are closing every month. There are more reasons for this than the chain stores, but this doesn’t minimize the devastating effect the chains are having.

Enough complaining! As asked before can anything be done about it?  We think so, but the better question is do the independents have what it takes to insist on change?  The associations that claim to "work for" the independents haven’t done anything to help the situation.

Abraham Lincoln once said  “a house divided against itself cannot stand”. This was many years ago on June 16, 1858. Although that was a long time ago, the words couldn’t be any truer today.  As long as our retailers fail to unite and fail to stand together in support of the right vendors, they are destined to survive off the scraps given to them.
So what about a solution?  We do not fault vendors for selling to the chains, or even for offering their greatest discounts to the chains but we do take exception to doing it without rules. We know the independents can compete side by side with the chains, but when they are expected to fight a fair fight with one arm tied behind their back, it’s time to step in. Discounting to the chains is not the problem, but allowing the chains to ruin the price point by selling so cheap is bad business for everyone. Once the price point has been damaged why would anyone want to carry the product anymore? If you have to sell a product at your cost just to move it, what’s the point?