Monday 13 October 08 - 13:26
 

Letters

Your Letters EXTRA 10% Discount for bricks and mortar retail shops

Dear Sir, "Hands Up" all of you who think that there will be more retail bricks and mortar chandlery shops in 5 years ("none"? ). Who think there will be less ("All"? ).

15 years ago, my showroom produced an acceptable profit, and my customers respected the service we gave. It has all changed, - internet savaged pricing is here, and will worsen, prices will be driven lower and margins will suffer more.

Another change is that we lose credibility & respect with customers who think we are making extortionate additional profits in comparison to some website prices.

The "mail order company" only needs 1 minute to take the order, most of our face to face sales take 15 minutes. How many times have we spent time demonstrating products in our showroom, and the customer then goes to phone or email their order to someone on lower margins.

We cannot stop the tide, the "minimum overheads" internet mail order only companies, under current discount structures, will increase. If things continue, and more come on line, presumably they will undercut each other and the result will be lower margins.

We are always screwing reps for better deals, and moaning about prices.

Most reps use the answer, - "Price isn't everything, customers will pay extra for service".

The truth is Price always was the number one concern of 90% customers.

The customers want the service we give, but they also expect matched prices.

I have sympathy with the reps, their hands are tied by their own targets and they need the internet sellers business.

Our industry is not alone with this challenge. The FSB has recently predicted that 1/3rd of all "Neighbourhood stores" will be gone by 2010.

The only people that can satisfactorily solve this problem for our industry, are senior directors/ manufacturers who should make it "Policy" to tailor discount structures.

They could offer a set discount to all retailers, but give additional 10% to those with "substantial" bricks and mortar retail display showrooms I am told by one of our major local TV shops, that - "Panasonic" are to give an extra 10% to their "bricks and mortar - face to face retailers", also "Sony" are to follow them, and a "Third" Major is considering it.

Don't hide your heads in the sand and hope this trend will go away, Only industry pressure can change it.

I am over 60, so why should I care? It is because we have worked 7 days per week to give the best of service. So I fight in order to pay my staff what they deserve, and for the time when my business is my retirement.

Obviously most of us also need a website, and it is difficult to criticise "Internet order only" companies. If I was starting again from scratch, in today's market, would I also go that route.

If you are a traditional bricks and mortar business, let us have your opinions. Together we may get a "Panasonic" policy.

We have lived with competition, we have fought "Grey Imports", and survived recessions.

But for this challenge, we must act together. Its time to put your pens to paper.

Yours sincerely, Cedric Williams Hartlepool Marine Supplies NauticalWorld. co. uk

Seawork International 2009 - 23rd to 25th June 2009