Login  |  Register          Free Newsletter Subscription
Zibb
Subscribe to Industrial Distribution
Email
Print
Reprint
Learn RSS

When David battles Goliath

Selling to the "superstores" is often as tough as competing against them

By Tom Reilly -- Industrial Distribution, 7/1/2001

So, you think it's tough selling against the big boys? It is. But there's one thing at least as tough as competing with Goliath — selling to him. One advantage of my job is that I get to work with great companies, big and small. If there is a common theme at the manufacturer and distributor level, it's that Goliath is a royal pain in the backside — somewhere in the vicinity of the wallet. Goliath isn't any one retailer: it's the persona of all of them — whether their offices are in Illinois, Georgia, Arkansas or North Carolina.

Small distributors find it hard to compete with the prices of the superstores; manufacturers that sell to superstores complain about their arrogance. I recently heard of a manufacturer that became entangled in the volume web that superstores weave. This manufacturer added extra capacity, hired more workers, and invested in systems to better serve the superstore. They built a value-added system to serve this large customer. But the honeymoon was short-lived.

Goliath's purchasing agent decided that the supplier's value-added effort was meaningless — all he wanted was a cheap price. When the supplier tried to explain his investments to better serve Goliath, the purchasing agent cut volume by 60 percent. This crippled the supplier, who requested a meeting with purchasing. Goliath's buyer agreed to meet, but kept the supplier waiting all day before he broke away from a staff meeting, in spite of a pre-arranged appointment. The supplier salvaged some of the business, but still had to lay off employees he had hired to serve Goliath.

Consider this irony: as Goliath's CEO was bragging in the media about supplier partnerships being like a good marriage, purchasing was engaging in its own form of domestic abuse.

Less sympathetic readers will say: "The supplier chose his own poison." Yes, he did. Selling to Goliath is a burden and a blessing. For many, it is a love-hate relationship: Suppliers love the business, but hate the relationship. Goliath tempts you with enough volume to choke a Clydesdale and cripples you with it. Some may argue that it's a roller coaster ride filled with thrills and spills. If you're selling to Goliath and making money, more power to you. I hope you keep making money — as much as you can for as long as you can.

For those of you that compete with Goliath, have you ever visited his realm? They wear roller blades so they don't have to slow down to answer questions. And once you get past the greeter, good luck finding someone to help you. And when was the last time you could buy just one item? Generally, you have to buy a pallet of soap or nails to get what you want.

Don't get me wrong. I like visiting the superstores. I also like shopping at the "Mom and Pop" stores. At Mom and Pop, they know my name; Goliath doesn't know I exist.

Tom Reilly is a professional speaker and author of the book Crush Price Objections. You can reach him at valuaddsel@aol.com or visit his Web site: www.tomreillytraining.com.

Email
Print
Reprint
Learn RSS

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

Related Content

 

By This Author

Sponsored Links

 
Advertisement

More Content

  • Blogs
  • Webcasts

Blogs


Sorry, no blogs are active for this topic.

View All Blogs RSS
Advertisements





eUPDATES
Click on a title below to learn more.

Resource Center E-Alert
ID Channel Report (Twice-Monthly)
Strictly For Sales (Monthly)
Distributor Management and Operations (Monthly)
ID Channel Report News Alert (As News Breaks)
The Electrical Report (Monthly)
Idea File (Weekly)
Supplier Web Locator (Quarterly)
About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscription   |   RSS
© 2008 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy
Please visit these other Reed Business sites