This thread discusses the Content article: Competition: Is Someone Else Making Your Choices for You

I read your article with interest and the developments in the R* area mirror other areas where there is 'money to be made.' This development is not new and should not be surprising.

I agree that there are situations where there would be ‘sweet-heart’ deals between the manufacturer and distributer but on the other had, the overwhelming buying power of larger business can force smaller entrepreneurs out of business.

We have seen this in the Canadian marketplace by the explosion of big box stores with the concomitant demise of not only the mon and pop businesses but also larger regional ‘long-term’ businesses. I’m sure everyone has noticed that “the more I buy the larger my discount”. When this phenomenum is translated into a 100,000 order of this widget, then the savings can be staggering vs the 5, 10, 50 widgets that the smaller operations order.

Let’s face it, the economy is driven by time and money. Look around locally and see what the most successful stores are your area. They are the ones that are ‘cheap’, where you can find the greatest selection of a particular item or that have all the items you would ever need (one-stop-shopping). Look at the internet .... good prices .... no service.

So ..... is this good. No. But how do you stem the tide of human nature.

Doc

Thanks for the Feedback Doc.

Market forces reign, no doubt or disagreement on that one. They are the reason we have been able to attain such a high standard of living.

I worry about our smaller friends, although the outcome is somewhat a given. They are going to have to change their business strategies to survive and prosper.

I have seen many small business's survive this type of situation and really prosper. It requires new focus and emphasis, in particular the individualized approach that one or two people can provide in the face of competition from a large procedurialized vendor.

To your point, not sure a lot can be done about this. I thought of that while writing the article. We know these small vendors and can lend them our support (if they can compete, and we like using them). The new guys coming into this market will increasingly have less exposure to our smaller friends.

Perhaps a last major call to arms, or maybe just the ranting of a snail trying to hold back the tide.

Thanks Doc

GRAM

I think you hit it on the head with ``It requires
new focus and emphasis, in particular the individualized approach``.

In most instances if the price difference is not too great then the quality of service will entice the buyer, especially a buyer who is relying on the expertise of the seller.

Unfortunately, with the Internet world there is a new problem. A hockey/figure skating shop I deal with fits and sells high end skates. The other day I noted a sign in the shop that skate fittings will now cost $25, which will be refunded upon purchase of the skates. They are finding that customers are coming to get fitted then buy at a lower price through the Internet shops.

Money talks ...

I must admit that when it comes to bike parts that I am guilty. Too often the dealers and special shops around here sell at very inflated prices. Do I pay they exhorbitant markups (IMHO) or do I take my business elsewhere? Usually the elsewhere is south of the border (no not Mexico).

Doc

Well written Steve!

It's my experience that distinctions (price, quality, service) win the day in a good competitive environment. While I don't always like it, the ends usually justify the means in the pursuit of those distinctions; within the law.

But, those smaller businesses that achieve certain distinctions don't always gain the awareness from prospective customers.

That's why forums (such as yours) go a long way to get the word out.

Even so, if a business' practice becomes so unconscionable (but legal) to offend our sense of right/wrong, then I suppose that could lead to a boycott, but caution is needed to avoid retaliation by the business.

Jim

I live this one ... I tried for a while to break away from my corporate day to day to do something I love, computer repair/building/web sites etc. I still do it on the side (for chrome I tell the wife ... now it will be for GAS tho) but how do I compete with Dell? I can build a much higher quality machine than a Dell for around the same price, except I do not through a free printer or a gaggle of software you won't use 75% of anyway.

"Dude, I got a Dell."

"Yes, but dude .. you got a DELL?"

Tried to focus my niche for machine building on high end gamers ... my machines are great for that. Market is TOUGH - got big competition from Falcon Northwest and Alienware. Focused my networking and repair business on small businesses. Problem is that small businesses generally do not have a clue what they want, need or are even asking for and it gets very muddled and the effort vs return is just not effective. And designing web sites for people that have no concept of how complex a secure site with flash and java scripts all over it are ... ARGH!

"I want it to do this and this and this and I want things that pop out fo the screen and blink and take credit cards and have a way for me to easily put more items on line to sell." blah blah blah

"Sure, it will be about $5,000 to do all that. Plus you will want to set up a monthly update program because there are a lot of things that have to be checked and reset with what you want to do."

"Isn't there a way to do it cheaper?"

"Yeah, use eBay."

After over a year of trying, I took another corp VP job and have more free time, more money and less stress.<br><br>Post edited by: CRASH, at: 2005/04/12 11:11

Gram,

I remember sitting at the dinner table when we were told by &quot;the little guy&quot; about &quot;the big guys'&quot; attempt to control his pricing. I too was very impressed with his commitment to his employees and all of his other vendors that night.

I came away from the table with a lot more respect for this &quot;little guy&quot;, and also learned a little bit about the business. Good thing that I am not a business man, I just could not exist in such a cut-throat, dog-eat-dog environment.

These guys put not only their livelyhood on the line, but also have their employees and family members to consider too.

I whole-heartedly suggest that if at all possible, people look not only at the price of a product, but look at the service that comes with that product, and try to help the little guy out. After all, the big guy doesn't need that much help, and the little guy is generally who is creating the new products that we all want.

BTW, we need to hook up at Tom's again sometime.

They are the reason we have been able to attain such a high standard of living.
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Gram,
Economics and competition law is my field I am not a negative person by nature but the facts point me to have a dim view of the globalization years &quot;are here'.

Sadly as people buy cheap goods from places like Crap marts as an example who move into cities, seek concessions on taxes, don't contribute anything to the local economies, ie. no pension funds or benefits to employees, shun unions, kill off medium wage businesses and the manufacturing sector with cheap goods from China korea etc effectively eroding the tax base from current, medium size business closures who can&quot;t compete, the decent jobs will disappear, standard of living will drop.

No one seems to care because they can save a buck today , while for a dollar more they could be supporting their local economies by buying from mom &amp; pop down the street, sad ..

our only weapon is the decision on where we spend our dollars.

From the other end, I am a blue collar worker. I am a mechanic for a Tomato processing facility, “a cannery“. My job is one of the highest paying jobs in the area. In the past six or so years raises have come very slowly and benefits have been chopped. Our pension has been cut seven percent, we have lost sick days and we are paying for most of our health insurance. Not to mention the cut backs in mechanics. Meaning as people get tired of the cutbacks and quit, they are not replaced. My responsibilities have doubled in the last few years. Housing has gone up 165% in the last ten years because we are a bedroom community for the Bay Area (San Francisco). Anyway, What I was getting at is I would really like to support the Mom and Pop shops, but I cant afford to. As much as I hate to go into the W--Mart stores and
The K stores I have to save where I can.

Yep know what your saying, if everyone buys those cheaper canned tomato imports to save .50 cents on a can, what impact will that have on your job ?

Buying wisely is what consumers need to do, read labels where stuff is coming from and cheapest in theory should be a local supplier but not always. Its often doing a favor to some executive buying from a tomato plant paying .10cent per hour wages overseas.

Some things i am brand loyal, I will always pay whatever they ask for Heinz ketchup... there is no substitute product &gt;G<br><br>Post edited by: Motostar, at: 2006/02/27 21:05

LOL, Have you guys read the lable on our Road Stars! LOL