How important is ...
01-28-2005, 07:25 AM
#1
50 Watt CAFz'r
Thread Starter
Join Date: Dec 2003
Posts: 429
... exclusivity of a product line to your retail store? Do you regard exclusivity as an important factor in determining the lines you carry in your store? Do you feel exclusivity is directly related to profitability?
Please share your thoughts.
Please share your thoughts.
01-28-2005, 08:42 AM
#3
Guest
Posts: n/a
It's nice to have. But more important than whether the shop down the street has it, is whether it's available for cost all over the internet in large quantities. That tells me whether the manufacturer is serious about service to the retailer. Some lines it's nice to have no matter if another shop carries it, for example entry level audio, and security and remote starts.
01-28-2005, 09:18 AM
#4
50 Watt CAFz'r
Join Date: Apr 2003
Posts: 150
My thought is it should never be about the product. Lots of good product out there. Its not the product that makes your store different from the rest.
If anything having a product in multiple stores increases brand awareness
If anything having a product in multiple stores increases brand awareness
01-28-2005, 09:24 AM
#5
2000 Watt CAFz'r
Join Date: May 2000
Posts: 2,406
It's nice, but like Dereck said, if the margin is controled by all the retailers then it's ok to have something someone else has, exclusive lines can be a problem too if people don't know it, not everyone will just buy on the quality, they still want name brand (kids)...........................profit is what you make of it...............if you offer a better package (service/product) you'll maintain margin.........................most people will pay more for better service......................I know I will.................
01-28-2005, 02:49 PM
#6
I agree with Dave, it is very important. No offence to the distributor guys, but your goal is to get it to the retailers and the more boxes you move the more $ you make. If I have to start sharing my $ with the guy across the street and watch margins fall (which inevitably they do), it is time for a new line.
01-28-2005, 03:20 PM
#7
2000 Watt CAFz'r
Join Date: May 2000
Posts: 2,406
To add to this, it's very important to deal with reps who are reputable and have ethics................there are to many reps that always seem to get to involved in the whole gossip scene...................these people know many things about a persons business and they should remain neutral and not get involved or even start the rumor mill........................
01-28-2005, 09:46 PM
#8
It is nice to have an exclusive line.....you can maintain high margins....
The problem is...if no one knows the line, or it is not popular, you will only sell a small amount of it.....
Sometimes it is better to sell a ton of gear at 35 points instead of a few pieces at 50 points...
If a customer comes to your store to buy brand A and you offer him brand B...You may switch 20 or 25 % of them to brand B.....the other 75% will leave your store and buy brand A from your competitor..
The best option is to have brand A and B in your store......sell brand B when you can and take the other guys out of the market with brand A...
I have seen a few dealers remain small because they continue to believe that exclusativity is the answer to their question....A mix of A brand and B brand is the way to go.....
[ January 28, 2005, 11:51 PM: Message edited by: loudtdi ]
The problem is...if no one knows the line, or it is not popular, you will only sell a small amount of it.....
Sometimes it is better to sell a ton of gear at 35 points instead of a few pieces at 50 points...
If a customer comes to your store to buy brand A and you offer him brand B...You may switch 20 or 25 % of them to brand B.....the other 75% will leave your store and buy brand A from your competitor..
The best option is to have brand A and B in your store......sell brand B when you can and take the other guys out of the market with brand A...
I have seen a few dealers remain small because they continue to believe that exclusativity is the answer to their question....A mix of A brand and B brand is the way to go.....
[ January 28, 2005, 11:51 PM: Message edited by: loudtdi ]
01-29-2005, 03:29 AM
#9
500 Watt CAFz'r
Join Date: Dec 2000
Posts: 952
On that note, when in a process of a potential sale, there's always going to be the objection of brand "X" etc.., and if you don't have the brand, typically it's knocked, (mainly because of lack of knowledge of the competition), once you start carrying a new line, after having dropped A or B and replaced it with brand X, which was knocked, even a loyal customer would have questions about the change, and previous purchase.
Exclusivity does have many advantages, and it's also part of the store's integrity to stick with it, but.., reality has it that world domination is sought by every manufacturer out there. And considering the vast number of name brands, it's a wonder everyone's fighting for a piece of a pie with such selection available. [img]graemlins/headbang.gif[/img]
I understand that it's tough for a distributor to stick to a territorial situation, and the occasional tougher hard times that come to a store, but that's the risk both wholesalers and retailers took when they started their venture.
High margins can not only ensure the store's longevity, but customer perception of quality and status as well. And isn't that when brand awareness comes into the scenario?
Even some of you "distributor guys" started out in Sales, and found out the harsh reality of stiff competition due to lack of exclusivity.
Brand awareness comes through hard work of advertising and loyal customer satistfaction mainly.
Exclusivity does have many advantages, and it's also part of the store's integrity to stick with it, but.., reality has it that world domination is sought by every manufacturer out there. And considering the vast number of name brands, it's a wonder everyone's fighting for a piece of a pie with such selection available. [img]graemlins/headbang.gif[/img]
I understand that it's tough for a distributor to stick to a territorial situation, and the occasional tougher hard times that come to a store, but that's the risk both wholesalers and retailers took when they started their venture.
High margins can not only ensure the store's longevity, but customer perception of quality and status as well. And isn't that when brand awareness comes into the scenario?
Even some of you "distributor guys" started out in Sales, and found out the harsh reality of stiff competition due to lack of exclusivity.
Brand awareness comes through hard work of advertising and loyal customer satistfaction mainly.
01-29-2005, 08:44 AM
#10
Guest
Posts: n/a
we sell concept car audio, exclusive b brand gear, we sold 120000 cost of it in the first year we had it, most at 50 points or more and it was a product that nobody had ever heard of. thats a sh!tload of gear, if you cant sell your exclusives and use the excuse that people wont buy it because its not mainstream or well recognized, you might as well just sell rockford, or mtx, or kicker or whatever and let yourself get the crap kicker out of you.
