It’s not as easy to figure out as it seems – there are issues on the retailers side and the vendors side with this. Respect is all that is required – and competition is a good thing.

Editor’s note: Since giving online discounters a plug in my blog is the last thing I want to do, I’ll pass on the request that I list them by name. Instead, I suggest re-reading the retailer comments above, confirming the practice is widespread and problematic, then contacting your accounts to ask their opinions.

Although I was also impressed by his comments in general, I have to dissagree with the above statement by John Breed, in particular if the wholesale distributor or manufacturer has adequate and growing distribution across their region or the country.

I am amazed at the number of wholesalers that will set up websites to brand their products, but fail to provide a Where to Shop… page to assist consumers. When an inquiry comes into the supplier, forward it on to an active retailer with a request that you’d like to be BCC’d on communications to this customer. Positive, Proactive, Professional behaviour is just common sense = Take care of the customer. If you’re a wholesaler, be a good wholesaler, and support your retailers. If you are a retailer, support and take care of your customers.

We have one gift supplier with an affiliate website, but we know that too often when an inquiry is sent, they will simply sell the product directly (full retail price to their credit). But this action is executed because it is EASY and QUICK. In the long haul it does little in keeping their retailers happy, profitable and growing.

It’s really apples and oranges. I don’t produce what Shutterfly sells, they do. And, actually, Shutterfly’s retail price for holiday card and stationery designs is more or equal to what most of my retail accounts charge for my line. As a side note, the paper weight and quality of printing is equal to what I sell wholesale- or I would not have done it.

My take is that the bigger my brand grows, the more people it touches in more places, the better it is for all concerned.

I’d love to hear if/why this is objectionable.

I’m realistic enough to know that it’s past the point of no return when it comes to vendors competing against me online. I just drop those lines and focus on the exciting young companies who offer fresh options and prefer not to sell against me online.

The companies who sell their designs to cheapster sites like Tiny Prints and Shutterfly are another issue. Those companies are selling their retail accounts down the river by providing designs under their brand name (the same brand name on my shelves!) at prices lower than what they offer us. How in the world is that justifiable?

I just read the well thought out comments by Mr. Breed and commend him for stepping up publicly to share his thoughts. Even if we disagree on a couple of points, I respect him for stating them openly.

Editor’s note: As do I, Anna…as do I.

Noteworthy Collections has tried to make sure we stay focused on a couple of core principals. First, we seek to serve our clients which in our mind is the retailer of stationery and gift products. Second, we seek to design the type of items we like and that would be marketable to our clients. And our third big focus is to make sure we process our clients orders as efficiently and accurately as possible. We are neither the most expensive nor the cheapest, but 15+ years later we still stand here to see the industry continue to evolve and I hope like heck that the traditional brick and mortar store doesn’t just survive but thrive!

I do not distinguish between the retail website and the retail store…we can all debate if that makes sense or offends anyone. Many years ago we chose not to limit the number or locations of our dealers and shortly after that we decided doing business with web retailers was perfectly fine as long as the guidelines (rules) for pricing and order processing were consistent. My viewpoint on that has not changed, we are in business to support and delight the stationery and gift retailer …period.
We obviously worry that our client base could decreases in size and that many of our best clients have turned more and more to designing their own products but honestly we accept that competition can come from many angles. And in some circumstances our clients may also be our competitor. Technology or the progression of technology will continue to drive our industry which is the main reason we chose to purchase our own digital press. I still believe that if we stick to our core principals and keep moving forward to offer creative products beyond our core invitation, photo card and custom print album business to new items like collegiate licensed stationery, stamps and notepads….we will still be around another 15+ years!

As far manufacturers having retail sites, I believe that a manufacturer should not be punished for having a retail site as long as the pricing and policies are constant with the policies they enforce with their retailers. We have not ventured down that road as of yet and frankly I am well aware that we are good at servicing a retailer but we are not staffed or organized to to accept orders from an “end-user” or retail client. The ability to serve a retail business owner and a retail client in my mind are two very different skill sets. Heck, we struggle when one of my friends wants Noteworthy Collections to print 20 birthday party invites for them! We have no showroom or the time to stop and work with a friend on the proper wording for their invite! I often think we lose money in those situations…retailers we are not.

Okay lastly, to go back to an old debate on this blog…nor do I think manufacturers should be punished if they chose not showcase their wares at certain trade shows. We have run a booth at the NSS more than 12 times and this year we just did not feel it was the best use of our marketing dollars. If the numbers prove me wrong than I am sure we will come back to the show but I really need quantitative data it is a must that a manufacturer attend the show. An unpopular view maybe, but I have mostly certainly have enjoyed the conversation on this and other blogs about the NSS.

I enjoy the conversation and look forward to the this debate continuing to evolve and as well as the numerous other issues that impact all of our small businesses. Thanks for giving me a forum to speak my mind as well!

John Breed
Partner and Manager
Noteworthy Collections Inc.

Editor’s note: Anon did respond, unwilling to sign his/her name to the harsh criticism submitted yesterday. Both posts will remain unposted as a result.

The issue is that, whether you’re discounting or not, manufacturers selling online take customers away from retailers, in most cases. If you’re in Montana with no retailers, by all means, everyone understands you need and should make that sale. But if you’re also going to sell to the guy living a block away from my shop, and I carry your product, throw me a bone for investing in your line and give me a commission. Otherwise, send me your products on consignment, because you’re simply undercutting me just by being there – taking your cake and eating it too, so to speak.

Discounting only adds insult to injury – actually making an effort to undercut your retailer.

Your question of Cinda doesn’t make sense – apples to oranges. Cinda doesn’t sell a product, she sells a service, and she doesn’t have a retail location. She’s not taking any of my business away – in fact, she’s helped an enormous amount of retailers get business through the 3/50 Project.

If you want me to post the lengthy essay you sent railing both on me and on retailers, you’re going to have to sign your name -and- your company name to it. Otherwise, sorry-—it stays off the site, per the Rules of the Road (click on the About tab at the top of the page).

Cinda