Also from W. Frank Dell II, CMC...
Dellmart & Company
Dellmart Perspective: Pricing Private Label
(PDF)
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August 16, 2010
FROM RETAILWIRE:
There are complaints about things retailers do, but shouldn't. For example, during demo or promotion times the buyers don't purchase enough product to support the effort. In your experience, which issue cited in the article is the biggest headache for vendors?
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When a buyer (category manager) will not do something, there is a reason for it. They don't believe the sellers pitch. They don't understand the program. They don't care due to another decision they made. Most importantly, the program does not support how the buyer is evaluated. Over the years I have seen many pitches that were rejected due to not being in the buyer's personal best interest.
I have preached quit trying to sell the wrong deal. Unless the seller understands how the buyer is reviewed and compensated they are just throwing it against the wall. For example damage & unsalables are a profit center, plain and simple. The buyer does not care as it is not linked to their performance, so playing this card is useless. On the seller side unless the purchase makes profit sense, don't do the deal. This is a hard one to accept, but simply moving unprofitable or less profitable cases is rarely the answer.