Re: Very Important Competition Questions

[jck2003]

Hi,

I am at this very moment planning a large toys and collectables distribution business. I hope to target small independant stores but I know the money is in the chain stores because of bulk orders.

My distribution business will be unique and there will no compeitor in the market to match what makes me different from the rest. I know it will be a popular selling point.

Anyway, I know some of the wholesalers that are supplying some chains in my home country and I would just like to ask for your suggestions in regard to trying to take these contracts.

-I will be cheaper than these wholesalers (I hope this will stand out for retailers and chains)
-I will provide a unique service different to all as I will offer an advice forum for them where they can get loads of information on prodcuts aswell as how much they should retail them at etc. (My main selling poitn aswell as prices as above)

The distribution company (my competitior), that is selling to the chains is located in a different country. Therefore I will also offer them better delivery times.

I have contacts in the chains also. So, if I offer this and stand out can the chain choose to switch to me or more than likely will they have a contract with my competitor? Does anyone know this standard procedre?

Any help is appreciated in relation to this. Thanks in advance.

[Karen]

If they already have a contract with the chain then they are obligated to use them.

Karen

[Xanifur]

If they already have a contract with the chain then they are obligated to use them.

Karen

That doesn't mean they can't have multiple channels for product, does it?
I haven't heard anything about contracts between supplier and store. To my knowledge, you can cut off relations to a supplier at any time, though I could be wrong.

New stores may also be interested.

[jck2003]

Yes, new stores would be main target but if I could take their exsisting suppliers that would be preferable. If you were a chain and I offered such a service as above which is superior than my comptetitors and also based in the same country would you be tempted by such a deal if not contract bound?

Also, in a strategy to take this business if not contract bound would setting up a meeting with the chain stores purchasing Department be the best start to do so?

Thanks very much guys. Any more help is appreciate also.

[jck2003]

Any other advice guys? Really appreciated as allways

[Paint and Air Sportz]

Having a forum is in no way a unigue service, and i doubt buyers at these large chains have time to read forums.

[jck2003]

Thanks for you contribution. Generally I will have this mostly for small retailers but there will be info on main website also just to help the retailers/chains to be able to run instore promotions etc. as it will increase sales. Therefore it will be highly unique in my target market as there is nobody there that offers such a service.

I have contacts in the chains also. So, if I offer this and stand out can the chain choose to switch to me or more than likely will they have a contract with my competitor? Does anyone know this standard procedure?

I will have great product, website, delivery times and more so I know my service will be superior. Anybody know about previous questions?