Stewart Woodruff says manufacturers shouldn't care whether retailers discount products or not...

In your blog you say suppliers are frustrated with retailers' discounting. Well, that is like the pot calling the kettle black.

For years we have been arguing with manufacturers and suppliers about internet sales and how they are devaluing the product and making the industry too price lead, and you say they are now complaining that retailers offer discounts to secure a sale.

Why would they be concerned? Their bottom line does not alter, regardless of who buys their products for whatever price. The only way manufacturers can regain product value is by introducing product that cannot be sold on the internet at silly margins and negotiate contracts with us hard pressed retailers who have invested in showrooms.

I was approached to put on a number of displays for a very favorable £2,000 of product worth over £6,000, very tempting. However I calculated that to get my £2,000 investment back without selling on the displays, at current Internet margins I would have to sell over £60,000 of appliances. They did not understand when I chose to decline.

Retailers use every skill they have learnt to tempt the customer to purchase goods. If that means an irresistible discount, don't blame us as we have overheads to cover. I have heard that recently a manufacturer cancelled a distributor's right to stock their product as they were allowing it to be sold to heavily-discounting internet companies. More power to them and may others follow suit.

Don't blame us, we are only trying to make a living. On the balance sheet it is not costing you anything so do the majority of you really care?
 
Stewart Woodruff, MBK Design Studio, Maidstone