Jan,
Perhaps that is true but I'm told they can make life very difficult. Earlier this year a retailer was telling me with some bitterness that they felt forced to drop your favourite manufacturer. The 'new rules' meant that they would be obliged to drop competing brands, carry vastly unrealistic stock levels, and devote a totally disproportional amount of their total display space to the company. There were a bunch of other minor conditions that sounded just ridiculous to me.
As far as I know there is no other seller of that brand within 50 miles. Who wins?
David
The first lesson I've learned in this job is: Be Independent.
For me, from this side, it's impossible to judge on the situation you are mentioning here, but I can shed some light on how things go and you can figure out for yourself how things could have gone.
All the three alfa brands have a three level retailer. Let's call it A, B and C or authorised dealer and authorised Center etc.
So a small shop that sells about 10.000,00 euro on a yearly base from a brand is A. He/she is not mentioned on a dealers list, does not have the benefit of free advertisement, does not get a bonus rated on his/hers total yearly sales etc. He/she does not have to have several models of that brand in the shop.
When a shop wants to be on the official dealer list of the brand, that brand wants in return the retailers committment to have several models in stock so the customer can actual see what that brand is about. So the retailer has to invest. There is NO sale on commission. The retailer pays the same price as the A, B and C dealer. This is where Nikon differences from the rest. In return he/she gets educational support, regular visit from the brands representative etc.
The toplevel retailer gets the most benefits. The bonus, visits to the plants, first knowledge of model changes, 2% of its yearly turnover for marketing matters, four times a year a total makeover of the brand POS material, displays, cut through models, first delivery, you call it, the brand makes it happen.
In return, the retailer has the most (we always have all) models in stock.
Every retailer gets a map from the brand explaining all this. So there is no hidden trick or secret. Everybody begins at the bottom and can work his way up.
One thing they are all very strict on is price integrity. So if a top dealer flushes the prices through the toilet he could loose his/hers bonus. In camera land, the end year bonus is where they often float on. That's a totally different ballgame in hunting and outdoors sale channel.
I can't imagine that a brand does not wants to be representated by a retailer. Unless that retailer damages the interest of that brand or other dealers of that brand. And than still, he/she can make live of that brand difficult if they don't deliver any more.
We are allways very open to our customers about brand rules.
One thing I have never experienced is that a brand demands dropping off compatetive brands. If they would, they were the first to go.
Jan