By Ed Avis
The costume shop world revolves around the relationships between vendors, retailers and consumers. When all three parties are getting what they want, the world spins smoothly. But sometimes things get wobbly.
Like when vendors start competing directly with retailers online.
That’s one conclusion from the survey NCA members completed in April. One question in the survey asked “What factors play into your decision to purchase a particular product?” Respondents could choose from four replies:
- Plays an Essential Role in My Decision
- Plays an Important Role
- Plays a Small Role
- Plays No Role.
Twenty-three NCA Buyer members completed the survey, and 16 of them (70 percent) chose “Plays an Essential Role in My Decision” when the factor was “Whether a Vendor Competes with Me Online.”
No other factor ranked as high. The two closest were “Discounts are Available for NCA Members” and “The Product Will Be Perceived as High Quality,” both of which had 14 responses in the “Essential Role” category.
It is interesting to note, however, that four respondents (17 percent) said that vendors competing against them online played “No Role” in their decisions. Zero respondents chose that response for the Discounts and Quality factors. So, evidently, some members don’t care about vendor competition.
The topic of vendors competing with stores came up again during the May 14 NCA panel discussion “What Buyer Members Want Vendor Members to Know.” Two panelists mentioned that they hate it when vendors try to force them to adhere to minimum advertised prices (MAP), but then don’t enforce those rules on big-box vendors….or worse yet, sell on their own site for below MAP.
“That is the worst thing that you can do,” one panelist said. “You’re hurting us. It’s already hurting us when you’re selling to people like Target and other stores at a lower price than you’re selling to us at. But then, when you’re suggesting the retail price be such and such, but on your own store, you’re selling it for less than that, that just hurts us.”
On the other side of the coin, praise was heaped on vendors who understand the struggles small retailers face, and especially those who are sensitive to the pricing situation. These days it’s understood that most vendors sell their own products online, but undercutting retail prices simply makes it difficult for retailers to compete.
Stay tuned: We will write about other aspects of this survey and panel discussion in future issues of NCA Today. And NCA Vendors, be on lookout for the biennial white paper about the Buyer/Vendor relationship (including your ranking in terms of how many NCA members are buying from you) in the coming weeks.
Also, you can watch the recording of the May 14 panel discussion “What Buyer Members Want Vendor Members to Know” by clicking here to log into the Member Portal. Then click on the Resources tab on the left, then click on the link "NCA Webinars" near the bottom of the list.