Home – New Forums Logistics Competitor demanding wholesalers not to sell to us!

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  • #979040
    Jazzah
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    Ok, we have a rather strong competitor in the next suburb. Apart from them having their mother appeal our planning permit to VCAT and costing us thousands, they are still at it! We recently contacted two suppliers to obtain costumes. One said they had an exclusive range which they could not sell as we were to close to another seller, but the second range we could sell. The second supplier was fine.

    Then a week later, after posting a picture of our store costumes on facebook, the first supplier rings to advise the competitor contacted them, saying we were next door and they would now not sell to us. I explained that they were 4kms away in another suburb and the range did not have exclusive rights. They just flat out said they would not change their mind! I then contact the second supplier, knowing there would be a call as well, and guess what, they had just had it! They agreed to continue to sell to us after looking up our address.

    I contacted the ACCC to see if this was anticompetative practice and they agreed it was, as it was two businesses trying to prevent someone trading. However they just log it and if it happens again, I need to let them know.

    Has anyone else had this? it is a small industry and it could make a big difference to us! what would you do? (Was considering glue in their locks but thought better :) )

    #1111551
    Chris – Marketing
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    I manufactured exclusive leather garments and carried a range of accessories. I never sold to any 2 outlets in a close proximity. I would have not sold to u a new comer. I would protect my loyal client. However if you had come to me offering a guarantee of extra $$$$ each month……well business is business. I would explain this to my loyal client.

    As Oriton (top end H/bangs, purses and wallets) was already supplying another outlet I had to source other top end suppliers. My choices were good – reflected by good sales.

    Extend ur research to other states and countries. A proven brand is easier to sell. But if u maintain good product, are in a good location, offer reliable service and reasonable pricing then I wouldn’t be concerned about your opposition. Once u establish your Business and obtain good market share u will be turning suppliers away.

    Chris Poulios
    http://www.satisfaction-marketing.com.au
    http://www.webthreads.com.au if u r looking for an online shop

    #1111552
    Klublok
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    Go talk to a lawyer who specialises in Australian Consumer Law. You will probably have to go to someone in the capital city and may cost you a bit.

    Having said that, in order for that behaviour to be against the Australian Consumer Law, the refusal must be reducing the competition in the market. This is contrasted with a supplier refusing to supply because the outlets are too close to one another. This may take a while as you have to go through the process. Then again a strongly worded letter from a reputable law firm might do the trick…

    Can you get the supply somewhere else in the world? One of my clients had this problem recently (where there is only one supplier in the world). However he found a distributor who is happy to supply to him from another part of the world. It cost a little more in freight, but at least he secured his supply.

    #1111553
    Divert To Mobile
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    I helped a friend in a similar situation, I managed to help him source a new supplier and he has remained loyal to them for the last 10 years – refusing to take salesmen fo the companies who refused him in the start. (poetic justice)

    I would guess there are other suppliers out there competing with the one who doesnt want to sell to you. I would suggest to find them and form a business relationship – dont waste your energy fighting to sell the same products as your competitor. Find a point of difference and make it your strength.

    Steve

    #1111554
    LucasArthur
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    Divert To Mobile, post: 124201 wrote:
    I helped a friend in a similar situation, I managed to help him source a new supplier and he has remained loyal to them for the last 10 years – refusing to take salesmen fo the companies who refused him in the start. (poetic justice)

    I would guess there are other suppliers out there competing with the one who doesnt want to sell to you. I would suggest to find them and form a business relationship – dont waste your energy fighting to sell the same products as your competitor. Find a point of difference and make it your strength.

    Steve

    Love Steves input.. he is right, no need to fight the supplier, find a similar one (must be some around the globe or locally) and create you P.O.D. (point of difference).. You;’ll love the feeling of ‘rejecting’ suppliers offers when the one who rejected you comes crawling.. LOL

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1111555
    victorng
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    Klublok, post: 124180 wrote:
    Having said that, in order for that behaviour to be against the Australian Consumer Law, the refusal must be reducing the competition in the market. This is contrasted with a supplier refusing to supply because the outlets are too close to one another.

    Klublok is right as usual. Generally, a supplier can choose who they supply to. But if they enter into an exclusive dealing arrangement then it may be unlawful but only if it results or is likely to result in a substantial lessening of competition in the relevant market. This is a complex, technical area of law. These sorts of disputes usually involve competing expert evidence from economists. In other words, probably more $$$ than it’s worth in your case.

    As others have said, try and find another supplier and move on.

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