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Old 8th January 2010, 10:39 PM
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rich rich is offline
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Join Date: Nov 2008
Location: Shebbear, N Devon
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Quote i cant see how JSB looses out supplying both AA and Airammo

If you are a manufacturer who sells via the retail trade then you compete for shelf space with other manufacturers. The retailer will stock - and push - your product rather than a competitor's if firstly there is a big enough demand for yours, and secondly if he can make enough margin out of it.

As the manufacturer, it is you who creates the demand, through advertising and PR etc. It's part of marketing. Usually you also supply any point of sale and promotional material, at your cost.

When a firm like Air Arms or Daystate for example get the manufacturer to badge part of his production as their own label, then they commit funds to do the promotion and advertising. If it becomes common knowledge that the identical (or nearly so) product is being retailed through a direct marketing arm, leaving you no return on your marketing investment and upsetting the dealers who were - and might not in future - stock your product, then something will have to give.

As I tried to show earlier, while the side sales are small, it's as a dungfly biting a bullock. When those sales become really significant in volume, then a swish of the tail is not enough.

With due respect to JSB, they have IMHO not followed the classic business model for retailing, in fact for any sales, where the first rule is, don't try to compete with your customers.

Disclaimer: dungfly and bullock are not metaphors for any particular companies or organisations, please note.
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