Sally Supplier and Ricky Retailer are fictional characters charged with voicing the very real grievances expressed by private label manufacturers and private label retail executives, respectively. This month, it's Sally's turn. But don't worry, retailers, you'll have your say, too.
Fill us in on your supplier-related beefs by sending an e-mail to hofbauerr@bnpmedia.com. (All comments will be kept anonymous.) Ricky will speak for all of you in our June issue.
From: SallySupplier@VeryVersatileVendors.com
To: RickyRetailer@EnormouslyImportantStores.com
Cc: FellowPLSuppliers@Everywhere.com
Subject: Get out of your retail fantasyland
Dear Ricky:
I must say that your phone call this morning — requesting what amounts to the NINTH set of design changes to the label for your new sauces — really put me over the edge. We are small manufacturers just trying to keep our heads above water. While I respect your right to change your mind, why must you change it so often? Thanks to you, our design costs are going through the roof.
And that’s not the only beef I have with you and your company, Ricky. You’ve asked for six-month date coding on your sauces. Get real! We’d make the minimum batch and store it in our warehouse, but by the time you ordered the products and set your store shelves, most of the product would be out of code. That would be very bad news for us in terms of lost product and dumping fees. How about an 18-month shelf life — and the requirement that you purchase and take possession of each production batch?
And rumor has it, Ricky, that you folks plan on sourcing your new “Authentic Texan Marinade” in China. For heavens sake, why China??? To save a lousy couple of cents per bottle?
Shame on you. Why aren’t you buying those products right here at home? Not only are North American manufacturers better when it comes to quality consistency and speed to market, but they also extend credit and offer “product liability insurance” that protects you — the American retailer!
Ricky, many of the folks who work in North American processing plants are the same folks who shop in YOUR stores. Last time I checked, you didn’t have a single store in China! Retailers like you need to put American manufacturing workers back to work — so they actually will have the money to buy that Authentic Texan Marinade when it hits the shelves.
And one more thing, Ricky. Last year you mentioned a company directive to grow private label by 20 percent annually over the next five years. And now I see that your private brand is taking over everything from shelf space to displays and promotions.
Big mistake, IMHO. You might grow your private label, but you’re going to end up with overall category and dollar sales declines. Trust me.
Well, I guess that ends my stab at brutal honesty, Ricky. Can’t say that I really expect any miraculous transformation on your part, but gosh darn it, I sure feel much better!
Sally
