webdevfv - 3:48 pm on Jul 22, 2010 (gmt 0)

Well written argument but I'm afraid I totally disagree with your conclusion.

As a retailer, I now specifically do not sell products that the manufacturer sells themselves.

Never mind moving my cheese - that's a different thing altogether. I actually took a look at that a few days ago and surely - although it is about changing markets - it is about finding NEW and PROFITABLE ways of doing business. Not being AFRAID to look and go elsewhere when the need arises. As opposed to STAYING PUT with the same cheese and allowing situations that do not benefit either party to proliferate.

One supplier started undercutting my prices to the extent that their price was not far off the cost price I was paying them.

My business, having helped (in a small way) build up and support a brand was now being undermined. I couldn't sell for those prices as it was pointless and would result in a loss or break even situation.

I called them up - said that unless they raised their retail prices and/or lowered the cost price I paid them, then I would pull out. They said NO.

Result: I now sell a replacement product that has a decent profit and they now have less people buying their goods (at their lower prices = lose lose for them).