Competing with Suppliers on Google

[bekyed]

Help.

We have a real problem here, our suppliers are competing with us retailing the same products, they are at no1, we are at no4 on Google. We get around 10,000 visitors per month and average 2 sales a day. The problem we have is they are the cheapest we can find for the same products.
Does anyone have any ideas how we can make more sales as they are obviously taking the lions share, or is anyone else experiencing the same situation.

Thanks.
Wayne.

[OldWelshGuy]

It is a bad situation when your suppliers are competing with you. I was involved with a wholesaler who went down this road, and I warned them against it. WHY? Because their customers will find alternative suppliers and they could well lose out their core business.

There is no easy answer really, it is almost impossible to compete against a manufacturer/main supplier, especially if they are undercutting you. The answer is change supliers.

[Jason L]

Agree with OldWelshGuy. I think it's unethical for a supplier to retail too. I always vote with my feet and just don't use them anymore. They need to decide which business they are in. First thing would be to question them about it and see what their reponse is? But as your sales volumes are so small I doubt you'll be able to influence them much I'm afraid.

[edmondscommerce]

I would just walk away from this. They are simply going to make more money out of this for the same retail price than you. That means more profit to spend on SEO etc.

Leave it alone and find something else to sell.

The vast majority of wholesalers will stick to what they know and only do large volume sales to retailers and leave dealing with joe public to them. That means you shouldn't find it too hard to find something else you can sell, make money and rank well on.

[AndyP]

Absolutely. They are either suppliers/wholesalers or they are retailers, they cannot really be both. I would send a shot across their bows to express your dissatisfaction and to see if they can resolve the issue by lowering your prices so that you can compete on a level playing field or vote with your feet and leave them to it.

Good luck!

[Jason L]

The vast majority of wholesalers will stick to what they know and only do large volume sales to retailers and leave dealing with joe public to them.

Yep, this has been my experience too. Most wholesalers stick to their core business. I think it's a bit desperate/greedy when they try and do both...and in the longer term it will lose them customers, whether it's you or other retailers.

[Page]

Absolutely. They are either suppliers/wholesalers or they are retailers, they cannot really be both. I would send a shot across their bows to express your dissatisfaction and to see if they can resolve the issue by lowering your prices so that you can compete on a level playing field or vote with your feet and leave them to it.

Good luck!

They can and if they can make the business work then fine - there are no fixed rules.

If customers walk away they may change their business model or they may find they do not need to thank-you very much. There is no moral imperative to not sell direct only a business one. Just as there is no reason you have to buy from them - only if there is something in it for you - and them.

[saxondale]

if you read it properly the O/P says HIS suppliers are .................. could be he`s just buying off another seller.

post #4 about sums up all the options

[Alonicus]

In my field, it's quite normal for wholesalers/importers to also have a retail arm. But there's a kind of unwritten genetleman's agreement that they'll stick close to RRP-type prices. That way, they don't harm the genuine retailers who give them the volume of sales which makes it worth importing/manufacturing the goods, but still pick up a few retal sales at a very healthy profit margin. I'm lucky - I sell in a relatively "friendly" field, where competing retailers still talk civilly and help each other out on occasion.

In your situation, OP, I'd certainly investigate alternative suppliers. Or, if you are sure the market is there, and you have the capital available, have you considered manufacturing yourself or importing frm the manufacturers directly ? I assume the goods are imported - let's face it, most things are made in China these days, and there's precious little manufacturing going on in England any more ! If none of these options are viable, then as #4 says, it may be time to move into other fields.

Other options are maybe to talk to your supplier and negotiate discounts that enable you to match their prices, even if at lower margins, or persuade them that their actions are damaging their retailers. You could also consider alternative marketing strategies that don't put you head-to-head with them in Google, things like social marketing, searching out online interest groups etc.

[FLAUK]

How much cheaper? Would it kill your margins to match their prices?

If you can't beat them on price then try to beat them on service and search engine results.

[SillyJokes]

Wayne, we had this problem and we walked away from that supplier and went to others. It's the only way. You can never compete on price as they will simply beat yours everytime you go lower as they will be buying at distributor rates.

[marandukltd]

I suppose it' a dog eat dog world out there but sometimes you just wish that people would be fair, suppliers who know that they are competing with their customers are being very unethical. We supply 100's of dealers throughout the UK and could easily go straight to the marketplace and put many of our current customers out of business but that's not good business.

[UKSBD]

A lot depends on the product and branding.
If the product is so well known that it is searched by product name/brand
you can understand why they might want to sell direct.

[kldguitar]

My friends. I understand your situation all, Because we are tube guitar amp manfcturer in china, so let me tell my idea from manufacture position
1. in fact , if we add cost of shipment , storing stock , explanation to customers , It is not good things that manufacturer retail self . It is waste us many time and money. It is doulbe -lost business for manufacturer and their dealers.
2. why your supplier retailer slef? You are dealer , I think you need ask yourself what works you do for tradetion? Do you have better website than your supplier? Your website more special ? Do you have more truth than your supplier? Do you know market than your supplier? If you only sell product simple.
3. Being manufacturer in china We like people OEM from us , especially they have new designs, new ideas. If customer have no ideas except chnage logo, It is difficult to us also. Now it is internet world, each products will meet in internet. Many people can OEM same products . If products had same face only with different logo,? it would been competitive between our customers.in fact it means we competitive with ourself.
So I suggest you, (certainly I don't know what things you sell)The suggestion that ask you change supplier is bad. You need other work not escape
1. Sell many different things not only one. 2. making your out look self, not use supplier outlook. I think you know your local culture,You can design better out local
3, Buy many amount, so you can reduce the cost of shipment, and ask your supplier only sell it to you. But it need you have money.

[quikshop]

We had a similar problem that we eventually overcame by going direct to the manufacturer and having an almost identical product re-branded for us.

Unethical and potentially fraught with legal dangers maybe, but it was a reaction to how they did business - they had only set up their retail website after we had proven the concept in the market by selling so many.

We had taken the risks, they wanted to cash in on our success :rolleyes:

[Kathleen Rigg]

I don't know your market, but maybe you could explore other keyword phrases to optimise your website for. This way you can avoid clashing with your supplier........

[cycloneuk]

This is very common in the perfume/cosmetic industry and very annoying. My main supplier concentrates on being just a supplier but some of the smaller ones i use, all have websites that compete with their customers.