Customer Quote by Greg Thain
““retailers can sometimes focus on their competition so much that they are often less astute when buying (i.e. their competitive effort is directed horizontally rather than vertically). In these circumstances it is not unusual for a manufacturer to find that it is possible to raise the list price offered to all retailers without being criticised. The retailers are focusing on the discount from the given list price, as the list price is known to be common to all retailers. Thus, the objective for retailers in the negotiations is to win greater discounts, bonuses, promotions support, delays of payment and so on than other retailers, but not primarily to compete for profit with the manufacturer.””
About This Quote
Source Speech: Retail Negotiation Strategy, 2022
Retailers focus on discounts, allowing manufacturers to raise list prices without criticism.
In simple terms: Retailers' discount focus lets manufacturers increase prices.
Key Takeaway
Consider broader pricing strategies beyond discounts.
Themes
pricing
competition
strategy
Mood
analytical
strategic
Type
business
economic
When to use this quote
- manufacturer pricing
- retailer negotiations
- product launch
- profit margins
Key Concepts
vertical integration
market dynamics
Questions to Reflect On
- How can manufacturers balance price increases with retailer relationships?
- What alternative incentives can replace discounts?
A Different Perspective
Retailers may still demand deeper discounts, limiting price hikes.
