Diary of a Demented Store Owner

Sunday, 13 July 2008

Some Insight From Mikey Into Why We May Be Failing You Our Customer

(for some background on this see the comments posted by Gary and Mike in the blog posting below this one dated July 11)

I agonized over whether this exchange should be posted to the comments section, or whether it was important enough to post as a main entry.

You see, I recognize that the system of how goods get to you should be transparent to you- you want stuff, we go out and do our best to get it for you. Simple as that. You don’t need or want to know the details.

I also recognize that this ‘Diary of a Demented Store Owner’ has a purpose- that it exists for your amusement and occasional education. ‘Mikey’s Rants’ are not always amusing (ok, maybe sometimes, perhaps a little bit?) and while these aren’t educational in a traditional glass sense, they do give you an insight into the workings of an industry and how it affects all of us. One where there has been a steady, increasing supply problem that has become troubling- one that you the customer are getting less and less understanding and patient about.

So, indulge me for a bit. Read this exchange between Gary Brown and me, comment on it or just ignore it.

More funny stuff is sure to follow, I promise, just not today.

On 13-Jul-08, at 11:43 AM, Gary Brown wrote:

Hi Mike(y):
Short note as I'm still
making space for the girly car (at 14.3 km/L you can call it anything you want!) in the garage. Cleaning out 30+ years of p'tak takes time, eh?

Mikey wrote;
Is there no rest for the wicked? Must you persist in these thought provoking emails, causing me to think pensively and insightfully ...

Gary Brown:
Thanks for writing. One of the Personal Tasks I've assigned myself is doing some gap-mending between dealers, distributors, and manufacturers. That's one of the reasons I've been spending time with Jim out at Bullseye. I've also had some great notes back-and-forth with Lani on a number of things. And, seriously, the ten year plan IS to move to Portland. Though, of course, with my luck one or more of the volcanoes would erupt as soon as I got there. Then again, as a defrocked geologist, that would be kind of neat. But I digress...

How many glass places are there over there, at least of any consequence? Are they geographically close, or is it quite some distance from one to the other? One possible solution might be the creation of some sort of buyer's co-operative. This would be a central repository that would be a delivery point for group purchasing. The group purchase would, theoretically, get the discount power of a large buyer (like you), without the hassle of the distributorship. The members could draw down on the central place's supplies, and then do a bulk re-purchase. Of course, this would taken some careful analysis to figure out what gets bought so the co-op isn't left holding onto a bunch of unsellable goods.

Mikey:
Ah, the co-op idea- such a good one in concept (like communism and silicone breast implants) but me thinks, probably unattainable in practice. We did our own quasi-co-op a few years ago when I opened a second store about 70 miles away from us in Barrie (a small city/suburban community to Toronto). It was set up as a franchise, with my purpose to use the second store to strengthen our name, increase our buying power, and market share (and thereby) increase advertising, you know- all the strengths that two stores in lockstep would offer.
The experiment was a tremendous success- our volume buying garnered us better discounts from our Canadian suppliers (we used to have more than one), and gave us a higher profile throughout the States and Canada. Heck, Spectrum put us on the front cover of their Score Magazine, Bullseye amongst others called us to become a dealer, and we even conned the glass press by issuing our own press releases on stuff like SwissCheesed Glass, and a subsequent "Important Recall' notice. Yes, that's right- magazines like Glass Art published our note as fact, on how to order a retrofit kit to service a glass recall which included zircon-encrusted tweezers (my ode to one of my heroes- figure it out, I don't want this to be too easy for you). Mothers started naming their newborns Mikey, anthropologists uncovered rare Australopithecine bones and named them toyoFIGus, that's right- check the Smithsonian archives under FIG- Friends of All Old Bones ... So, yes, I see the benefits and would have loved to have been even more involved in such a thing. We made overtures to others as well, to no avail- everyone in our industry was happy, and dangerously complacent.

With or without FIG, could it happen today? I don't know. Those who used to be comfortable and complacent never had or made the time for their competitors, reinforcing this dog-eat-dog paranoiac mentality- they didn't see the writing on the wall. As we grew, and our options widened (we consciously chose to support both wholesale suppliers even when it was to a cost disadvantage because we wanted to assure a healthy competition) others didn't take such a forward thinking view. I remember making approaches to others in the industry- some direct competitors, some not, to see about pooling our resources without success. Today, with our supply chain in the shitter, all of a sudden, now people are approaching me to get together. Of course, this time it's not as an equal, but a little more self-serving- as a case where they want to take advantage of our 25 years working alone, developing our own contacts, negotiating better pricing, finding our own great freight forwarders, fighting with customs brokers for favourable rates, having the great sales staff at Bullseye understand our wants and dislikes (Lani finally understands our fondness for single malt scotch).

Gary:
What's puzzling to me is the wholesaler’s lack of goods-on-hand. Is he (
nasty word edited) or something? Most businesses would be pleased as punch to sell you 1000 sq foot of glass when you ordered 1000 sq foot of glass instead of only 50 sq foot. You really can't make money NOT selling something. I don't know... maybe things are different up in Canada. What excuse does he give you...if any...or does he just say "suck it up and be happy with what you get"?

Mikey:
Now you've really struck a nerve! Let me give you a bit of insight into our one and only Canadian stained glass supplier (OOCSGS) here:

I have yet to have any contact from the owner of our OOCSGS. None! Staff are left in the firing line, and streams of propaganda continue to arrive by way of monthly newsletters; you know the usual- we're great, inventory control will be better, pricing will be lower, don’t worry because now we’re a monopoly, yadda yadda. I think they could have won over customers (even me) if they were a little more honest and forthcoming- admitted that they ‘effed’ up, were sorry, and will try to do better. I actually laugh out loud every month, waiting with anticipation for what new marketing gem they'll pass on to us to help us improve our business- it's like Nero fiddling as Rome burns around him.

I have had the occasional dealing with their general manager (now gone- apparently retired according to the June OOCSGS newsletter [which came in July]- announced with a gracious two sentence comment), and what kind of dealings? Here are a few:

1) I have ordered inventory, only to receive part- finding the rest still on their shelves- "oh, we don't want you to take it all' I'm told. Perhaps ordering more was an option they never considered? That was one conversation.

2) To rectify a persistent stock shortage on a particular item, I offered to commit to a sizable quantity giving them the opportunity to plan ahead- that's right, still didn't get my inventory as agreed.

3) Got a call from the GM- 'I want you to change your blog entry on the Taurus 3 bandsaw'- it  seems he didn't like me using the saw to point out the incredible price discrepancy between the free market we find in your great country compared to ours (yes, I can buy a saw for retail in the U.S. for about a hundred bucks cheaper than I can from OOCSGS at wholesale- go to our on-line catalog- I even tell people they should save some money and buy it in the States- we couldn't buy it here and sell it at a fair markup anyway so why bother). He felt he had the right to edit us! Then he asked if I minded if he hired one of my recently departed staff. I reminded him, the decision on how he chose to run his business was his alone and I would never try to interfere, as it was mine to run mine (the posting stayed).

4) We have a quirky kind of electrical standards thing here in Ontario. So if you want to sell a saw legally here, the only source for such a saw is our OOCSGS. We were accused of selling non-approved saws (I guess they couldn't count how many we bought from them). So, what happened? Maybe they should call me and have a polite (or not) chat? Maybe see what could be done to encourage me to buy more inventory from them rather than elsewhere? How about working with one of their (once?) largest retail customers? Nope. Got a registered Cease and Desist letter. Yup, I can't make these things up Gary Brown.

And that's the kind of situation we have today here in Canada.

Gary:
"zircon encrusted tweezers" *snort* If you keep that up, I'll be going to Montana soon... I still remember watching Zappa conduct his band. Someone screwed up and they stopped on half of a dime. He gave 'em the downbeat and they picked it right up. I was in awe of their vibraphone player.

I take it the current condition is probably like the one here in The Cities. One major supplier for the grownups and then a dozen or so places that have a handful of glass and supplies. The small places are dropping out one by one. I think, besides the supply issue, the hobby side of glass just isn't in a growth phase right now.

Geez... sounds like OOCSGS is working on a formula for going out of business. If not now, not too terribly far in the future. I had to chuckle over that whole bit with CSA approval on the saw. You NEVER burn a bridge with someone you are dealing with. The cosmic wheel turns and it'll come back and bite you in the buns, sure as shooting. I have been around in my little niche long enough to see folks that pooped on me get their comeuppance. Since it sounds like you have to deal with these bozos I'd just show up on their doorstep and have a "come to Jesus" meeting (as my late Dad used to say) with the current management. Now, the interesting fly in the proverbial ointment would be if the wholesaler was jumping over you are retailing directly to folks that would normally buy from you.

Ain't small-medium size business grand?

OK. Back down to the garage to continue mucking things out. Scary things are coming to the surface. Things like a 1973 picture of me in an argyle sweater with a big bow tie. The clothing you put on to please girlfriends. Sad.
Yours Truly,
Gary

Mikey:
Gary, you give me way too much material…
Maybe if you stayed in the garage, I could get some real work done, rather than ruminate over your emails!
Love,
Mikey



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