Friday, January 06, 2006

Sometimes, it’s best to fire a customer

So many manufacturers are willing to cut their own throats — or at least those of their employees — to get into Wal-Mart. Once in a while, you find an executive with the vision and nards to get out.
“Now, at the price I’m selling to you today, I’m not making any money on it. And if we do what you want next year, I’ll lose money... we have this independent-dealer channel. And 80% of our business is over here with them. And I can’t put them at a competitive disadvantage. If I do that, I lose everything. So this just isn’t a compatible fit.”

I wonder why it’s so hard to shut off a sales channel, even knowing that those sales are losing money and possibly costing you in other ways.

1 comment:

  1. Ah, the unfair business practices of Wal-Mart. The illegal business practices I must also say. They contribute nothing to the free market, and this is coming from a recent convert to libertarianism, well actually I would say I a more of a combination of the Green Party and the Libertarian Party. You see, big business is just as much a problem as big government. Anyway, it has been awhile since I have been to your blog. I haven't been blogging much, as I was on some forums and stuff. One interesting one is http://www.debatepolitics.com, worth a look. Well, peace be with you.

    ReplyDelete

Comments are welcome, and they don't have to be complimentary. I delete spam on sight, but that's pretty much it for moderation. Long off-topic rants or unconstructive flamage are also candidates for deletion but I haven’t seen any of that so far.

I have comment moderation on for posts over a week old, but that’s so I’ll see them.

Include your Twitter handle if you want a shout-out.

LinkWithin

Related Posts Plugin for WordPress, Blogger...