I think James is missing some of my point.
Back to the Big Mac………………yes, they’re pretty much the same price everywhere you go but if you look at the revenues of two restuarants within a mile of each other, their results can be vastly different. So does that mean the one with the higher sales should start limiting their sales because the Corporate franchise wants to even the playing field and penalizes the better business with fewer patties next month? I brought up this comparison for the mentioning of what Harley Davidson is doing. It doesn’t apply as well to the St. Croix issue.
I had this whole bigger thing written up but took the time to realize what James and Jeremy were saying. I can see those points, made by the Croix rep. Eventually rendering yourself to the vulnerability of low competition and retailer leverage is a scary thought. It works by today’s standards……………but I often get stuck in thinking about tomorrow’s world in relation to what’s going on today, and think that what’s going on today is really………………..broken.
Think about this……….when e-commerce becomes common place………and don’t think it isn’t happening…………are you going to need “Amazon” to sell your product? NO. Guys, I’m already so used to the Information Age transformation that I forget Industrial Age practices are still in place. The future is a level playing field. The guy in his living room has the same ability a Cabela’s does. The only way to change this is to join that fella’s game…………..your own site, your own product, with your own marketing incentives, and no middle man between “the store” and the consumer. Only a delivery guy, that YOU will pay for. Who’s got the leverage then? Fixed price your brains out!
In the meantime, price fixing isn’t working according to my observations. Ebay is loaded with “little guys” that can’t compete with the big guys anyway and have to sell out for whatever they can get. It might work in people getting the same deal in a local shop but the profitability factor is in the volume and again, the little guy comes up short. Convenience, selection, availability…………the big guys are big guys because of bigger risks and bigger visions. Somebody somewhere in some place and time has to start from scratch. The magic isn’t in the business, but in the mind of the business owner. That applies to St. Croix as much as it does it’s merchants. I wouldn’t worry about retailer leverage unless I planned to one day be dependent on it. Apparently………..they either believe they are or that they will be someday.