Maxspect Will Now be Distributed Exclusively by Aperture in North America

[Snoopy 67]

Well I for 1, do not like this. I was tasked with soliciting donations for the club Frag Swap.
These big companies with all their brands sometimes do donate but ,it is not to the level of the brands they distribute. It's getting worse for the individual clubs unless they know someone.

 

[flashsmith]

The real problem to me is true wholesale pricing is going to vanish for the local lfs. For example I own lawn/irrigation business in a very large area. There are huge National companies in my field as well. They work on volume alone meaning the lowest price possible for the least amount of effort even if it means losing money to corner the area.I can't compete with pricing so I don't. I find customers who want a customized service where the owner is on your property every week and the quality reflects the price. Most people don't care about quality. They want cheap. That's just the way the world is. Even knowing ahead of time your gonna get lousy service as long as it's cheap that's what matters. They will corner the market even a t a loss to start and when they are the only game prices will go up.

 

[spsick]

I guess I’m not sure what the big news is. Coralvue was the exclusive distributor before, Aperture cut out the middle man. Coralvue is the exclusive distributor on a number of brands that BRS and LFS buy.

 

[JeffB418]

I guess I’m not sure what the big news is. Coralvue was the exclusive distributor before, Aperture cut out the middle man. Coralvue is the exclusive distributor on a number of brands that BRS and LFS buy.

Gets tricky when you’re buying wholesale from your actual competitor for these BRS exclusive lines. For the vast majority of products, Coralvue doesn’t sell directly to the public and thus not direct competition for the many LFS it supplies. The same thing can’t be said about those LFS who now have to buy from a direct competitor (BRS) for items to resale. Also creates some awkward situations when BRS drops a random brand wide sale on a product without giving stores heads up they are doing so, thus under cutting their own LFS customers. In addition most LFS can’t match the sales because the sale price drops the product to little to no margin for the LFS (sometimes they basically lose money if they match). But for BRS doing the sale is the same as selling wholesale to the public because they have much more margin to play with as the exclusive distributor, so they still make their money. Plus LFS are hand tied to MAP pricing rules while now BRS can control if and when they can flex MAP rules as they want with little consequence from manufactures due to their mega buying power.

For the consumer, does this matter in the short term to you? Prob not. But for the many LFS that are having a harder time running a small business with decreasing sales with the current economy, it’s a much bigger deal. And yes most LFS make their money off livestock but even there the margins have shrunk, so sometimes every penny counts.

 

[ssdawood]

Just to scare you guys I think R2R is next.
Rev is going to be rich.

Hahaha jk

 

[ssdawood]

Exactly. Exclusivity can in turn be used to create scarcity eventually. Scarcity then becomes higher pricing. No need for the easy "everything costs more" comments. Companies are bought because there are more profits that can be made in the eyes of the buyer.

Hey Billy Hi

Good points. But don't we follow Capitalist principles.
If they control and create scarcity and higher prices more competion will enter market.

I could be wrong, but wouldn't more companies join in to import stuff from China, slap their label, offer 1 year US warranty with excuses and charge us a little less.

I thought market fixes itself.
Barrier to entry is not high. Plus as you told me lot of reefers are using Chinese companies. Jebao etc. So what's the scare or problem.