A blog on issues affecting Australia's newsagents, media and small business generally.
Newsagent suppliers

The nonsense of territory protection by suppliers

While in the past, territory protection respected retailers who invested with a supplier, today, with online as it is and the extent to which it is growing, territory protection does not make sense.

In one regional town, a shop was denied access to products from a sought-after supplier because another shop nearby had a range of products from them. They charged over the odds for the products. Shoppers found the same products online for a lower price. The local retailer found out and wanted the supplier to stop selling to any business that sold online. That revealed to the supplier that their local retailer was charging more than they would prefer. The supplier had previously rejected selling to another business in the town, to protect the original stockist.

Suppliers need to realise that territory protection is not what it used to be, thanks to online.

In my view, it is time to move on, time to open up and let the best retailer win. It is time to end territory protection.

10 likes

Join the discussion

  1. CLdc

    Yes we too have experienced this and yes some suppliers tend to have prejudged and misplaced . misgivings about the newsagency channel.Whilst it can at times be frustrating there is no better feeling than proving these numbskulls wrong and seeing that they have backed the wrong horse.

    I agree it is much smarter for the supplier to forego exclusivity and let the customer decide. Healthy competition benefits both customer and retailer alike.

    1 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image