Partner or Competitor?

March 28th, 2006 | by Administrator |

So what do you do when your wholesale supplier who is supposed to be your “partner� becomes an aggressive competitor?   It seems this is something that is becoming more of an issue with the ease of setting up a retail website.

Case in point.  Tessco, one of the larger cellular phone accessory suppliers set up a discount retail website some time ago.

The Tessco retail site ‘your wireless source dot com’ (purposely not put in as a link as I don’t see any reason to help promote it) is being aggressively marketed through cost per click campaigns in direct competition with some of Tessco’s own customers.  The site offers prices at times lower than these competing websites and lower than the wholesale cost to some customers.

As an example, as of the date of this blog, the Plantronics Discovery 640 headset under the gold pricing will cost the dealer $109.  Tessco’s own discount retail site sells the headset direct to consumers for $90.  (Prices accurate as of 3/28/06)  What a great partner.

Throw in the fact that last year they added a $10 drop ship convenience fee to customers other than their own retail site (helps that competitive advantage) and you have to wonder who the real partner is.

Other suppliers with related retail ‘partners’ include Original Wireless and Pacific Cellular Supply.

So which suppliers do seem interested in truly partnering?  Brightpoint, Cellstar, Superior Communications, and Xentris do not have any apparent links to a related retail website.  From my research with retailers, each of these companies provides strong service and competitive pricing.  As a result, why waste time with a competing ‘partner’ rather than a supplier who is motivated to help you succeed as their success is directly related.

  1. 3 Responses to “Partner or Competitor?”

  2. By John Martin on Mar 29, 2006 | Reply

    Thanks for the info. With CTIA coming up this is really useful to know.

  3. By Eugene on Jul 6, 2006 | Reply

    Hi,

    It seems strange. I’ve checked both web sites: the price for the 640 headset at yourwirelesssource is $118.65; the price at tessco.com is $109.17… Where did you get 90 bucks I do not know.

    Best,
    Eugene

     

    Thanks for the comments.  The prices in the blog were accurate the day of the post.  Tessco does change prices on the Tessco site and the yourwirelesssource site so either or both may have changed.  Maybe they read the blog and decided it was bad business, who knows.   As of the 10th of July check the price on the Plantronics JX10.  Dealer cost is 160.76, YWS price is 161.25.  Even better is the Jabra BT620s.  Tessco Gold price 120.00.  YWS price 106.25.

  4. By Ben on Jul 7, 2006 | Reply

    What TESSCO does not have that one of the “true partners” on your list does have is a chain of retail stores. Please do some research on that and let us know what you come up with.
    Also, there are some exaggerations regarding pricing in your comment. Anyone with a computer could verify the validity of my claims.

     

    Thanks for the feedback.  I dont know if you are referring to Brightpoint as they do own the lets talk group of stores.  If you look at pricing though they do not undercut their dealers generally.  If it is someone other than that let me know. 

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