I work in a software company where all we do is make business software for distributors. It’s vitally important that they know where their material is at all times in order to tell customers what to expect and when. They also have sophisticated tools to figure out demand and predict it for the future. It’s obviously not 100% but it works pretty good. We make our distributors high tech and look smart.
Retailers, on the other hand, always, to me, look stupid. I’m talking boneheadedly stupid. They hire a bunch of minimum wage workers, put them in the stores, and ask them to basically stock the shelves. They sometimes answer questions, but a majority of the people can’t answer complex ones, or the rare ones when you are looking for something not often purchased. Some can, but eventually they are hired away for better jobs because they need better pay.
I point this out because I called 3 Toys ‘R Us stored and asked if they had “Guitar Hero 3 for Wii.” They said no they don’t. I asked them when will they get shipments in. They said they don’t know, they get shipments every day but they don’t know until they unload them.
I call bullshit.
In distribution, I could have an order for an engine kit. IT has 20 pieces, 3 could come in from my current warehouse, 7 could come from various satellite locations that I have in other cities and states, and 10 could be purchased from up to ten different supplying companies. Thanks to our software, I’ll know the average estimated time it will take for all 17 of those components to get from each warehouse and each supplier to my business where I’m building it. I’ll also know the average time it takes to make once I have pieces in stock. And finally, I can estimate with shippers like UPS and Fedex how long it will take to deliver to the customer. With today’s software, not just my company’s but just about any serious modern system, especially for huge corporations, I can give the customer and estimated time of when they would have this engine kit in their hand!
This is a game, a simple disc with a booklet of instructions, a case, and a label on the outside. It’s the easiest thing in the world to manufacture in mass quantities. A retailer should be able to reach into the internet and pull a date they estimate to have it in the store.
But they don’t. Why not? Because they don’t want you to know!
A distributor hates to not stock something a customer wants, but even still, a distributor has to be upfront because their customers expect yes, no, or specific date. If you say “we don’t know,” that’s even worse. You look incompetent. You’ll never be called again by that customer. Absolutely everything is key on saying if you can get something, and when can you get it.
Apparently retailers treat average customers like shit. The answer why is obvious, however.
Distributors are business to business companies. A business has a decent amount of money, and talks to other businesses. Some businesses are even bigger than you are, and expect royalty-like treatment. Therefore most distributors give their customers everything they possibly can within their power to make them happy and keep them coming back as a repeat customer. The stuff they sell is the same as another distributor, and usually costs the same (price competition is possible at times and customers also cut contracts for special prices but this does not mean the customer can’t leave and buy it elsewhere), so the main way they can compete is on service. Distributors also primarily over the phone, or sell by taking orders for someone at a counter but you can’t browse the inventory. Most of distributors customers know what they want when they show up (though sometimes the salesrep can talk the user into a good deal, but it’s not like a used car salesrep trying to sell you the special $500 air freshner just to up their commission).
Retailers compete by treating a customer like someone who should be spending as much money as possible. Get the customer to come into the store. If they are in the store, maybe they’ll browse and pick something else up. They advertise specials and you go in and find out they are out of those specials because they only stocked 6. Okay, so maybe you’ll buy something else while you are in the store.
What’s worse, on websites for retailers, they advertise specials, and then say they can’t sell you the item online “temporarily” and that you have to go to the store to buy it. This means you can’t enter an order and put yourself into a queue which basically says “ship it to me when you are ready.” This is a retailers attempt yet again to get you to walk into the store. Sure you can call into the store, but that’s inconvenient to do every day. It’s not about making it easy to pick one item up, it’s about making you come to the store and spend as much money as possible. Since all retailers do it, it’s not like the customer has a choice of going somewhere else.
This is not all. The person who makes these retail items often has their own consumer screwing agenda. Like I said, creating a CD of music or DVD movie or game is the easiest thing in the world. You never hear of shortages of movies or CDs. So why of games? In the games market, they like to create artificial shortages. This makes the game look more popular than it is. It also ensures a steady revenue stream. The truth is they could make almost any amount they need very quickly, they just like to make the game seem more popular by limiting supply and to guarantee revenue stream into the future.
As a group, consumers are not as organized as business. Even the people who work for distributors don’t always put the pieces together. If they did, they couldn’t do much, because one person doesn’t concern a large company when the next 200 people will buy something without a problem. You have to get organized, and in large numbers, especially since corporations have been allowed to get so big these days.
And that’s another rant I’ll need to get into someday about corporations are too huge to combat these days.
Fortunately, I have a plan. For the sake of suspense, since my son reads this from time to time, I’ll have to say I don’t know for sure if it will work. We’ll see, won’t we?