There is a US sporting goods retailer named Dick's that recently entered the California market by acquiring a local chain called Chicks (go ahead and have an adolescent laugh here). They are currently trying to wipe out at least one competitor by offering a free $150 gift card with every $300 purchase. They advertise that they are celebrating their entry into the local market but it's pretty obvious what they are doing. From a consumer perspective this looks great at the moment. From a competitor's perspective it's predatory. From a manufacturers perspective, brands are being cheapened because Dick's is violating manufacturer minimum advertised price (MAP) policy. In the long term there will be less competition and they've also cheapened the brands they sell. I am not involved with brick and mortar but I daydream about getting involved in an effort to sabotage them by make several purchases and returning them in cahoots with a few thousand other conspirators.
Dick's Sporting Goods is an awesome store and I'm surprised they have to resort to trying to eliminate their competition.
I don't know, isn't this the part of being in business? I mean, when I go into a market I guess I don't try to be a jerk about it, but I'm certainly trying to be the biggest competitor and wipe the others out. It's not out of spite, but because I want my business to prosper as much as possible. This tactic is exactly what Walmart does everywhere they go. You'll have the small little mom and pop stores, Walmart comes in and they undercut everyone with their prices. I guess I don't necessarily like it, but I can't blame them either. It forces other people to lower their prices if they want to compete or rely on superior customer service.
I tell you what... the little guy can stay in business against the big guys if they offer something that the big guys can't. For instance, can you buy/order a left handed catcher's mitt there? What if you wanted an off brand set of golf clubs... does Dick's carry them? There is a way to live in the world of the Dicks and the Walmarts if you operate a little differently. I used to own a business that was part service and part product. We delivered a product to our customers on a repeat basis and my competition was some huge companies. By huge, I mean HUGE I didn't win every battle but I won enough by advertising as a local firm offering a quality product at a fair price and if you had a problem with anything, you could call me on my cell phone. I asked in my advertising, "Can you call the owner of XYZ Company on his cell phone?" I also answered my question "No, you can't because he lives in Japan." Buy from the locally owned American company and have persoanl access to the owner. I started that company in 1992 with a tad over 32,000.00 and sold it in 1996 for just under 400,000. My ex-wife is sitting on some nice cash.
Well, they are violating contracts (on price advertising) and on a local level they are doing something like dumping. I just don't like the tactic as it may lead to a situation like southern California has with electronics; it's now Best Buy and no one else instead of Best Buy, CompUSA, Good Guys, Circuit City, etc. I'd rather see Dick's compete on inventory, quality, and deals on last year's model instead of buying the market with gift cards.