Happy	Depressed	Angry
Pensive	Excited	Suicidal

So, you think you know to recognize the moods of your average supplier.........?
Fact is, there is no way to be able to tell what is going on in the head of any supplier and even less chance of knowing how you stand with them. What they portray to customers and creditors is seldom an accurate reflection of what is really happening. They display no morels and have absolutely no tolerance for anything other than what suits their self requirements. Feel comfortable, this is across the board for most all suppliers.

Wholesalers
These guys are probably the real moneymakers in the food chain. They are generally the players that set the standards for product distribution and have a large hand in the marketing and eventual perceived public image. But they live with enormous costs of staff, premises (warehousing), company cars, travel expenses, advertising, etc. They also live with the constant fear of loosing agencies because most of them represent overseas manufacturers who have little or no understanding of the local market and are easily swayed by exaggerated promises from other wholesalers.

Retailers
We have spoken to countless retailers over the years and each and every one of them, without fail, believes they have a special business that is different to any other retailer. They all believe they are doing something special in a different way to anybody else. But how wrong they are. They normally make claims to the public that they can source a wide range of products. A lot even claim to be able to obtain any and all products. But behind the scenes they spend a lot of time desperately attempting to form some alliance with selected wholesalers. And some are owned by a wholesaler.

Manufacturer - Wholesale - Retail - Distribution shift
Some alliance's last a long time but a lot are constantly changing. Some seem to move almost monthly. But the fact remains, there are always alliances and they are always up for change. Most of these alliances are formed around one thing and one thing only. Getting product to the customer in a quantity that makes the manufacturer happy.

Freight Companies
Now here's an interesting look at the same picture. We are of the opinion that manufacturers view suppliers, whether they be retailers selling to the public or wholesalers selling to retailers, as no more than freight companies. Think about it. The manufacturer has one primary requirement. They need to get their product to the consumer and via the most cost effective manner. Because of this requirement, manufacturers treat the whole food chain of delivery something akin to a series of freight companies.

In our opinion, suppliers / resellers, for all their bluff and bluster, are really no more than glorified freight companies. Both are involved in the movement of stock and both have a cost basis that relates to the end price of the product at consumer purchase point. If you were a manufacturer and hunting around for a good freight or sales company, what points would you be looking for.

We could go on and on but there is a point that is greater than the above and it is cost. The cost of goods at the point of retail. That is the real issue. It's why companies shop around so much for the freight companies they use. Because every time you add another couple of dollars GP, the final sell price of the product is increased. Take for example, the three options below where the product leaves the manufacturer with a cost of $1000 dollars.

Rough as guts figures for use as example of concept only (some wholesalers make more)

Now, as you can see by the examples above, all manufacturers would prefer to have their products distributed through supply chain 1 (Option 1) because the product would arrive at the consumers hands at a more competitive price than another manufacturers product that might leave the factory at the same price but be distributed via either of the other options (opt 2 or 3).

The point of this story - for consumers
Be aware that sometimes a low cost product does not mean the product cost less to make. Also be aware that an expensive product is not always an indication of quality. It may simply be an indication of ineffective distribution.

The point of this story - for manufacturers
Always do your own checking and keep a close eye on the real street price of your products.

The point of this story - for wholesalers
Watch your backs. Overseas suppliers are always expecting greater turnover than is practical in this country and seldom understand the cost of distribution.

The point of this story - for retailers
Don't ever think that dropping a few points and increasing your turnover a small amount will save you from being shafted. Regardless of how hard you blow your trumpet, your position in the distribution structure is only marginally above that of the freight company.