10-22-2012, 07:34 AM
#1
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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This is the time of year that vendors try to stock up for the holiday season. I placed my order with the Valobra distributor only to see that prices just increased by approximately 35%. Angry Now I have a decision to make. Hmm

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 10-22-2012, 07:52 AM
#2
  • Johnny
  • Super Moderator
  • Wausau, Wisconsin, USA
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35% is a pretty big jump.

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 10-22-2012, 07:56 AM
#3
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 07:52 AM)Johnny Wrote: 35% is a pretty big jump.

It is indeed. I do not think that I can increase my prices by 35% and expect them to sell. I cancelled my order. So it goes.

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 10-22-2012, 08:00 AM
#4
  • Johnny
  • Super Moderator
  • Wausau, Wisconsin, USA
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If all vendors do this, maybe the distributor will rethink what he is doing.

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 10-22-2012, 08:21 AM
#5
  • VT_Hokie
  • 2-Band Bandito
  • Charleston, SC
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Good move. It's not a niche item. Many similar products for less money as it sits already. Way to put your foot down.

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 10-22-2012, 08:43 AM
#6
  • Dave
  • Moderator Emeritus
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And that ladies and gentleman is why I'll buy from Phil before buying elsewhere.

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 10-22-2012, 09:05 AM
#7
  • JAYDEE
  • Israeli Ambassador
  • Montreal, Canada
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35% is insane.

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 10-22-2012, 09:09 AM
#8
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 09:05 AM)JAYDEE Wrote: 35% is insane.

That was my reaction as well. I am looking into alternative distribution channels.

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 10-22-2012, 09:18 AM
#9
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Phil, wow, that is a stark increase!

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 10-22-2012, 09:21 AM
#10
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How does distribution work generally? Is there a single N.American distributor for most products, or can it be regional. I know that for some of my equipment there is only one guy that I can deal with as he's the distributor for the entire Southeast. I even contacted a different region distributor and as soon as they saw my address they referred me to the other guy.

Do you have more freedom than that, or is that how it can be for a lot of products?

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 10-22-2012, 09:30 AM
#11
  • Teiste
  • Moderator Emeritus
  • Salt Lake City,UT
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35% ??? what???HuhHuhHuh So , what price is the distributor recommending you for the Valobra stick? 12/13 dollars? Huh

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 10-22-2012, 11:27 AM
#12
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 09:21 AM)SharpSpine Wrote: How does distribution work generally? Is there a single N.American distributor for most products, or can it be regional. I know that for some of my equipment there is only one guy that I can deal with as he's the distributor for the entire Southeast. I even contacted a different region distributor and as soon as they saw my address they referred me to the other guy.

Do you have more freedom than that, or is that how it can be for a lot of products?

It varies by product. For Valobra, one U.S. distributor has the exclusive territory. The distribution agreements also change from time to time.

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 10-22-2012, 11:28 AM
#13
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 09:30 AM)Teiste Wrote: 35% ??? what???HuhHuhHuh So , what price is the distributor recommending you for the Valobra stick? 12/13 dollars? Huh

That is what I would have to charge if I wanted to make a reasonable profit, yes.

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 10-22-2012, 11:36 AM
#14
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If I remember correctly Valobra stick is 50gr. In my opinion even at $9 - $10 it is still overpriced. $12/stick would make this soap $24/100gr. I think I'll skip and jump straight for MdC.

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 10-22-2012, 11:38 AM
#15
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 11:36 AM)VerbaVolant Wrote: If I remember correctly Valobra stick is 50gr. In my opinion even at $9 - $10 it is still overpriced. $12/stick would make this soap $24/100gr. I think I'll skip and jump straight for MdC.

Yes, it is a 50g stick without a plastic holder. It is a very good soap but...

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 10-22-2012, 11:38 AM
#16
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Rather than Inflation, Me thinks that sometimes people get piggy.

I'm assuming that Valobra is manufactured in Italy, the same Italy that is facing it's own debt crisis as part of the larger EU debt crisis. This is not a forecast for increasing disposable incomes in the EU or by extension in the US. Inflation is when there is too much money chasing a set amount of product.

Perhaps the ingredients that use have increased in price, but I imagine that would be reflected in all soap / cream prices.

This does not seem like a good formula for future growth. However, I'm often wrong on these things. (I'm going to go watch a Beta-Max movie now)

Bye

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 10-22-2012, 11:58 AM
#17
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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It is hard to say. The exchange rate is actually more favorable than it was when I first starting carrying Valobra so that isn't it. Unfortunately I will never be privy to all of the reasons.

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 10-22-2012, 12:26 PM
#18
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Is Valobra the maker of AoS soaps?

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 10-22-2012, 12:27 PM
#19
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(10-22-2012, 12:26 PM)asharperrazor Wrote: Is Valobra the maker of AoS soaps?

As I recall, it's more accurate to say that the company that makes Valobra also makes AoS (and C&S.)

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 10-22-2012, 12:40 PM
#20
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(10-22-2012, 12:27 PM)insomniac Wrote:
(10-22-2012, 12:26 PM)asharperrazor Wrote: Is Valobra the maker of AoS soaps?

As I recall, it's more accurate to say that the company that makes Valobra also makes AoS (and C&S.)

Correct...the soap base of all three is very similar.

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