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50 Shades of Grey That Are All Bad for Business

expert-editorialI am not here to talk about the movie, the book, or even the wine. What I feel is important to speak about is the concept of the color GREY.

The color is often used to represent the middle ground on something. A feeling or action that is not too much to the left or right of a concept but straight down the middle.

Since 1/1/15 I have been in heavy engagement mode. In the consulting world it is feast or famine, and I have been working the phones to secure work for 2015.

That said, I am seeing more shades of grey (the color) than ever before. More suppliers, distributors, and retailers are holding the middle, the steady course, than I have seen through 2012-2014.

That scares the pants off me! (In keeping with the movie theme).

When I was CEO of Sam’s Wines and Spirits, I remember a particular company meeting that really became the beginning of the end for our little empire. It was a in that meeting we chose the middle.

We were a retail business that offered it all. We had high service, amazing selection, and drop to the floor prices. We offered it all, stood for nothing outlandish, and ran right down the middle. We were all kinds of grey.

Looking at our competitors and eventual major players in the game, they all stood for something and stood tall on that soapbox.

You cannot do it all. It took me years to understand that, but it remains true, especially as big box dominates all three tiers of our beloved business. The company that eventually acquired our company stands for price, less selection, and less service/ knowledge. That formula works wonderfully for them.

Distributors too cannot be all things to all people. You cannot possibly service all the tiny independent retailers in America while also servicing BevMo. Something has to give. In that example, which plays out all over America, independents are feeling the pain.

My recommendation is if you are small, deal in small distributors and small suppliers, small fish thrive in small ponds.

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If you are a brand or supplier, pick partners that know your brands story and goals. It is very hard to focus on your tequila when your distributor needs to hit EOM, EOQ and EOY with Cuervo.

The middle ground, the grey area would be great if all your customers, no matter what tier, were vanilla, but that is not the case.

Pick something to stand for on behalf of your brand or store front, and your customer will walk that line with you, but don’t be grey.

Brian RosenExpert Editorial
by Brian RosenRosen Retail Method

Rosen Retail for Alcohol Beverage offers support to retailers and suppliers alike, having created Supplier Boot Camp and Retailer Boot Camp and other award-winning programs that increase gross margin for retailers and cases sold for suppliers. Brian Rosen can be reached at brian@briandrosen.com or twitter @rosenretail.

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