Isn't this a monopoly or something?

[yabbadabbadoo]

What is the name of your state?kansas

This may or may not be the right forum...forgive me, if not...

1. Our business has a debt to be paid to a major beverage distributor (whose name starts with a 'P')

2. Until that debt is paid, this major distributor will not renew a contract with our business. We fully understand this. No problem.

3. As these products (sodas, juices and waters) are a major part of our sales, we cannot be without them, so until the debt is paid, we buy the products from a wholesaler, where it is actually cheaper anyway.

4. Our wholesaler has now been instructed by this major distributor NOT to sell to us or ANY other convenience stores, only vending machine companies, or the distributor will raise the prices on the wholesaler. The wholesaler is now afraid to sell to us.


This is insane. The major distributor has already denied our contract because of the debt. Fine. Not having the product hurts sales. Selling soda, juices and waters is a major part of our business. We can purchase product from the distributor WITHOUT a contract for astronomical prices. The resale prices would be out of the market. But also, without a contract, we CANNOT order BIB's (bag-in-box, the syrup for fountains drinks) from the major distributor. Our wholesaler is being threatened with price increases if they sell to any convenience stores, so they won't, even though the wholesaler has said they have suffered financially for it.

How can this major distributor (whose name begins with a 'P') get away with this? This means the only way for us in the convenience store business to get their product is only through them and only if you have a contract. It FORCES you to deal with them and only them even though there is a wholesaler you COULD get it from, if they weren't being bullied.

HELP! Please tell me that I can do something about this! What about free trade? It's like my fuel supplier coming in and saying I can't sell fuel to red cars or I have to charge certain people 10 cents more a gallon on certain days. This cannot be right. Please advise.

Many thanks in advance. D

 

[divgradcurl]

How can this major distributor (whose name begins with a 'P') get away with this? This means the only way for us in the convenience store business to get their product is only through them and only if you have a contract. It FORCES you to deal with them and only them even though there is a wholesaler you COULD get it from, if they weren't being bullied.

The major distributor whose name begins with a "P" can get away with this because it is legal -- a manufacturer has a right to decide who they want to do business with, and has a right to control the sale of his trademarked products, right up until the first retail sale. You, on the other hand, do not have the RIGHT to purchase these products -- he can sell them to you, or not, with restrictions, or not. You have the power to buy someone else's products. Antitrust law (which is what you are alluding too when you say Monopoly) exists to protect consumers, not retailers...

like my fuel supplier coming in and saying I can't sell fuel to red cars or I have to charge certain people 10 cents more a gallon on certain days.

Well, your fuel supplier isn't selling a trademarked product, so he really doesn't have any power to dictate the downstream sales of the fuel. Pepsi is different -- they have a trademarked product, and it is under trademark law that they have the ability to control (to some extent) downstream sales of their product, and can certainly control any sales or advertising that use the Pepsi name or logo.

Bottom line -- Pepsi can legally control the downstream sales of their trademarked products, and you cannot force them to sell to you.

 

[luskg]

Why don't you use a major beverage distributer with a different first letter? Say C for instance.

 

[yabbadabbadoo]

I understand that I don't have the 'right' to buy anything. If they want to be exclusive to the point of excluding themselves, so be it.

Perhaps this is why other wholesalers like Sam's took up with Coke instead.

Oh, yes, luskg, 'C' is a good letter. They have been more than generous with us.

Sales might hurt a bit but it'll only hurt for a minute...

Thank you very much, divgradcurl.