Among other questions we asked you was, “What is the biggest challenge your business is facing right now?” As expected, the answers varied widely. But the most common themes were Internet competition, margins, big box stores moving in close to your store, difficulty maintaining a reliable sales staff, distributors being short of product, and eBay (which we categorized separately from the Internet).
Alluding to general Internet sales sites, one retailer answered the biggest challenge question by saying, “The Internet resellers: They have a 8 percent price advantage (sales tax) that makes a mockery of MAP and puts me at a major disadvantage.”
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Speaking on the same topic, another retailer said, “Internet sales are rampant and cutting DEEP into the store’s profits because of unfair prices and the US/states lack of taxes on Internet sales. And the young customers do not support storefronts and have the mindset that the Internet is the best price and have set no value in service [until they need it].”
Switching gears to another response to this question, one retailer responded, “With the onslaught of all of the manufacturers selling guitars in grocery stores, I am looking for a good bread, butter, and milk supplier.”
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