Let’s all agree that a company can sit in a low-cost business overhead situation and survive while creating little to no organic business. They subsist on winning existing quotes by offering overly aggressive discounts. Agreed?
I am not pointing fingers. This business model exists in all markets in all business types. It serves only to slowly drive down product pricing, thereby decreasing distributor and vendor profits. The answer is not complicated. We cannot allow it to persist in the premium and luxury markets. We have the tools to fight this model and we need to get at it. If we do not, this market will continue to slip into a few very large vendors and distributors being able to scale with low-margin products and push a lot of us out. Yes, both manufacturers and distributors.