Positive Tension–It’s All the Rage!
A friend of mine works as a buyer for a nationwide retail organization – no names, no pack drill. Over dinner one night, we were discussing the press from which large retail organizations suffer – typically, their suppliers complain that their margins are constantly threatened by buyers exerting buying “muscle”. The feeling is that they dictate terms; ask for discounts to help them with price promotions, but take the credit for the promotion themselves; ask for retrospective discounts; ask for marketing support; fine suppliers for “lost profit” in out of stock situations; unilaterally impose new payment terms; threaten de-listings – the list goes on.
He told me something interesting; it’s not all one-way. Some suppliers, it seems, are far more sassy and confident in their brands than to continually give in to the demands of buyers who, on the face of it, control a large chunk of their “route to market”. He told me of one supplier – broadly let’s place them in the “one-off, pretty big purchase, household appliance” sector – again, no names, and no pack drill – who continually seems to trade on any change in terms demanded by the retailer, and who always takes time before making any decisions that may affect his bottom line. Occasionally and despite the threats of de-listing etc. that comes his way, he takes a considered view to reject the demand.
Doubtless, this is annoying to the purchaser in this relationship of equals, but I think that there should be a bit of a frisson between client and supplier – I would describe it as “positive tension”. Positive tension is a good thing. Long-term problems can occur in a situation where, for example, one side or the other always seem to be giving in and on the back foot; where the relationship ceases to be one of “equals in positive tension” and becomes