Richard Gottlieb

Toy Safety: Where are the big retailers?

"If a company like Dollar General can sell their products to my constituents, and make money off my constituents, one would think at a minimum they would appear before this subcommittee," the [toy safety] panel's chairman, Rep. Bobby Rush, D-Illinois, said in his opening statement. 

                                                                                                                       CNN, September 20, 2007

                                                                                                                        Katy Byron

Well said, Bobby Rush! Most retailers have been flying under the radar on this safety issue and, though they don’t have the legal responsibility that importers and manufacturers bear (that is unless they are importing directly themselves) they do share moral responsibility. 

Let’s face it! Downward pressure on prices starts with the toy buyer. No, it doesn’t start with the consumer. The buyer trains the consumer on what to expect in the way of retail value. Force the price down from $9.99 to $8.97 and the retailer now sees that as the “right” price.

American retailers have, through their refusal to take price increases and their ability to dictate price, done an outstanding job of providing the American consumer with expanded buying power. Make no mistake about it, this is particularly important for those consumers who make minimum wage and live on the edge. 

Is it possible, however, that buyers and their management have focused too much on the quantitative and not enough on the qualitative?   That maybe lowest price has gotten in the way of best quality?

It is time for retailers to call themselves on the carpet and take a hard look at the pressure they put on importers and manufacturers. Buying policies that involve auctions and other competitive means of winning orders focus too much on the lowest price and not enough on the lowest price for the very best products.

We have some great retailers. They can probably do more than any government or non-governmental agency to assure that American consumers get, not just the best price, but the quality of products they deserve. Let’s hear more from them on this issue.

Posted by Richard Gottlieb on September 20, 2007 | Comments (0)