How do you deal with it when you find your product at mass market or a local competitor?

Seeing items you carry in discount outlets is always discouraging. If even one of your customers sees that, it will leave a lasting negative impression. We have a strict policy of never reordering from vendors that do business this way. In my opinion, manufacturers need to make a choice: Either cater to the smaller retailers or the discounters. If manufacturers do want to service both outlets, they need to create separate lines that have separate identities.

If I care enough about the product because it's sold well in the past, I'll find out whether the manufacturer carries a line that's geared strictly toward smaller boutiques. If not, I ask them to check that the product is not being carried by a mass merchandiser. If they won't, or if it's something that has only been okay, I'll just drop them. It only takes one time seeing them on the shelf.

When a line appears someplace like Target, the process is simple—once I get over the initial shock (aka: my breathing returns to normal), we immediately drop the line and slash the remaining product to half price. As an upscale boutique owner, my reputation relies on not carrying the same lines as a big box or discounter. I steer clear of local competitors, since my first and only “spy mission” 10 years ago to a newly opened gift, home and paper store resulted in a gargantuan panic order of Crane's boxed goods. The following morning, I had two messages on my voice mail — one from Crane's, congratulating me on opening a second store, and one from Chris Gleason, my very insightful rep, who knew better. I stuck with the order and sold it all, but learned my lesson — no more field trips to Minneapolis competitors. Never. Ever. Period.

I've been fighting that forever. I tend to be higher end, of course, and I feel that if I can give customer service, knowledge and a warm welcome, shoppers will come to my store before they buy somewhere else. That's how I've dealt with it. I've also stopped buying from some manufacturers. Whether I stop buying just that product or the whole line depends on how much I see at mass merchants. My money will spend just as well somewhere else. I think small businesses need to stand their ground on that one. There are more small businesses than there are large businesses, and if the vendors aren't careful, there's not going to be any small merchants left. They need to realize who put them on the map, because it sure as heck didn't happen overnight. I really think they need to have a secondary, completely different line. I have a dear friend who runs a huge business. She told me she'd sold into a big store, but the product would look totally different. I took a look at it and said, “Honey, it looks just like you.”