Why Does RadioShack Have Two Radio Suppliers?

[lars128]

I have wondered this since I started getting into scanning. To me it seems that RadioShack could cut a better deal with Uniden or GRE if they used them as the sole supplier for scanners. In the case of say a RadioShack-GRE only partnership, I could imagine a contract where GRE would not sell radios under its own name, pushing more sales to RS. Also, it seems that RS has been really pushing their GRE models as the high end models since trunking scanners came out (Pro 92 vs 91, 95 vs 94, 97 vs 528, etc) and it seems that GRE's outsell the Uniden models by a decent margin. For what a scanner enthusiast needs, one supplier could surely cover the appropriate models.

So who knows why RS uses two suppliers? Is there a historical or contract explanation for this, or does RS what to offer as many options as possible?

 

[Grog]

Going to only one supplier is usually not the best way to get good prices. Competition = good prices.


What would it be like if walmart only sold one brand of TV?

 

[kevins669]

Exactly correct. Better for the company and the customer.

I would have to look closely now that GRE has a MUCH wider distribution now, but until last year if there were no RadioShack, I guarantee no GRE.

 

[kevins669]

Dupe... somehow.

 

[mdulrich]

So who knows why RS uses two suppliers? Is there a historical or contract explanation for this, or does RS what to offer as many options as possible?

For the same reason Kenmore appliances are made by multiple manufacturers. Who ever can make the specified product in the specified quantities at the best price gets the work.

Mike

 

[jhooten]

AND, if you have a sole source supplier that encounters a prolonged loss of production you now have no product to sell. That has got to be good for business.

 

[Don_Burke]

To me it seems that RadioShack could cut a better deal with Uniden or GRE if they used them as the sole supplier for scanners.

Lack of competition rarely results in low prices.