Locally-owned office supply companies face steep competition today, yet many offer next-day deliveries, better service, and recirculate a higher share of revenue back into the local economy than chains or massive online competitors by working with local accountants, graphic designers, attorneys, printers, etc. — the Local Multiplier Effect.
Additionally, the Institute for Local Self-Reliance reported on a significant shift toward procurement contracts with Amazon from local municipalities, anchor institutions (like universities or hospitals), and school districts in a 2018 report, adding to the challenging environment for fair competition in the office supply industry.
We sat down with SBR partner Michael Tucker, Executive Director of Workplace Solutions Association, or WSA (formerly the Independent Office Products & Furniture Dealers Association), which represents 500 independent office and furniture supply companies across the United States. Michael shared why they advocate with the coalition and what policy solutions would help to level the playing field for the small businesses they represent.
Q: Tell us how corporate concentration or monopoly power impact the independent businesses or community you represent. Who are the large competitors? What do you think has contributed to concentration in your industry/geography?
Michael Tucker: Amazon is the biggest threat my small dealer distributors face. Amazon uses its size and buying power to sell many products below cost and charges fees too high for our members to use their platform. Many manufacturers also sell direct to end users on the platform at better prices than the dealers can buy their products for.
Q: Are there any policy solutions you would like to see to create a level playing field?
Michael: Not allowing Amazon to be a reseller on their own platform would be a good start. Exposing how Amazon is overcharging customers in the public sector would be helpful.
Q: What is your favorite part of this work?
Michael: Educating customers, resellers and public officials on the truth behind Amazon's unfair business practices. Working with entrepreneurs who are able to survive and even thrive in spite of the deck being stacked against them.
You can learn more about Michael’s work at the Workplace Solutions website or on LinkedIn.