How Would You Solve the Case of the Backstabbing Vendor?

AS THE HOLIDAY SEASON approached, Samantha was busy planning her store’s inventory when an unexpected letter from her longtime vendor blindsided her. One morning she walked into her office and found a stack of mail waiting on her desk. The envelope on top was embossed with a familiar Auréline logo.

One of her biggest successes had been her partnership with Auréline, a luxury bridal jewelry line known for its top-of-the-line craftsmanship. Since she started carrying their collection nearly ten years ago, Samantha consistently sold over $500,000 worth of Auréline pieces annually, earning her store Platinum Level status, which granted exclusive access to Auréline’s latest collections and, more importantly, locked out competitors.

She opened the letter, expecting to read the usual yearly term agreement from her longtime representative, Michael, but she had to read the message twice before its meaning sank in.

“We appreciate your continued partnership, but due to a decline in sales at your store, we will be offering our line to another retailer in your area.”

Thinking back over the past year, she had noticed her foot traffic seemed lighter, but she hadn’t anticipated just how much it would hurt her sales. The recent opening of Belle Maison Jewelry, a nearby competitor with aggressive marketing, may have added to the issue. Would they get the opportunity to take on her once-exclusive sales advantage?

Samantha opened her computer and began pulling numbers to piece together what had gone wrong. She ran reports breaking down the performance of Auréline pieces. She also checked to see if her marketing efforts for the line tapered off. Was she not showcasing the Auréline pieces as effectively as before? Her social media posts, email blasts, and marketing campaigns had all included the brand. But the numbers told a different ståory. This year’s sales had dropped to $300,000.

She decided to place a call to Michael to discuss their decision but was met with his voicemail.
Samantha leaned back in her chair. The numbers alone weren’t enough to explain the decision. It wasn’t just about the dip in sales. It was about the conversation — or lack thereof.

She expected more from Michael and Auréline. After a 10-year partnership, she had assumed they would come to her when the numbers were down, offer strategies, and work together to address the downturn. Instead, they had quietly tracked the decline, calculated their risk, and decided to open up to her rival without so much as a warning. Not once had they reached out to determine how they could help turn things around.

Samantha looked at the letter again. “Due to a decline in sales…” What a slap in the face. She thought back to every effort she had made to push their collections over the years. She knew retail was competitive, but after 10 years, she deserved a conversation, not a dismissive letter in an envelope.

If Auréline had told her in advance that they needed more sales or were considering another partner, she could’ve done something. Shifted her marketing spend, refocused her displays, or organized special in-store events to push their line. But instead, they had blindsided her.

The worst part wasn’t even the loss of the brand; it was the sense of betrayal. She had always believed in loyalty and building relationships that went beyond transactions. Yet here she was, realizing that one of her most trusted vendors had abandoned her the moment her numbers dipped.

Samantha’s store, once the exclusive home for high-end Auréline bridal pieces, now faced a direct competitor carrying the same line at the peak of the holiday season.

Carla C.
Alexandria, VA

I just wanted to share that this happened to us once with [a particular brand]. It was Christmas and we were trying to log in to their website to get some images for our Christmas flyer. We couldn’t log in with our password. I called to speak with their online support staff. They said someone would call me back. My rep was in disbelief. After more than 10 years with the company, they decided to cut us out and solely sell to the jewelers down the street. So messed up. Not even a phone call or email. Nothing. The companies should definitely give their loyal customers a chance first to increase sales before giving them the boot. Jerks!

Marcus M.
Midland, TX

I think almost every jewelry store owner has had to deal with this at one time or another. I found myself in a situation like this several years ago where the brand I had been selling in my store for more than 10 years went through a transition with sales reps and managers. They lost track of my account, and I hadn’t heard from a rep in months despite reaching out. Then I get an email saying that they were jumping ship to another store due to lack of production. I responded to the company that they could either buy my inventory back or I would wait until the other store got the merchandise then I would blast a massive closeout sale. They bought the product back. These brands shouldn’t push you around, especially when they preach “partnership”. If the brand truly has run its course in your store, then this should be a civil conversation, but if they’re searching for greener grass on the other side … let them go find it. They usually don’t.

Monica L.
Fond Du Lac, WI

I think a retailer requesting exclusivity is a commitment from the retailer as well as the vendor, and part of that contract should demand some loyalty from the vendor. The least they could have done in this case is communicate and offer help with sales. It is in their best interest! I wouldn’t carry the line again, even if they begged me, and I probably couldn’t help myself speaking unfavorably about them as well. It’s a two-way street, and I would be surprised if the vendor does not realize there would be repercussions!

Perry C.
Meridian, ID

It is unfortunate that the vendor doesn’t realize how dedicated you were in selling their line for more than 10 years. Apparently, money was more important to them than a relationship with your store. This is the reason we do not dedicate our inventory purchases to any brand name line. We like to pick and choose the styles and designs that best suit our customer needs and wants. This way we are not beholden to any jewelry company that feels they are superior to a retailer that sells their product. For all the retailers out there, this should be a wakeup call that you are an important partner in the jewelry selling process!

Dave H.
Orem, UT

Unbelievable?? Not really — [a particular brand] did the exact same thing to our company. We were the first store in Utah to carry the line. We supposedly had a “50-mile exclusive radius” of non-competition. Same thing. After all we could do — target advertising, signage, online marketing, etc. — the sales started to fall off. We found out it was largely due to the massive increase in new accounts in our “exclusive” area. Dozens of additional stores were now taking a piece of the [line’s] pie from us. And somehow our declining sales were our fault?? The several conversations by phone and email were nothing but offensive. We helped put them on the map in Utah. We expected something less than a slap in the face in response. We obviously no longer carry [that particular line].

Lisa B.
Reno, NV

There are two things I see going wrong here. One, the owner of this jewelry store slacked on doing her job: the numbers and the relationship. Two, the vendor stabbed a good client in the back. Vendors are not in our stores weekly or monthly … we’re lucky for an annual visit from most. However, we can’t just rely on reorders to cement a relationship … relationships are person to person. She should have her rep on the phone once per quarter, minimum — not just to order, but to be in relationship. How’s their business doing? What are their goals? Do they have new lines or products coming up? Ask them about them, not just business. It’s a painful lesson, but there are a lot of high-end jewelry lines. Do better with your next line and get on it.

David B.
Calgary, AB

I haven’t had this happen once … it’s happened about 10 times. Think I would have learned, but I can say I have now. I don’t expect anything from brands or lines except that eventually it comes down to the dollars. Great account one day and bum the next. Sobering as it is, move on. Dump the product when the other competitor starts to advertise it. Something I recall years ago at a conference was a lady from Colorado. When all of us were hyped about a line (coincidentally I carried for 22 years and just got ‘the letter’ a few months ago), the lady stood up and said, “In Colorado, we brand cattle, not jewelry lines.” I have come to understand her words carry a lot of meaning and guide myself accordingly now.

Mike B.
Duluth, GA

Just as stores add different lines, vendors move on as well. We have to remember our vendor “friends” are in business to make money. Few will sacrifice money for friendship. The best way to handle this is go out and find a vendor that sells similar merchandise, promote it and outsell the competition. Hurt feelings don’t pay the bills, so move on quickly.