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BUYING DIRECTLY FROM THE STUDIOS POSES THE PROBLEMS -- AND REWARDS -- OF DISCOUNTS, RELATIONSHIPS AND SERVICES

Retailers see pros and cons in buying videos directly from the studios. While it will take out costs and build relationships with the studios, it cuts out the video distributors and the many valuable services they provide, said participants in SN's video roundtable. "If you start pulling business away from the distributors, you'll lose a lot of edge you have with them," said Rick Ang, buyer at Video

Retailers see pros and cons in buying videos directly from the studios. While it will take out costs and build relationships with the studios, it cuts out the video distributors and the many valuable services they provide, said participants in SN's video roundtable. "If you start pulling business away from the distributors, you'll lose a lot of edge you have with them," said Rick Ang, buyer at Video Mart, Sacramento, Calif., which racks video departments in 17 Bel Air supermarkets in the Sacramento area. "I like one-stop shopping," said Randy Weddington, video specialist for Harps Food Stores, Springdale, Ark. On the other hand, Tom Hembree, vice president of operations at K-VA-T Food Stores, Grundy, Va., said, "If it's to our advantage, then I say definitely, yes. I think that we need to do it." Clifford Feiock, video coordinator at Nash Finch Co., Minneapolis, is interested in buying direct. But his company serves both corporate stores and independent customers, and the studios will only sell to the corporate stores. "So if we bought on a direct basis for the corporate stores, that would lower the volume that we order through distribution for the affiliate stores, and we would have to increase our price to them. That's a very sticky situation.