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Why are there so many MSCs?

January 12, 2016 01:23PM
I have been mystery shopping for 6 months and have been enjoying it but this has been nagging me. Why are there such a large number of MSCs who all seem to have a relatively limited number of clients? Take NSS for example, from what I can tell they have the pizza shop and maybe one or two other clients, and I see the same pizza shop with another company. Why doesn't the bigger of the two MSCs with this same pizza shop gobble up the smaller MSC? I can understand some diversification, for example ath power specializing in all those bank shops, but there are seemingly dozens and dozens of MSCs that keep sending me the same emails for the same exact one or two clients. How do they all stay in business? It seems like this industry is ripe for consolidation. Thoughts on this topic are greatly appreciated.
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January 12, 2016 01:48PM
Well, as far as NSS goes, I talked to a scheduler about it once. He said that it would be impossible for them to shop every single one of that well-known pizza chain's locations, so other MSCs are contracted as well. NSS has been doing the shops for over a decade so I don't think they are in any danger of losing that client. And many, many small start up companies just can't stay in business, so one goes under, and another starts up, but industry giants stick around for a long, long, time. Also consider that some companies may only show a few clients in your area but have more clients in other parts of the country.
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January 12, 2016 02:03PM
Because this is America and we have free enterprise. Basically anyone can start their own MSC. Now being profitable and staying in business is another story.
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January 12, 2016 02:35PM
There's that, too.
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January 12, 2016 02:47PM
It just seems to me that gravity should be taking more control over this situation. The bigger clients will seek out the bigger MSCs and it would create a cascade effect that would result in a half dozen huge MSCs that basically have all the big clients.

Take Trader Joe's for example, they have over 450 stores, they are a huge grocery chain. But the MSC I shop them for only has them and a few other random apartment shops. Shouldn't there be some massive MSC for grocery stores by now for clients such as Trader Joe's???
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January 12, 2016 03:05PM
Some clients prefer a smaller company, perhaps believing that they will get better service and more personalized attention.
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January 12, 2016 03:17PM
As a dining customer, I prefer to support local Mom & Pop restaurants. I get better customer service and better food in a less chaotic environment.

jrobidoux, bigger is NOT always better!
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January 12, 2016 03:21PM
This is very true Sybil2, but as JASFLATMT said, NSS couldn't handle all of the large pizza chain shops, so that chain has to use more than one MSC, that seems crazy. For a large chain like that there obviously just isn't any 1 MSC that can handle it all, but that has got to be very inefficient for the large pizza chain.
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January 12, 2016 03:27PM
The reports are very, very similar with both MSCs, so the client is probably okay with it...and I think some locations are not shopped by either MSC. Maybe the franchise owners have to be in agreeance to get shopped? There was a third MSC for awhile, but they were pretty stubborn about not paying bonuses so they may have not been able to get shops filled.
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January 12, 2016 05:06PM
As an IC the last thing you should want is consolidation of 200 companies into several large corporations. My guess is you somehow feel it would be easier to only register and search for jobs with a dozen companies. There are some real downsides to the concept.

Think about a few things.

Larger companies have more overhead which means they need to keep more of the money to cover their costs and expenses. Translation: lower fees

Larger companies have more buying power which means they can keep their cost of goods or services down. We are their goods and services. Translation: lower fees

To many big companies we are a number. Translation: no relationship building which means less opportunities which means lower fees.

Do you see a pattern?

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
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January 13, 2016 09:55PM
All excellent points. Also, with only 10 MSCs if you ever have a disagreement or decide you don't want to work for one, then 10% of your possible work is gone.

There are reasons that a body stays in motion
At the moment only demons come to mind
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