This blog has had an affiliate relationship* with the B&H for some time. Unlike some sites, the main purpose of my blog is not to generate affiliate income, though the modest amounts that the site earns via affiliate links are welcome, especially since they come from sales from vendors that I use myself.
I received an email from them today announcing the immediate suspension their affiliate relationships with sites located in California. The message was worded in a manner that is less than final and leaves some hope that they will rethink this decision. I would like to be able to continue to refer readers to them, and I think that continuing the relationship with my site and the many others that are operated by California photographers will be in our mutual interest.
The sticking point for them (and others, if you have been following the news) is that California recently passed a law mirroring those in other states that requires online vendors with a California “presence” to collect the legally-mandated “use tax” from purchasers in the state. The tax is not new, and paying it has been legally required all along. The new legislation simply requires businesses to collect the existing tax, thus making it much less likely that buyers will use online purchasing as a way to evade paying taxes that they owe. I believe that companies like B&H can compete on the basis of their products and services, and not only by appealing to out-of-state purchasers who are trying to evade paying legal taxes. California firms, and likely those in other states with the same laws, point out that this merely levels the playing field for local companies.
In the meantime, I have reluctantly begun the process of removing their links from my blog since it doesn’t make sense for me to include affiliate links when the affiliate relationship has been suspended. I encourage you to share your reactions to this situation with vendors adopting this policy and, if you are a California resident, with your legislators.
I look forward to a time – hopefully soon! – when I can reinstate the links. In the meantime, it looks like I’ll be able to add one additional affiliate to the site soon – more news to come!
* In case you didn’t know… sites with affiliate relationships with vendors typically receive a small percentage of the sale price when products are purchased via links at the site.
I’m pleased to announce that Think Tank Photo is now a sponsor of the blog. You can click on the Think Tank Photo links found around the site to visit their online store. Purchases made through the links help support this blog.
I use a variety of photography equipment bags and packs – hey, you can never have too many camera bags! However, my primary camera equipment bag is the Think Tank Airport Acceleration model.
Dan
We understand the motive behind California’s enacting this new law and we’ve always been mindful of use tax, which most states expect residents to pay on out-of-state purchases. The new law means that if we have an affiliate in California we’d be liable to collect and remit state sales tax for every California customer. Unfortunately that puts us in the difficult position of having to suspend our relationship with our California affiliates. If we determine there’s a way to eat our cake and have it too — continue our affiliate relationships and not make every California resident liable for sales tax when purchasing from us — we will certainly explore our options.
@G Dan Mitchell – The issue is not whether or not we “…will benefit by writing off affiliate relationship…” but the impact on every single California customer.
An aside to @5Edie Howe who wrote, “…they do not allow women in management positions…” I am sorry you labor under this misapprehension and I’m happy to report it’s entirely incorrect. Our most recent example is that when our Event Space coordinator, Jennifer Diamond, left after several years here to pursue another internet-related opportunity, she was replaced by Belinda Heiman. There are others, almost too numerous to mention. If you’ve visited our booth at any trade show you’d likely have met Tiffany Allis or Zully Gieseken (among others) both women in positions of responsibility with years of tenure here.
Henry Posner
B&H Photo-Video
Henry, thanks for writing and sharing your perspective on this issue.
I can appreciate the factors going into the decisions of firms that do online sales with California customers. As a Californian, I hope that a way will be found to allow California (which is in dire financial straits partly, though certainly not wholly, due to declines in sales tax receipts) to reliably collect that taxes that Californians owe when they make online purchases. In this day of computerized everything, I don’t think that the technical problems will be unsurmountable. I can understand the concern that online retailers might have about a possible sales decline among those buyers whose chief goal is to avoid paying taxes. However, from what I’ve seen, retailers like B&H have built reputations based on things far more significant and attractive than avoidance of sales tax. B&H is known for their tremendous stock, their quick response, their high quality products, their good service, and their fair pricing and I believe that these qualities will ensure their success even when legal tax collection becomes part of the transaction. I think that B&H will agree that these are the factors that define their company and which continue to attract customers.
I didn’t reply to Edie’s point about women in management positions since a) I didn’t want to spin this discussion off in too many divergent directions, b) I don’t have any basis for commenting on that, and c) my main point was to explain why links had suddenly disappeared from my site. I do know that when I had the pleasure of visiting B&H last summer (and having a “backstage tour” and briefly meeting Harry and a number of other great people) that I did meet female employees there.
In any case, thanks for explaining the B&H position, Harry. I hope that this situation will resolve in a way that again lets me link my pages and reviews to B&H.
Dan
Unfortunately it looks like we’re also going to have to suspend this arangement. I’m really so very sorry for all the disappointment this is going to cause.
BTW if you ever need advice or after-sales support with any order from Adorama, please don’t hesitate to email me directly: Helen@adorama.com
Helen Oster
Adorama Camera Customer Service Ambassador
http://twitter.com/HelenOster
@HelenOster
Nancy, I think you make a great point. First, I find it hard to imagine that these companies (though Amazon is so big that it may be its own world…) really will benefit by writing off affiliate relationship with any entity connected to the largest state in the Union. Second, as always happens on the Internet, someone immediately locates and takes advantage of virtually any opportunity that presents itself in cases like this.
Dan
(I haven’t heard anything about Adorama yet, but I’d love to know if anyone else has.)
Wondering is Adorama will follow suit. For those in SoCal, this is a huge opening for Samy’s, whose web-presence is, unfortunately, could use some work. Even with 3 store locations, the LA area is so large, that a lot of folks live 60 miles from any store location.
OK good – thanks Dan.
When you have a retail or some other presence, that makes a big difference in my opinion. I feel your frustration at suddenly being cut off.
Ron, I’m pretty certain that this only affects out-of-state firms that have a California “presence,” as in a branch office, a subsidiary company, a local retail outlet… or affiliates. So, at least as I understand it, this law does not affect you. And I’m also pretty certain that it only applies to state tax (the so-called “use tax”) and not the city taxes and so forth.
Take care,
Dan
O, is it just a tax on affiliate commissions? I was thinking it was on any on-line sales. You are right, that wouldn’t effect me.
I think there are on-line calculators – that is the easy part, it would be filing the sale tax returns that would be time-consuming.
My hometown is a prime example. The on-line calculators almost never take into account the cap – we only pay sales tax up to a certain dollar amount. Not too mention, depending on where in Seward you live, the sale tax rate and tax cap amount varies as it is a combination of borough and City sale tax rates. Filing a sale tax return for our tiny little town is confusing and time consuming enough – multiply that by every state, county, borough and city in America and o my.
Although B&H gets very good customer reviews, I decided long ago not to seek an affiliate partnership with them because they do not allow women in management positions. I realize this is due to religious reasons, but that is not enough for me to either send business to them or do business with them. Discrimination is discrimination, regardless of the reasons stated, and I will take my money (and direct my readers’ money) elsewhere.
Hard words, yes. This is my first time admitting it publicly, too. Not an easy task, especially for a company that has such a high standing in the photography community.
Ron, I can understand your perspective on this. I imagine that the same sort of online calculators would soon be available (if they aren’t already) for California sales. They already exist for in-state sales.
I’m also a bit confused about your situation. If you are not in California and do not have any California affiliates, then I don’t believe the new law would apply to you.
Take care,
Dan
As a tiny two person operation selling prints on-line, a requirement to understand the regulations, collect and file sales tax returns with every city / county / state we have sold to would be impossible. Sure, maybe Amazon and B&H could hire people to undertake this task, but for a small business like mine, it makes doing business with places like California nearly impossible.
Doug, I think that the “wild west” aspect of the Internet is going to run its course soon.
I’ve always said that I purchase online when I know just what I want and don’t need advice or a chance to try the gear first… but that I go to a couple of specific local camera shops in my area when I do want advice or need to try the gear first.
I still tend to think that it won’t be a permanent state of affairs for the big online resellers to treat Californians as second-class citizens. In the long term, it cannot be to their benefit to do so. I think that they will eventually realize this, and find a way to do the right thing.
Dan
I think your perspective on this issue is right-on Dan, as much as I have enjoyed not paying tax at times.
I also enjoy having credible local shops that allow you to touch and play with gear, a service which unfortunately most
people are not willing to pay a premium for. (until it is gone?)
Doug