Lost another bid...To my distributor

TomTint · November 28, 2009

Sounds like I struck a nerve

November 28, 2009

To be honest Tom it wasn't you it was others, calling me a cheat, theif and a jerk. I'm a lot of things but cheat and theif aren't in the list. I might be a jerk though :lol2

TomTint · November 28, 2009

Boy are you up late. Just to clarify, I did say in this post and others like it (ones that I was not the author of) that My distributor and you in particular have been extremely helpful over the past few years we have done business. I do believe you go out of your way for me on a regular basis to obtain products that are not garden variety. As much as I bust your balls I appreciate your help and look forward to the day that you are my distributor and not my competitor.

V4V · November 28, 2009

"Many people think it’s something new for a manufacture to sell window film projects directly. However when Sonny started working for Hy-Sil, the factory that started making Madico window film in 1967 they had to sell film directly to create a demand for the installer Sonny and the installers/dealers of the future."

Thanks for the interesting history but this explains the rationale without dealing with the conclusion.

It is ethically and perhaps legally wrong (Clayton Act Anti-trust Laws) for the manufacturer or distributor to compete directly against their channel if they have better pricing, terms or conditions. It's anti-competitive.

Certainly in 1975 there was less opportunity to have a competing channel. That situation, ancient history; is no longer applicable.

Madico is at fault in this situation for endorsing it with inaction. The solution for dealers is to buy from a non competing distributor or manufacturer. Your company should be either a dealer or a distributor . .

FEARON · November 28, 2009

BONWYKE!

November 28, 2009

Boy are you up late. Just to clarify, I did say in this post and others like it (ones that I was not the author of) that My distributor and you in particular have been extremely helpful over the past few years we have done business. I do believe you go out of your way for me on a regular basis to obtain products that are not garden variety. As much as I bust your balls I appreciate your help and look forward to the day that you are my distributor and not my competitor.

I saw your other psot Tom, and mentioned them in my post. I have always tried to stay up late so that my days are as long as I can make them. I always try and help everyone and will continue to do so as long as I can. I'm sorry but I can't imagine after 40+ years the installation company ever closing. We have several employees that depend on us staying in business. Sometimes at our own exspense, we kept them all working and paid 100% of their health insurance during this down turn in the economy. I think once (hopefully soon) the economy turns around we will all have more work.

Yesterday rain today high winds, you chose the wrong weekend to be moving. Good luck with your new house..

November 28, 2009

Thanks for the interesting history but this explains the rationale without dealing with the conclusion.

This is always the case with MFG's and Dist's... they're happy to explain the rationale but will not address the issue that is created thereafter.

It is ethically and perhaps legally wrong (Clayton Act Anti-trust Laws) for the manufacturer or distributor to compete directly against their channel if they have better pricing, terms or conditions. It's anti-competitive.

I agree. I would love to see one of these MFG's or Dist's contest this...

Certainly in 1975 there was less opportunity to have a competing channel. That situation, ancient history; is no longer applicable.
Madico is at fault in this situation for endorsing it with inaction. The solution for dealers is to buy from a non competing distributor or manufacturer. Your company should be either a dealer or a distributor . .

Well put. I think you have to look at the behavior of the said company. They do not hold up to their agreements and contracts. Case in point... Diversity-Breach of Contract lawsuit that Maddy was involved in... anyone know how this trial ended? http://dockets.justia.com/docket/court-mad...case_id-103686/

Roach · November 28, 2009

anyone know how this trial ended? http://dockets.justia.com/docket/court-mad...case_id-103686/

No, do you? I don't have my pacer account currently... but I emailed a friend of mine to see if he would be willing to check into it for me.

ETA: I just got a copy of the complaint emailed to me... and the docket. The trial appears to have been this past aug... transcript is due by Dec 1st. Don't know what the outcome of the trial was however.

sbifster · November 29, 2009

I have been dealing with sgt since 1991 and I think they are great.Goerge goes out of his way to help you. I cant understand what all the crying is about if you run your business right you should be able to compete against anybody.

V4V · November 29, 2009

I have been dealing with sgt since 1991 and I think they are great.Goerge goes out of his way to help you. I cant understand what all the crying is about if you run your business right you should be able to compete against anybody.

Are you on meds?

The issue has nothing to do with his character or kindness it's all about competition.

Madico makes a product that they sell to a distributor with a mark-up of 300% and sells it to a distributor that may buy the product for a cost of 40% or more lower than their dealer (you!)

Now imagine that all three parties compete for the exact same building.

Madico can hire an installer at the same rate as you. The distributor (obviously taking time away from helping small children) can hire that same installer at the same price as . .

You.

Does that seem fair? Competitive? Legal?

All excuses aside these actions are unfair and damaging to the lowest level of their channel.

The harm is the lost sale and the reason you will lose is because they have a price advantage over you (and a considerable price advantage at that)

Do I expect any of this to change? No.

I have read many corporate legal counsel justifications for similar potential anti-trust activities.

My advice to someone who lost to their manufacturer or distributor is to document everything. Keep a precise file.

Officially protest the bid award to the end user who may not be aware of the situation nor would they appreciate participating in such an obvious questionable business practice. If that doesn't work, notify your local news outlets to your situation.