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Industry Insights Does Your Vendor Have Any Integrity? rom the FEDA President, Brad their price to be competitive. They Wasserstrom: The FEDA Execu- really had to dig deep, so they took tive Committee had a lengthy dis- our margin out rather than their own. cussion at its recent retreat about the You know the drill. They had to have growing concern in the dealer commu- this piece of business to make their nity regarding direct discussions numbers."So sorry, but we can't honor our commitments to you between manufacturers and dealers' customers that It illustrates in story this time. There wasn't enough room to leave the undermine dealers' pricform the kind of rebate in." ing, confidentiality of information and rebates. This situations that Ralphie Rep: Well, also goes to the very heart of dealers really do bad news on our end. the trust that dealers have face all too They have done exactly in their manufacturer partners. The following is a frequently regarding the same thing to us. We semi-fictitious dialogue,not the trust factor with have a clearly-defined compensation agreement, a specific occurrence, cretheir suppliers and but they aren't honoring ated by FEDA member Hal Schroeder, president of its effect on pricing. it either. Same story. "We had to dig deep for this Concept Services. It illustrates in story form the kind of situations piece of business and we had to cut that dealers really do face all too fre- your commission. Sorry." quently regarding the trust factor with Joe Dealer: So the reps got treated their suppliers and its effect on pricing, confidentiality and rebates. Read and the same way? There are other dealers that work with this customer besides see if it does not sound familiar to you. us. They all have clear agreements in place with the vendor as well, and A Dealer and Rep Have a those agreements also are not being Conversation… Joe Dealer: Hey Ralphie, we've got a honored. It's a clear breach. big problem. Ralphie Rep: Same with us. All the Ralphie Rep: Something on our end? reps in their territories got screwed, too. Apparently our agreements don't Joe Dealer: No, one of your key lines mean much either. and historically a good supplier that we Joe Dealer: This is really short-term thought we could work closely with, has gone direct to our customer and thinking. They pick up $1 million in disclosed our pricing to them. It's a quick business but lose $5 million long breach of our agreement with them as term from the dealer community. How well as highly unethical. To make mat- can we work with them? How can anyters worse, now they're telling us the body trust them? pricing they disclosed is non-rebatable. Ralphie Rep: It makes it difficult for Ralphie Rep: I know the story. Here us. We'll now lose multiple opportunities from you guys. It even affects our we go again. regional sales managers. Their bonus continued on page 44 Joe Dealer: They said they had to cut F Hal Schroeder, President Concept Services hschroeder@conceptserv.com Brad Wasserstrom, FEDA President BradW@wasserstrom.com 6 FEDA New s & View s

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