Reply to an email RFQ I sent out

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Thread Starter

Bob Peterson

"Before we will give out pricing we need to know who you are and where you are located? Please respond to XXXX XXXX and he will quote or no quote
based on your answer."

I find it quite curious that a sales manager would make such a statement to a customer asking out of the blue to buy 5 figures worth of stuff.

Apparently, the automation business is so good they have to pick and choose what customers they will sell to.

Bob Peterson
 
There may be several reasons why the sales manager doesn’t want to ‘quote out of the blue’; these include:
1) A purchasing agreement may be in place with your company that specifies the discount you get and who you buy from. Along a similar vein, a representative may have an existing relationship with others at your plant/company.
2) Depending on the company, representatives in different territories (or markets) may have a stake in the sale. This can be complicated if, say, engineering is conducted in a territory different from the target installation.
3) Conscientious sales people often want to ensure you’re specifying the right (and complete) system for the application. (The automation company’s reputation can suffer if goods are sold and misapplied, or if too much is sold for the problem at hand).
4) Basically, they also want to qualify the sale so they can plan/forecast their business activity.

They want to develop a relationship, you want to keep them at arms length and not consume your time unnecessarily. You have to manage your side of the relationship.

Also, depending on the automation company, ‘5 figures worth of stuff’ may not be much at all… and the automation business is probably not as good as you think; it’s tough, competitive, and cyclical.
 
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Juan Sagasti

Whatever reason he had, he shouldn´t use those words and pitch.

There´s a big store, in the city where I live that doesn´t allow you to buy unless you have a "credential card" issued by them. They charge you for the credential, and the worst part is that you have to show several bureaucratic papers to be blessed with their permission.

What kind of world is this?
 
Maybe that big store want to track your buyes for they convinience. If you don´t like that kind of way to make bussines perhaps you have not to buy there any more and tell others in your city to do the same thing in this way you can push the store to change this behavior.
 
W
There are reasons for this, because of the way many companies go to market.

Many companies go to market through exclusive representatives or distributors, and it is the manufacturer's contractual responsibility to send a customer to the appropriate rep or distributor.

Does this mean that you are not getting the best pricing? Absolutely not.

What it means is that the manufacturer has chosen to market through trained third party distribution channels. These channels provide the first line of technical support pre-sale, provide the quotation preparation assistance,
including jobsite inspection, and the post-sale support including warranty and technical support, sometimes to a surprisingly high degree.

I know of manufacturers who would go out of business if it were not for their reps and distributors saving their bacon with the customers.

So what is your problem with telling this manufacturer who you are and where you are located? Seems to me to be a reasonable question.

Walt Boyes

---------SPITZER AND BOYES, LLC-------------
"Consulting from the engineer
to the distribution channel"
www.spitzerandboyes.com
[email protected]
21118 SE 278th Place
Maple Valley, WA 98038
253-709-5046 cell 425-432-8262 home office
fax:1-253-981-0285
--------------------------------------------
 
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Donald Pittendrigh

Hi All Being located in South Africa where just about everything is imported as we are too busy exporting our raw minerals to manufacture anything of impact, we get very used to this sort of reaction from a vendor site. The next step is the vendor sends someone who is supposedly a distributor around to make a nuisance of himself under the guise of assisting you. He will take your money place orders on your behalf and make a total mess of any technical requests you make, but do not try buying from the vendor directly, he is nurturing his distributor network.... you will be surprised at how Many big names in automation observe this policy of marketing. My suggestion is to dump any product where you get this sort of treatment, there are so many alternative products so easy to locate on the web that you don't have to put up with it. I buy only where I am reasonably sure to get backup support from the manufacturer.

Regards
Donald Pittendrigh
 
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Bob Peterson

We are talking about DC contactors here. I can't imagine what a terrorist would want with 150 25A/500VDC contactors.

Bob Peterson
 
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Ralph Mackiewicz

I suppose he could have been a bit more diplomatic. I didn't see the original RFQ either. But it seems like it is reasonable to want to know who you are dealing with. My company always asks for contact information before quoting although I think we are a more polite when doing so.

Or, are you commenting about the fact that he actually warned you that they might no quote the job? That did seem a bit odd and somewhat defensive. He must be doing lots of no quotes. Interesting business. What do they make?

Regards,
Ralph Mackiewicz
SISCO, Inc.
 
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Donald Pittendrigh

Hi All
Well may you ask, our banks even charge extra for cash deposits. Like they are doing us a favour to take our money.

Donald Pittendrigh
 
B
There are a number of so called "warehouse" club stores here in the US that operate that way. I belong to Sam's club because they have some amazing bargains that just are not available anywhere else locally.
The $30/year I spend on the card is well spent.

I suspect they do it for several reasons.

1. It eliminates the need to check ID for check writers, since this has already been done.

2. Since they usually pitch their store to certain groups (such as employee's of certain companies) they end up with people they actually want in their store, as opposed to street traffic.

3. Positively identifying their customers in advance almost certainly reduces the level of pilferage. Thieves do not want their
identity known.

I call Sam's the $100 store. Its not worth going unless you will spend
$100 or so. But often, you will save the card fee on a single visit so it is well worth it. My wife and I go about once a month or naybe every six weeks.
Earlier this summer we bought a very nice umbrella for our deck from
Sams. I looked around town and found nothing I really liked. they had these umbrellas that were just what we wanted and for less than inferior (and smaller) ones elsewhere where we looked. I saved well over $30 on that purchase alone, over trying to get something comparable elsewhere, IF I could have found it elsewhere.

OTOH-you do have to be carefull not to buy too much stuff there. Its easy to convince yourself to spend more on the theory that you are saving money.

Bob Peterson
 
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Donald Pittendrigh

Hi All

The reason why their delivery and ASS was so bad is probably because they dealt through a distributor who was probably doing better margins from a competitor product anyway.

I would can them from my Christmas list if I was you.

Cheers
Donald Pittendrigh

I admit I was leary of dealing with these people anyway. A number of years ago a client bought from them. They had nothing but trouble with delivery, promises were easy to come by, but actual parts seemed to be elusive. I had hoped the intervening 5 years would have given them an
opportunity to improve their customer relations, but as far as I can tell it is no better.
 
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Patrick W McGinnis

IMO: The statement: "What it means is that the manufacturer has chosen to market through trained third party distribution channels."... is
valid in many cases, but too often not. Companies need to broaden their distribution base, judiciously, while retaining overall control of their corporate identity and integrity.

Writing as a USA Citizen / Engineer living and working in "other than a North American location":

If I send an inquiry to the "home-store" - then I expect the home-store to answer my question directly and (only) then refer me to the local
rep... not vice-versa.

Of course, that does not usually happen. I call it "passing the buck", which is probably not a good metaphor, since they sometimes "lose the
buck".

Often the "third-party distribution channel" is only a fax machine and order book (now upgrading to PC with E-Mail) that only serves to slow
and confuse communication.

Provides...post-sale support, "sometimes to a surprisingly high degree". Hmmm... That "sometimes" admits a lot about the situation. I expect a consistent high degree of support, not to be surprised when it is
provided.

This subject relates to my amazement at American marketing stupidity. I read of US Manufacturers complaining about market loss to Foreign
companies; yet they are too lazy and don't have the foresight to support customer inquiries directly, or to even configure their websites so that they accept other than US inquiries...

I can't count how many times I've filled-in web forms only to reach the "State" box and have the entire form rejected because I don't have a US
"State" abbreviation in my overseas address... Truly smart marketing!

I've complained about some of these issues to major mfr's and have had some positive responses and results in their changing their websites.
Many seem appreciative of the input. Often I feel it is typical of the syndrome where companies hire a "Webmaster" that knows how to create flashy webpages, then turns him/her loose without strict supervision or insight into the company's products, mission and goals.

However, I'll bet that on the golf course, one of the CEO's main whines is about not being able to sell to foreign markets...

Sorry about the soapbox position but this issue scratches a point of aggravation.

Patrick

*********** The opinions expressed herein are solely my own, not necessarily in agreement with those of my employer. ***********
 
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Bob Peterson

I have no problem with telling them who I am, and where I am. I do have a bit of a problem understanding the rather rude reply I got back. I'd have been perfectly happy if they had asked where we were located so they could get the correct rep in contact with me.

As it was, they eventually emailed me an 800# to call. I called it several times and no one answered. I am not impressed with these people at all. They also emailed me a pdf file of a catalog page that included list prices. However, they never mentioned if there was a quantity discount available, or if I should contact a local rep or what. Just an 800# that rings and no one answers.

I admit I was leary of dealing with these people anyway. A number of years ago a client bought from them. They had nothing but trouble with delivery, promises were easy to come by, but actual parts seemed to be elusive. I had hoped the intervening 5 years would have given them an opportunity to improve their customer relations, but as far as I can tell it is no better.

Bob Peterson
 
W
Not only do I think you're right, but I've recently written about it. See the two most recent "Notes from Walt's Desk..." archived at http://www.spitzerandboyes.com/Walts_writing/index.html for details.

It is not an accident that most North American automation and controls companies do less than 25% of their business outside North America.

If those companies wait long enough, indigenous manufacturing in all those countries will fill the places that imports from North America could have.

Walt Boyes

---------SPITZER AND BOYES, LLC-------------
"Consulting from the engineer
to the distribution channel"
www.spitzerandboyes.com
[email protected]
21118 SE 278th Place
Maple Valley, WA 98038
253-709-5046 cell 425-432-8262 home office
fax:1-253-981-0285
--------------------------------------------
 
J
I´m not complaining, It´s (well almost) a free country! I´m just amazed that they put restrictions in their core business which should be "to sell". Somehow things are getting more complicated and getting money for "exchange of goods" is not the only way to to make a company profitable.

Everyone in town is trying to lock people in some sort of "subscription" in order to increase their bottom line. Microsoft with it´s system of upgrades is doing the same.
 
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