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Cold Shoulder
By: Tama Swan, Associate Editor
Issue: 2009aug
A Distributor Asks:
“I ordered 1,000 custom bags from a supplier who assured me he could meet my in-hands date. However, the bags were delivered two weeks late and were unacceptable because the decorative stitching on the front was not aligned and the color was wrong. I have tried calling and e-mailing the supplier to dispute the charges, but he will not return my calls or acknowledge my e-mails. What can happen in the long term if I don’t pay?”
Deborah Walsh
Director of Credit
Debco Bag Distributors Ltd.
UPIC: Debco670
Because the bags did not meet your timeline and the product was not acceptable, your supplier has broken your contract and the payment of this invoice is void.
I would suggest sending a registered letter to your supplier advising him or her of your situation/disappointment and note that you will be returning these goods collect.
Since you will not be paid for this order and your relationship with your end user is now tarnished, your letter should mention compensation for these mistakes. The lack of concern and communication that this supplier is showing is unacceptable, and a possible red flag of how long this supplier has been in business. When shopping for a supplier, look for one that shows responsibility, quality and a genuine sense of caring for its customers—one that has been around a long time building its reputation on doing things right and building strong relationships with its clients.
Sam Knox
Vice President
Clever Advantage Inc.
UPIC: CLEVERAD
There aren’t many suppliers like this out there. Normally, if you use a supplier with good industry ratings this won’t happen.
I would have the bags shipped back to the vendor and file a complaint with all your industry trade associations. The in-hands date was not met, and the product was sub par. In this environment, as distributors, we can’t just “eat” supplier mistakes.
In the future your options are to discuss the supplier ratings with your client and either reject the deal or void all of your company’s guarantees and warrantees. I would lose the deal rather than deal with an unreliable supplier.
We’ve worked hard to build our brand, and suppliers with poor communication and product quality do not deserve to piggyback off of our efforts. There are way too many good suppliers out there eager to earn your business. Pay a few pennies more and make a client and a vendor for life.
Ross Dohrmann
Director
Gemline GlobalSolutions
UPIC: GEMLINE
What you experienced is why so few distributors import and stick to inventory in the good old USA. The only way to combat your experience is to use a reputable agent that will provide product to the quality levels you expect and stand behind issues like this. Often when you use a supplier or agent they have no means to deliver the services you should expect for your largest orders. In this competitive economic climate, you should continue to import as this gives you an edge over your competition, but you should use a company that offers unrivaled service and partners with you in the sale.
Lisa A. Martin, MAS
President
Benzamar, Inc.
Representing The Vernon Company
UPIC: BENZAMAR
If you don’t pay, the suppliers may send your account to a collection firm or file a suit against you. The supplier may also report your paying habit to PPAI, ASI, D&B, etc.
First, I would construct a letter outlining every detail of events with this order, i.e., when the order was placed, the event date, every phone call and e-mail sent, etc., and send it certified with proof of signature to the owner of the factory.
Did you or your client approve a PDF proof or a preproduction sample? Hang on to the proof in the event you need it for evidence if this turns into a legal matter. Did the client use the bags? Did you charge the client for the bags? If so, did you discount the sale price to your client? If your client used the bags and you had to discount the price, then negotiate a lower cost on the item with the supplier so you don’t lose any of the initial commissions you were going to earn on this order.
If the bags were refused by your client, I would keep one sample and send the rest back to the supplier with an explanation of your return. Again, send these bags with a method of proof of receipt. When a supplier misses an event date or the decoration is not correct, they often use this order as tradeshow samples. If the client wants the bags redone correctly, you may consider using a more reputable supplier in the industry.
Rick Tabone
COO
The Identity Group, Inc.
UPIC: IDG1
This is why distributors need to rely on brand lines and established reps—multi-line reps to be specific. We MLRs can present a case that is fair to all parties and come to a resolution. Why? Because the distributor is, and will always be, our customer, no matter what lines we carry and what the final outcome may be. We live in your communities, we are a village, we take care of our people.
So advice to “Bag Gone Wrong” distributor, find a MLR with a bag line and use him or her from now on.
Lee Gibson
President
The Company Store
UPIC: COSTORE
If you waited until the order was delivered to call, shame on you. If you prepaid the order, shame on you. If you didn’t check out the supplier before you placed the order, shame on you.
Nevertheless, the supplier obviously erred and probably isn’t avoiding your calls—he or she might just be out of business or out of money. If the amount is significant, you should file in small claims court immediately. Otherwise it’s not worth the trouble.
Turn the supplier into ASI, fill out an evaluation and institute procedures for your company so this doesn’t happen to you again. I would be surprised if we don’t hear about this happening a lot more.
It seems unfair to your customer for you not to have advised him or her that the order was going to be late and see if there was anything else you might be able to do given the circumstances. Stuff happens with suppliers where good vendors miss delivery dates, fortunately not very often. The best distributors and suppliers confront it head on as soon as they see a problem coming.
Answer Our Question
A Distributor Asks:
A client has asked me to warehouse his imprinted products for several months. I don’t usually do this, but I don’t want to lose the order or any future business. What terms should I use and what do I need to know?
What’s your answer? E-mail answers along with your name, title and company name to Question@ppai.org for possible inclusion in the November 2009 issue of PPB magazine.
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