Viewing 17 posts - 1 through 17 (of 17 total)
  • Ethical behaviour in business
  • shepleg
    Free Member

    Ok quick opinions here:

    I have gone to company X for an account to sell product Y, as all shops are allowed to do.

    Another company, who we shall call Z is a service a warranty centre for product Y, but there is another service and warranty centre as well as an additional service centre in this country.

    Company Z has been commplaining to company X (the UK distributor of product Y) to stop me even being able to buy the product, as I service other items in this industry, but would not be able to buy service parts from company X anyway.

    Really how do I stand on this, surely company Z has nothing to do with whether I can can stock the product and if this is the presedent set they will try and vito all other shops from selling the product ??

    Thoughts??

    binners
    Full Member

    I think I’ve worked it out. Does X = 3?

    dabble
    Free Member

    Sounds like business as usual, boom boom!

    brakes
    Free Member

    what is the nature of company Z’s complaint?

    donsimon
    Free Member

    Thoughts??

    There are times that a picture really is worth a thousand words.

    The decision is for the company that sells product y to make. They will decide who offers them the best overall deal.
    You need to look at what you can give the supplier that is going to be advantageous to them and more advantageous than their current deal.
    It might be that there is an exclusivity deal which benefits both companies.
    I’m not sure where you get the idea that there should be any ethics in business either, if you can offer a better deal then company X would be crazy to dismiss you.

    bencooper
    Free Member

    So you want to sell the product but not service it? But you do service other products?

    Are there other retailers of this product who do not service them?

    geoffj
    Full Member

    Company X can sell to who they like.
    Company Z can moan to / withdraw their custom from who they like.
    You need to build a relationship with X.
    Let X worry about its relationship with Z.
    If X is being an arse, then reconsider if you really want to do business with them.

    atlaz
    Free Member

    They have no RIGHT per se, but it’s not uncommon for people to force exclusivity either contractually or just over a pint in the pub against competitors. I’ve been party to a lot of contracts where we get to name half a dozen competitors the supplier agrees not to sell to in order for more revenue/more marketing/something else.

    Stu_N
    Full Member

    Z doesn’t want extra competition. They may see you as a competitor now or down the line if they think you’re likely to set up as a service centre.

    It’s really up to company X isn’t it? Whather what Z is doing is ethical or not depends on nature of complaint, surely? (as brakes says).

    shepleg
    Free Member

    brakes, competition, which is ridiculous as there are two other places offering services on the unit, and various retailers selling the unit already, so it doesn’t inpact them at all that I would be selling the item.
    Think this covers your comment too Don Simon, you can really only conclude that it’s personal, possibly?
    EDIT: It would be quite easy to set up a service centre regardless of whether I had a dealership or not if not it would just give me the incentive to undercut them even more harshly 😕

    donsimon
    Free Member

    EDIT: It would be quite easy to set up a service centre regardless of whether I had a dealership or not if not it would just give me the incentive to undercut them even more harshly

    Which wouldn’t be a problem, but what exactly are you going to do to add value to what company X is already doing. The simple question is how much more money will you make for them?

    shepleg
    Free Member

    Company X only distributes the product, so their primary concern is to sell the product and it’s associated parts.
    If I have an account I’ll sell more of their products and they’ll make more money, simple really, company Z has the issues that, they have put the spanner in the works, dealer status was offered and then has been ‘reviewed’ for the last month, have been told about complaint by a couple of company employees.

    Cougar
    Full Member

    Company Z has been commplaining to company X

    How do you know?

    shepleg
    Free Member

    have been told about complaint by a couple of company employees.

    Freudian by one from Company X unprompted 😆

    and intermated from one from company Z.

    iDave
    Free Member

    There’s no ethical behaviour in business unless it will make more profit for a business to act ethically. otherwise it’s jungle/war and logic is rarely part of the equation. I’ve been done over a load of times.

    shepleg
    Free Member

    idave, want to buy a watch/timeshare/investment scheme 😉

    Speakers? they’re over stock…

    rossm
    Free Member

    When you say “as all shops are allowed to” is sounds a bit like you feel it’s “and all shops have the right that X must engage with them”. I know you didn’t say this – but it sort of sounds like it, and it’s not the case. X is free to completely ignore you however unjust you feel it may be.

    Z does have something to do with what products you stock – if they can stop you stocking products competing with Y (if necessary by putting you out of business) then their business increases. They’re free to try to stop you with any legal means. Morality is subjective, the law doesn’t reflect everyone’s sense of morality.

    All you can do is be a great retailer of Y, and make sure X knows this. Best of luck with it.

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