Distributor Issues
01-16-2007, 05:39 PM
#1
Distributor Issues
Has anyone else had issues with their distributors lately. I have had a glaring run in with Staub lately and, well, I just need to share so that we are all on a level playing field. This goes right back to pricing and how we dealers are being treated.
Staub has really crossed the line this time, on two fronts.
Front one, the rep (Peter) should keep his yip shut about things that do not concern him and are inherently untrue. Loose lips sink ships and this guys ship has gone down. My employees are my eyes and ears when I am not here, if you think you can call my store and start spurting off about this that and the other thing that you know nothing about or is heresay and not expect my employees to tell me about it, well, you are just a moron. The he said, she said thing gets you no-where as a rep, matter of fact it can destroy you. Guess this rep has another life lesson to learn.
Front two, hows about we have a talk about how the distributors are boning us on pricing. Being outright lied to by Dave Mason and I will quote him direct "Rob, there is no way that you are able to get Compustar 2wfmaspro for $209.95" and actually having them in my store with a invoice to show that I am indeed paying $209.95 solidified my decision on the spot to terminate business with Staub. These alarms may have come from another CDN authorized dealer who in turn bought them from Staub but at the end of the day a single lot price of $291.95 and a 20 lot price of $271.95 and then a "best price of $239.95 if I buy 50" is still too much of a price gouge for me to take. His "best price of $239.95" is as low as he could go "so there is no way that you can get them for $209.95". What about the $30.00 credit you are giving those dealers that buy these units Dave? Why do I not get this credit? Hmmm, apply that to the invoice and what do you know, $209.95 per unit. Oops, wait a minute, I was not supposed to know about this credit and you never told me about it. Behind the back dealings now as well....
Now when FS (and no bash the big box intended Claudio, Shon, Snatchez and others) here in town can bring in 1 or 2 of the units at best possible price of $209.95 (give or take) and I have to pay the huge premium to get my best price of $271.95 for a 20 lot that is still too much to absorb. The market is changing and the best move for us indipendents is to work with each other to remain competitive and extend our margins as best we can. We are in business to make money, not watch it get whittled away. Staub pissed away my business over what, $62.00 per unit x maybe 20 units and then lied about it as well. This is fact, no bs, no smoke and mirrors. I even had people listening to the phone call. So 18 years of business gone over this. If this is what being a distributor is about, selling lies and BS, I thought it was important that you all know.
This is a small community we have here, perhaps there are more people that this may pertain to that did not know they were getting the shaft as well. Imagine the fallout if all the shops in this reps territory found out that they too were paying too much for their equipment. The proof is in the invoices guys, how much are you paying.....chances are it is too much.
If I can line up with another shop in the US to extend my margins and eliminate the middleman, it is the next course of business action. Do I need someone to sell me kits and harnesses, rca's and wire here in Canada or do I do a once a quarter trip to the US and bring it all back myself. Do I need warranty on power wire, kits etc? Or is it another item that is being marked up 500% before heading out the door to me from the middleman. I can always stockpile my warranty claims and take it back down the next quarter.
I understand the value of some CDN distributors and some of them do a amazing job, but some of them just leave alot to be desired as well. Thoughts on this guys. (it is throat punch and rant day here).
Staub has really crossed the line this time, on two fronts.
Front one, the rep (Peter) should keep his yip shut about things that do not concern him and are inherently untrue. Loose lips sink ships and this guys ship has gone down. My employees are my eyes and ears when I am not here, if you think you can call my store and start spurting off about this that and the other thing that you know nothing about or is heresay and not expect my employees to tell me about it, well, you are just a moron. The he said, she said thing gets you no-where as a rep, matter of fact it can destroy you. Guess this rep has another life lesson to learn.
Front two, hows about we have a talk about how the distributors are boning us on pricing. Being outright lied to by Dave Mason and I will quote him direct "Rob, there is no way that you are able to get Compustar 2wfmaspro for $209.95" and actually having them in my store with a invoice to show that I am indeed paying $209.95 solidified my decision on the spot to terminate business with Staub. These alarms may have come from another CDN authorized dealer who in turn bought them from Staub but at the end of the day a single lot price of $291.95 and a 20 lot price of $271.95 and then a "best price of $239.95 if I buy 50" is still too much of a price gouge for me to take. His "best price of $239.95" is as low as he could go "so there is no way that you can get them for $209.95". What about the $30.00 credit you are giving those dealers that buy these units Dave? Why do I not get this credit? Hmmm, apply that to the invoice and what do you know, $209.95 per unit. Oops, wait a minute, I was not supposed to know about this credit and you never told me about it. Behind the back dealings now as well....
Now when FS (and no bash the big box intended Claudio, Shon, Snatchez and others) here in town can bring in 1 or 2 of the units at best possible price of $209.95 (give or take) and I have to pay the huge premium to get my best price of $271.95 for a 20 lot that is still too much to absorb. The market is changing and the best move for us indipendents is to work with each other to remain competitive and extend our margins as best we can. We are in business to make money, not watch it get whittled away. Staub pissed away my business over what, $62.00 per unit x maybe 20 units and then lied about it as well. This is fact, no bs, no smoke and mirrors. I even had people listening to the phone call. So 18 years of business gone over this. If this is what being a distributor is about, selling lies and BS, I thought it was important that you all know.
This is a small community we have here, perhaps there are more people that this may pertain to that did not know they were getting the shaft as well. Imagine the fallout if all the shops in this reps territory found out that they too were paying too much for their equipment. The proof is in the invoices guys, how much are you paying.....chances are it is too much.
If I can line up with another shop in the US to extend my margins and eliminate the middleman, it is the next course of business action. Do I need someone to sell me kits and harnesses, rca's and wire here in Canada or do I do a once a quarter trip to the US and bring it all back myself. Do I need warranty on power wire, kits etc? Or is it another item that is being marked up 500% before heading out the door to me from the middleman. I can always stockpile my warranty claims and take it back down the next quarter.
I understand the value of some CDN distributors and some of them do a amazing job, but some of them just leave alot to be desired as well. Thoughts on this guys. (it is throat punch and rant day here).
01-16-2007, 07:15 PM
#2
50 Watt CAFz'r
Join Date: Mar 2003
Posts: 247
now, ive not been in the game as long as you obviously, youve probably been doing this as long as i've been alive. But the shop i work at has been around for a long time, and its part of business it seems...it shouldnt be, but it is.
I have had very minimal dealings with staub, they sent a new sales rep to ontario to work the territory, but from what i can gather its really not taking off to well. Mostly because of distance and we've already got robert thibert that deals in similar product.
Trouble is youve got a long standing relationship with the company and the product so its something your used to using, but if its really that bad, guess it is time to move on.
But to get back to the point, i can list a few too, but I dont really want to bash. But it always comes down to the people representing the company. One that comes off the top of my head in the GTA/Kitchener-Waterloo and surrounding areas seems to be Alpine. That sales rep is totally destroying a 25 year relationship between them and us. Latest incident, he was supposed to come on in today and have a meeting. Didnt show up, didn't answer his phone. Oh oh! And then we placed an order, and we got it the next day. Wasn't a huge order, but it was all in carton quantities, and THE NEXT DAY they release special pricing with no notification from anyone, and we got nothing. So I was stuck hurting for margin for an order. Great!
Another one is a company called progressive sales. Our rep Rae, great guy, super nice, but there is no way he has ever done this before, and it gets really frustrating. Place and order, he forgets to get it shipped, or sends the wrong thing. Ask a question, 9 out of 10 times youve got to call to remind him to call back, and when time is of the essence, its not cool. And he shlocks product he knows about on paper, but when it comes down to it, I could find out what hes telling me on their website. And come on, on a 1 off drop order, i dont want to order 3 dozen and try to hit prepaid.
Oh! and directed electronics. From what I gathered, they closed down everyone who wasnt doing enough $. Well, we never got any notification, i heard rumors, but one day I go to open up directechs to get some tech info to install one of THEIR alarms...nothin...much to their credit, they opened us up again without a fight, but it took a week or so, a phone call would've been nice!
As far as GOOD suppliers, one around here that seems to stand out in my head is a small company called FCT. Their harnesses and kits are NOT the cheapest. But every week he comes around with his big truck and chats and gives us what we need, bills out fairly and is always happy to help with a phone call and are always willing to discuss why prices are changing and whats going on in the industry on his end.
And I totally agree, best thing the independants can do is work togther. Around here we still seem to be working against each other, and margins are getting thinner and thinner. It sucks have to make under $100 on a $255 cost deck because one guy dropped a price so everyone else had to too.
wow, i vented a little, feels good....thanks! might be back for more :P
I have had very minimal dealings with staub, they sent a new sales rep to ontario to work the territory, but from what i can gather its really not taking off to well. Mostly because of distance and we've already got robert thibert that deals in similar product.
Trouble is youve got a long standing relationship with the company and the product so its something your used to using, but if its really that bad, guess it is time to move on.
But to get back to the point, i can list a few too, but I dont really want to bash. But it always comes down to the people representing the company. One that comes off the top of my head in the GTA/Kitchener-Waterloo and surrounding areas seems to be Alpine. That sales rep is totally destroying a 25 year relationship between them and us. Latest incident, he was supposed to come on in today and have a meeting. Didnt show up, didn't answer his phone. Oh oh! And then we placed an order, and we got it the next day. Wasn't a huge order, but it was all in carton quantities, and THE NEXT DAY they release special pricing with no notification from anyone, and we got nothing. So I was stuck hurting for margin for an order. Great!
Another one is a company called progressive sales. Our rep Rae, great guy, super nice, but there is no way he has ever done this before, and it gets really frustrating. Place and order, he forgets to get it shipped, or sends the wrong thing. Ask a question, 9 out of 10 times youve got to call to remind him to call back, and when time is of the essence, its not cool. And he shlocks product he knows about on paper, but when it comes down to it, I could find out what hes telling me on their website. And come on, on a 1 off drop order, i dont want to order 3 dozen and try to hit prepaid.
Oh! and directed electronics. From what I gathered, they closed down everyone who wasnt doing enough $. Well, we never got any notification, i heard rumors, but one day I go to open up directechs to get some tech info to install one of THEIR alarms...nothin...much to their credit, they opened us up again without a fight, but it took a week or so, a phone call would've been nice!
As far as GOOD suppliers, one around here that seems to stand out in my head is a small company called FCT. Their harnesses and kits are NOT the cheapest. But every week he comes around with his big truck and chats and gives us what we need, bills out fairly and is always happy to help with a phone call and are always willing to discuss why prices are changing and whats going on in the industry on his end.
And I totally agree, best thing the independants can do is work togther. Around here we still seem to be working against each other, and margins are getting thinner and thinner. It sucks have to make under $100 on a $255 cost deck because one guy dropped a price so everyone else had to too.
wow, i vented a little, feels good....thanks! might be back for more :P
01-16-2007, 07:18 PM
#3
Brutal man... I don't blame you for dropping them at all. I agree, you guys are getting the shaft.
To give you an idea of how bad.... When I was setting up pricing for DD with Modz they included a 10-15% price increase (on top of their regular margin) in case the dollar dropped further. Which pissed me right off because I knew that there wasn't much further to drop.
This was back when the dollar was about $.79 USD... now that it's closer to $.90. Do you think they've adjusted their pricing? My guess is that they've pocketed this extra.
So their standard markup plus the extra ~25% for the adjusted dollar is just ludacris.
To give you an idea of how bad.... When I was setting up pricing for DD with Modz they included a 10-15% price increase (on top of their regular margin) in case the dollar dropped further. Which pissed me right off because I knew that there wasn't much further to drop.
This was back when the dollar was about $.79 USD... now that it's closer to $.90. Do you think they've adjusted their pricing? My guess is that they've pocketed this extra.
So their standard markup plus the extra ~25% for the adjusted dollar is just ludacris.
01-16-2007, 09:33 PM
#4
50 Watt CAFz'r
Join Date: Nov 2004
Posts: 313
I hate to hear this........but I do hear you guys.
I am an agent for a distributor, and I try to call on, or at least keep in touch with as many accounts, whether they are buying from me or not, as much as possible. Even if accounts dont buy from me......at least they know what is going on at the office. Maybe it's times like were discussing that guys will need an alternative and remember who else is out there.
I'm sure Rob can attest to that......I send him pricing and special deals all the time, whether I think he's going to buy or not.
But I think it's important that they at least know whats going on and what's available.
I cant speak for other distributors / reps, but I know that if there are any issues with my accounts, I will go to bat for them, because without that account......I dont have a customer.....period !!
Rob, if there is anything I can do to help, please give me a buzz. I would love to do more business with your store. And I can promise you this, we wont stiff you on any pricing issues.......!!
We recently did a market analysis back in December, and the independant dealers are doing more than 50% of all the business done in Car Audio in Canada. So as nice as it is to get a big P/O from a major account...........you guys (the independants) are doing the majority of the business out there, and in most cases, in a better way.
You will see that Trends focus is on the independant dealers and we will continue to offer lines that are not available on the internet, at a minimum 40% pts margin to the dealer (never mind our prompt pay discounts, programs, etc)........and that we are dedicated to assisting in building that independants business by partnering with them in a big way.
I try to return ALL phone calls within a day maximum, usually within 20-30 minutes........regardless of whether it's a "heat" call or just to chat.
Ask any of my regular accounts.....I usually answer my phone up until 9:00pm at night, I have my phone on at 8:30am in the morning and do answer calls on weekends.
I worked for 15 years on the retail side, and remember that not all phone calls come between 9:00am and 6:00pm........there are times when you need info after regular hours........and thats what I try to offer my dealers.
If I dont have an answer for you, I will get someone who does with 24 hours.
It's tough to find good people these days.......retail or wholesale. I can count on one hand the guys that I see out in stores on a regular basis.
Business is tough enough these days, that if people cant get the service they need, they'll find an alternative. I'd like to be able to be that alternative, and be given a chance to prove myself to them.
I am an agent for a distributor, and I try to call on, or at least keep in touch with as many accounts, whether they are buying from me or not, as much as possible. Even if accounts dont buy from me......at least they know what is going on at the office. Maybe it's times like were discussing that guys will need an alternative and remember who else is out there.
I'm sure Rob can attest to that......I send him pricing and special deals all the time, whether I think he's going to buy or not.
But I think it's important that they at least know whats going on and what's available.
I cant speak for other distributors / reps, but I know that if there are any issues with my accounts, I will go to bat for them, because without that account......I dont have a customer.....period !!
Rob, if there is anything I can do to help, please give me a buzz. I would love to do more business with your store. And I can promise you this, we wont stiff you on any pricing issues.......!!
We recently did a market analysis back in December, and the independant dealers are doing more than 50% of all the business done in Car Audio in Canada. So as nice as it is to get a big P/O from a major account...........you guys (the independants) are doing the majority of the business out there, and in most cases, in a better way.
You will see that Trends focus is on the independant dealers and we will continue to offer lines that are not available on the internet, at a minimum 40% pts margin to the dealer (never mind our prompt pay discounts, programs, etc)........and that we are dedicated to assisting in building that independants business by partnering with them in a big way.
I try to return ALL phone calls within a day maximum, usually within 20-30 minutes........regardless of whether it's a "heat" call or just to chat.
Ask any of my regular accounts.....I usually answer my phone up until 9:00pm at night, I have my phone on at 8:30am in the morning and do answer calls on weekends.
I worked for 15 years on the retail side, and remember that not all phone calls come between 9:00am and 6:00pm........there are times when you need info after regular hours........and thats what I try to offer my dealers.
If I dont have an answer for you, I will get someone who does with 24 hours.
It's tough to find good people these days.......retail or wholesale. I can count on one hand the guys that I see out in stores on a regular basis.
Business is tough enough these days, that if people cant get the service they need, they'll find an alternative. I'd like to be able to be that alternative, and be given a chance to prove myself to them.
01-17-2007, 06:28 AM
#6
50 Watt CAFz'r
Join Date: Feb 2006
Posts: 125
Its easier to keep a dealer then try to setup a new one, thats a fact. Rob man you and me have talked for awhile off and on and I hope you prosper. Sometimes a margin is a margin, everyone has to make some money or there is no money to support the line when it needs to be there. I know you can support a dealer in many other ways then just slashing your prices, I also know for a brand like ours no one can build up a line better then a dealer. We have implemented a couple programs for our dealers and pulled out of pasmag for some time to reinvest in our dealers.
I'd like to talk to ya, new line new products.
You know how to reach me.
-Example: 50/25/25 - you build a demo car to show off you installers skills and our line we give you 50% off dealers for product, 20,000 in sales and you get 25% back another 20,000 in sales you get the final 25% back.. If you not doing 40G's your starving period.
-Shipping capped @ 40 Canadian dollars, any size any where in Canada. No gouging.
-warranty 1/2/3/ 1 year over the table/ if the dealer installs you get 2 years,( we want our dealers installing the product ) 3 years if you use our wire and accessories( you make your margin and people pay for ext warranty all the time why not get the best wire while getting extra protection?) our wires setup to be easy to stock with our system the power wire has a pull away red line on it so it can be the ground also.( oh ya 35mm is 1.5G funny size but oh so easy to run with the new Silone jacket…)
I'd like to talk to ya, new line new products.
You know how to reach me.
-Example: 50/25/25 - you build a demo car to show off you installers skills and our line we give you 50% off dealers for product, 20,000 in sales and you get 25% back another 20,000 in sales you get the final 25% back.. If you not doing 40G's your starving period.
-Shipping capped @ 40 Canadian dollars, any size any where in Canada. No gouging.
-warranty 1/2/3/ 1 year over the table/ if the dealer installs you get 2 years,( we want our dealers installing the product ) 3 years if you use our wire and accessories( you make your margin and people pay for ext warranty all the time why not get the best wire while getting extra protection?) our wires setup to be easy to stock with our system the power wire has a pull away red line on it so it can be the ground also.( oh ya 35mm is 1.5G funny size but oh so easy to run with the new Silone jacket…)
01-17-2007, 10:10 AM
#7
500 Watt CAFz'r
Join Date: Oct 2005
Posts: 649
If your looking to buy install kits (ending the staub relationship) call the nice ppl at importel 800 363 3413.
All the B.S your going thru is why I closed my shop and joined the box store.You work your *** off it seems for almost nuthin
All the B.S your going thru is why I closed my shop and joined the box store.You work your *** off it seems for almost nuthin
01-17-2007, 02:54 PM
#8
Administrator
Join Date: Feb 2006
Posts: 16,855
IMO when Jennifer left Staub it all hit the fan. She kept that place in line - which was scary cuz she was kind of a flake 
I used to be a hardcore Staub supporter but totally changed to DLC. I still prefer a few of the Scosche kits though
I used to be a hardcore Staub supporter but totally changed to DLC. I still prefer a few of the Scosche kits though
01-20-2007, 11:37 AM
#10
50 Watt CAFz'r
Join Date: Jul 2005
Posts: 119
I would have to agree with Dukk on the DLC comment, if we dont have the kit or harness we need on the shelf we just drive over to DLC and pick one up, we do all our shop supplies through dlc and we rarely have any issues, but on the other hand i haven't had any major concerns with staub either.
