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Dealing with Exclusive Distributors

         

ssgumby

4:58 pm on Aug 12, 2009 (gmt 0)

10+ Year Member



The industry I am in uses exclusive distributorships. What this means is Distributor A has exclusive rights to distrute to North East, Distributor B has exclusive rights to South East and so on.

What this means is NO competition. We have a distributor that is sooooo horrendous. They make constant mistakes that costs us hours and hours of time to correct. They refuse to negotiate prices, refuse to resolve issues. They tell us we havent paid invoice abcd when I have proof we have. Of course we must furnish them proof. Recently we used their order form to order 20 skids of merchandise phased over 8 weeks. On the order form there were boxes for when we wanted each skid delivered. Guess what? All 20 were dropped at our door at once. Of course "there is nothing we can do, sorry".

The manufacturers of the products refuse to allow other distributors to sell it to us.

Is there ANY legal recourse for incompetence? I am so beyond frustrated. The products this distributor sells us are our largest movers, we cant just drop them.

UGH .. ok done ranting!

LifeinAsia

5:24 pm on Aug 12, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Bring your complaints to the manufacturer. Better yet would be to get together other people in your situation and show the manufacturer that it's not just one disgruntled merchant. If you can point out how the distributor's problems are causing the manufacturer to lose sales or customers, they will probably listen.

If you can get the manufacturer on your side, they could threaten the distributor with a loss of their exclusivity clause. (Of course, it depends on the contract they have with distributors.) This would (hopefully) either force the distributor to change his ways or open the way for a new distributor to come in and take over.

MrHard

6:55 pm on Aug 12, 2009 (gmt 0)



It could be your contact at the distributor. Try talking to a different rep or account manager, or start asking to speak with someone else a little at a time.

Sometimes things get off on the wrong foot and it can appear as if mistakes are being deliberately made, or constant misunderstandings occurring.

ssgumby

7:01 pm on Aug 12, 2009 (gmt 0)

10+ Year Member



MrHard,

We started with our account rep, went to the their manager and eventually to the owner of the company.

Even their truck drivers tell us the mistakes we see are made to all their customers.

It is well known that they are horrible, but they are huge and have all the power as they know you cant leave them.