Letterbox Mike
New Member
Man am I disappointed right now. This'll be lengthy, I apologize in advance, I just need to vent.
We just lost a $100k/year client to one of our vendors.
This "vendor" is someone we've been doing business with for almost 15 years. We've bought 8 or 9 pieces of equipment from them, including our two current printers, laminator and RIP. For years we exclusively bought our ink from them and a considerable amount of media. In 2009 we spent about $70k with them. I recognize we're in no way their largest customer, but we have to account for something.
Anyway, this vendor, as it turns out, has started a fairly aggressive campaign to cut their supply customers out of the picture. They've always preached to us and other customers like us that they are "our partners" and "nothing matters more than our relationship", so their about face is puzzling.
If they want to go after end-user retail work, I have no problem with that. What I have a problem with is they way they're doing it: undercutting everybody by enormous margins. They have a beautiful demo facility full of the latest and greatest wide format equipment that unfortunately for us, they don't own. It must be nice to be able to buy your ink and media for half what we buy it for, and print it on equipment you paid nothing for.
Case in point, the job (and subsequently account) we just lost was for about 400 s.f. of poster paper. Our price to the customer was and always has been $2.97 p.s.f.. Low? Maybe, but competitive on a retail level considering we print approx. 2-3k s.f. a month for this customer. The problem is my former vendor cut my legs out from under me by bidding the job at... wait for it... wait for it... $0.49 p.s.f..
The worst part is, they can service the customer well. They can provide a high quality product. They can and will deliver. And at a price absolutely nobody can touch. I don't blame my customer for dropping us. Why would they continue to use us when they can get exactly the same everything from them for pennies on the dollar? I'd do the same thing.
I questioned the president of the "vendor" this afternoon and his response was an in-my-face lie: "we do not in any way sell direct to the end user". Interesting because prior to that conversation I spoke with some local colleagues who have experienced this same problem in the last few months. Selling to hospitals, car dealerships, restaurants, gas stations, cities, and anyone else they can find. And all the while biting the hand that feeds them.
I wouldn't be too terribly upset if we lost a client fair and square. It happens and I'm accepting of that fact. But this is just low, really low. They've made it so nobody can compete with them. To me it borders on collusion.
Anyway, if anybody uses any vendors in Cincinnati, OH, PM me and I'll tell you who we're dealing with. They'll do it to you too, if they haven't already.
We just lost a $100k/year client to one of our vendors.
This "vendor" is someone we've been doing business with for almost 15 years. We've bought 8 or 9 pieces of equipment from them, including our two current printers, laminator and RIP. For years we exclusively bought our ink from them and a considerable amount of media. In 2009 we spent about $70k with them. I recognize we're in no way their largest customer, but we have to account for something.
Anyway, this vendor, as it turns out, has started a fairly aggressive campaign to cut their supply customers out of the picture. They've always preached to us and other customers like us that they are "our partners" and "nothing matters more than our relationship", so their about face is puzzling.
If they want to go after end-user retail work, I have no problem with that. What I have a problem with is they way they're doing it: undercutting everybody by enormous margins. They have a beautiful demo facility full of the latest and greatest wide format equipment that unfortunately for us, they don't own. It must be nice to be able to buy your ink and media for half what we buy it for, and print it on equipment you paid nothing for.
Case in point, the job (and subsequently account) we just lost was for about 400 s.f. of poster paper. Our price to the customer was and always has been $2.97 p.s.f.. Low? Maybe, but competitive on a retail level considering we print approx. 2-3k s.f. a month for this customer. The problem is my former vendor cut my legs out from under me by bidding the job at... wait for it... wait for it... $0.49 p.s.f..
The worst part is, they can service the customer well. They can provide a high quality product. They can and will deliver. And at a price absolutely nobody can touch. I don't blame my customer for dropping us. Why would they continue to use us when they can get exactly the same everything from them for pennies on the dollar? I'd do the same thing.
I questioned the president of the "vendor" this afternoon and his response was an in-my-face lie: "we do not in any way sell direct to the end user". Interesting because prior to that conversation I spoke with some local colleagues who have experienced this same problem in the last few months. Selling to hospitals, car dealerships, restaurants, gas stations, cities, and anyone else they can find. And all the while biting the hand that feeds them.
I wouldn't be too terribly upset if we lost a client fair and square. It happens and I'm accepting of that fact. But this is just low, really low. They've made it so nobody can compete with them. To me it borders on collusion.
Anyway, if anybody uses any vendors in Cincinnati, OH, PM me and I'll tell you who we're dealing with. They'll do it to you too, if they haven't already.
