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H&C Tool Supply entered bids, Cowgill suspected that the customer entered false bids to drive down the price. Suppliers that participated in the auction in good faith were unaware that the customer manipulated the process.
"There's no policing mechanism in this situation," says Cowgill. "We think there must be someone to step in and write a code of ethics."
Hoppock recently discovered a vendor selling products direct to one of General Industrial Tool & Supply's customers. When she confronted the vendor, he said it wasn't the company's normal policy to go direct, but admitted doing so with this customer.
"If there's a circumstance where the customer needs to go direct to the manufacturer for some reason, the manufacturer should stand their ground and say, 'We sell through distribution.' If the customer insists on buying direct, it's the manufacturer's responsibility to involve the distributor by compensating them somehow," Hoppock says.
Suggesting that it's not your policy to act in a certain way but going against that policy anyway is like saying you're not in the habit of cheating on your spouse, but you'll make an exception just this once.
"Our core suppliers are more important to me than any single customer because they can earn me more money than any single customer," Hoppock says. "I would hope that suppliers would look at us the same way."
Sales organizations face tough business decisions every day. Some are tough to solve; others
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