GOVERNMENT GUARANTEES

[Anonymous]

Government
Guarantees

By Ronelle Ingram
Industry
experts continue to write and speak about the no-growth or static growth economy
in the office equipment sector. Yet each major manufacturer’s marketing
spokesperson continues to predict that his or her specific company will grow
their own business by 5-15% this year. Someone has to be either misinformed or
overly optimistic.
How is the independent dealer
supposed to increase market share in this no-growth climate? Reportedly, the
size of the marketing pie is remaining static. Yet everyone is expecting to
receive a larger piece of the proverbial office equipment
pie.
If our market’s pie is static, the
only way to grow your share of the business revenue is to take new business away
from some other companies. For the independent dealer, the logical place to look
for growth is from disillusioned customers of the major manufacturers.

Ricoh, Toshiba, Kyocera and Global
continue their quest to acquire formerly independent dealers. With each
purchase, there is a shift in the local market. Aggressive independent dealers
can take advantage of any change in ownership in your market place. Customers
and the employees of the newly purchased companies are a bit more vulnerable
than usual. Change always creates an atmosphere of vulnerability.

A common tactic the incumbent
dealer may try to use to keep a wavering (former) customer is to
threaten:
–“You must buy all your products
from us or we will not service your equipment.”
–“You can not
buy compatible products because it will void your
warranty.”
–“We are the only authorized
dealer in the area.”
–“You can only buy parts from an
authorized dealer.”
–“If you do not have a service
contract, we will not service you.”
–“Other products are counterfeit
and against the law for you to use.”
When dealing with purchasing
agents, trying to convince them that these threats are just that—ideal
threats—is often difficult. Once a current vendor threatens to disrupt the flow
of the customer’s business, trepidation sets in. Historically, purchasing agents
will side with a current vendor, even at an inflated cost, rather than take a
risk at a similar or lower cost with an unknown vendor.
I have found
factual, authoritative documentation will help purchasing agents be educated
enough to make a change. This also gives the purchasing agent documentation to
file away, or to use to explain to a supervisor why a change in vendor was made.

Treat all decision makers in a
professional and respectful manner. Provide them with factual material that will
help back up their choice to start (or continue) buying from your company. Your
ability to provide factual information that will provide them with legal
recourse when they are threatened by other vendors will win you creditability
and their business.
Following is documentation of the
U.S. federal laws and regulations that will enable you to professionally stand
your ground when dealing with other companies that threaten your clients with
unlawful statements.
Free trade and fair competition are
part of the American business cycle. Learn to let the United States government
be your partner in growing your market share.
Federal Trade
Commission
Bureau of Competition

Clayton Anti-Trust Act
of 1914
The
Clayton Act was established in 1914 in order to prohibit actions that may
substantially lessen competition or tend to create a monopoly in any line of
commerce. It prohibits such activities as: price discrimination, selling of the
same commodity to different buyers at different prices, exclusive dealing,
holding a retailer or wholesaler to a single supplier on the understanding that
no other distributor will receive supplies in a given area; interlocking
directorates, holding by an individual of directorships of two or more competing
companies; and companies holding competitors stocks. It also prohibits mergers
and acquisitions where the effect is to lessen competition or to tend toward
monopoly. It gives the U.S. Justice Department and the Federal Trade Commission
authority to block any merger that would violate antitrust
laws.

The Clayton Antitrust
Act (1914)
The Clayton Antitrust Act is comprised of SS12,
13,14-19,20,21,22-27 of Title 15.

Sec. 14. Sale, etc., on agreement not to use goods of competitor
(S3 of the Clayton Act):
It shall be unlawful for any person engaged in commerce,
in the course of such commerce, to lease or make a sale or contract for sale of
goods, wares, merchandise, machinery, supplies, or other commodities, whether
patented or unpattended, for use, consumption, or resale within the United
States or territory thereof or District of Columbia or any insular possession or
other place under the jurisdiction of the United States, of fix a price charged
therefore, or discount from, or rebate upon, such price, on the condition,
agreement, or understanding, that the lessee or purchaser thereof shall not use
or deal in the goods, wares, merchandise, machinery, supplies, or other
commodities of a competitor or competitors of the lesser or seller, where the
effect of such lease, sale, or contract for sale or such condition, agreement,
or understanding may be to substantially lessen competition or tend to create a
monopoly in any line of commerce
Bureau of
Competition
The FTC’s antitrust arm, the Bureau of Competition,
seeks to prevent business practices that restrain competition. As a result,
purchasers benefit from lower prices and greater availability of products and
services.
The
Bureau carries out this mission by investigating alleged law violations and,
when appropriate, recommending that the Commission take formal enforcement
action. If the Commission does decide to take action, the Bureau will help to
implement that decision through litigation in federal court or before
administrative law judges.
The Bureau also serves as a research and policy resource
on competition issues. It prepares reports and testimonies for Congress, and may
present comments on specific competition issues pending before other
agencies.
The
Bureau of Competition has developed expertise in a number of industries
important to consumers such as health care, other professional services, food,
and energy.
The antitrust laws are enforced by both the FTC’s Bureau
of Competition and the Antitrust Division of the Department of Justice. In order
to prevent duplication of effort, the two agencies consult before opening any
case.
The
Commission’s antitrust authority comes primarily from the Federal Trade
Commission Act and the Clayton Act both passed by Congress in 1914.

—Most current update and judicial ruling, January
2005
Have
your entire selling and servicing staff be familiar with these documents. Have
them ready to give, email, fax and include in any sales presentation when the
competition pressures your customer. Knowledge is a valuable partner in your
quest to increase your market share. Do not allow your clients to be intimidated
by unfair business practices of other companies that are vying for their
business.

[Author]

May 14, 2005 at 11:04 AM