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Ricoh America's Trying to Poach Dealer Account?

First, let me state that what I'm about to post came from a long time P4P member.  He emailed me a few minutes ago, in reference to a Ricoh America's Direct sales person that contacted one of his accounts via email and sent pricing via email.  Our P4P member is a Ricoh dealer and has had this client for 7 years, in addition the entire MIF is owned by the dealer.

"This is our account for the past 7 years and we have all the MIF.
This guy knows better and I want his rear end in a sling.
Plus he sent pricing and alluded to special programs which could make our client think we are not giving him the best contract pricing."

What I can tell you is that the account is a higher education account.  What alarms me, is that this price was emailed to someone that the sales person thought was the buyer. See the note on the bottom that states if you are not the correct person to email this to, then please forward to the correct person.

Was this salesperson just fishing?

In any case, the most alarming is the trade-in rebates being offered to the client for a higher education contract.  Our dealer has no knowledge of this rebate, thus the client assumes that the rebate is something offered by Ricoh since it is an additional heavy discount from the contract pricing. 

What ever happened with "Rules of Engagement"?  If I'm aware an account has devices from Ricoh America's, I won't even waste my time providing a quote. I move on to the next potential prospect. 

OMG, this guy has seventeen years of experience and he is fishing via emails and sending pricing?  How can this be allowed to happen in the channel?

Take a look at the pricing you decide for your self, is this fair business practice?

Here's the email from the Ricoh America's Direct Salesperson:

Please review the attached promo pricing for New Ricoh Clients.  In my seventeen years with Ricoh, I have never seen pricing like this!

$3,180.00 for MPC4503 / 45 PPM BW and Color / 110-180 IPM Scanning / 3,300 Sheet Paper Supply / Stapling / Etc. (Outfitted Nicely)

$6,675.00 for MPC8002 / 80 PPM BW and Color / 120-220 IPM Scanning / 4,300 Sheet Paper Supply / Stapling & Hole Punch / Etc. (Outfitted Nicely) 

Note from Art: (I omitted the body of this email since it had no bearing on the talk track)


If this is not an area of your responsibility, may I respectfully ask for a reference to the correct person within your organization.
I'm hoping to hear more on this and also hoping that the Print4Pay Hotel member will post a response and tell us more about this.

-=Good Selling=-

If you like something I've posted please feel free to click the "like" button!

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Comments (16)

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This is a 2 way street as I have heard of dealers TARGETING Ricoh direct accounts, it's a nature of the business.  If the rep was taking that good of care of said upper education account, then there wouldn't be a problem, which it doesn't appear there was a problem.

I think I want to start buying our machines from RBS instead of Ricoh Distribution.

The directs are the biggest whores now a days and the Japanese could care less as long as that factory keeps running. It's amazing to me how much they have screwed this industry up in the last 20 years.

Last edited by Jason H

In the days where a majority dealers are not exclusive to any one specific manufacturer we (dealers) are fair game as maybe we should be.  If you are fortunate enough to have two or even three lines to choose from you always have the option to switch lines.  I would contact your dealer rep and let him know that due "poaching" you will be presenting a different manufacturer option since you can not compete with pricing on the same equipment offered by direct.  Fair is fair.

It goes both ways.  As a RBS employee I understand and follow dealer incumbent ROE but for the dealers their are no rules, I have had 100% MIF poached and lost significant deals because the dealer got better price support from Ricoh.  If only we all played fair - but it's a one way street, so there is no "fair".  The RBS employee here should ask himself if it's really worth it, and then go find someone else to sell to.

Last edited by Tom
msaeger posted:

I am always hearing our sales people complain about dealers taking accounts from us. Then I read your blog and see posts about direct stealing dealer accounts. I always imagine if I were the buyer and how mad I would be if I found out who I can buy from is being limited. If I want to but a dell laptop I can compare dell with their dealers.

It's crazy business out there, I would not mind having NO "Rules of Engagement" as long as the pricing was similar for both players.  Ten years ago, I lost all 5 of my Majors to Direct taking them on price.  It was ugly.

I am always hearing our sales people complain about dealers taking accounts from us. Then I read your blog and see posts about direct stealing dealer accounts. I always imagine if I were the buyer and how mad I would be if I found out who I can buy from is being limited. If I want to but a dell laptop I can compare dell with their dealers.

Just yesterday I was speaking with a P4P member, this member had interviewed with KonicaMinolta some 8 weeks ago.  Our P4P member posed this question to the Regional KonicaMinolta Manager.  With Ricoh we have  "Rules of Engagement", basically we can touch theirs and they can't touch ours.  Does KonicaMinolta have something like this?  The Regional Manager replied with, "we have a similar process, however, we can always take their (dealer) business and apologize later."  Once hearing that our P4P member did not take the job offer.

Just an FYI,

We had a sit down with the branch manager several years ago and they were firing anyone who violated the rules of engagement and Ricoh was reimbursing the dealer for poaching the accounts. After that we rarely had any problems of them poaching our accounts but the pricing is still an issue in those types of accounts. Just remember everyone is playing by the same prices and rules. It must be true, right....?

If you bring this to the attention of your Ricoh Dealer Support Manager. One of our partners has started firing any direct reps that don't follow the rules of engagement.

About 6 months ago I lost to a Ricoh rep using government pricing. $97 per month on a 60-month lease for a Ricoh MP C3003 with a booklet finisher. I had 0 profit in my quote and was still more expensive. There is just no money in those accounts for reps that work off of GP.

As promised, here is the email from the dealer rep:

I received an email this evening from the purchasing director of a large educational institution that has been our exclusive customer for Ricoh products going on 7 years. They are very happy with my company and this is why I was contacted and asked to take care of it. The email simply stated "you want to give this guy a call?"


It was in reference to a RBS rep sending special rebate university contract pricing (the exact same contract and pricing we use but I have never seen this type of rebate discount published) to my customer unsolicited. 
The pricing with rebates is absolutely rediculous (attached) and this or any customer could interpret it in such a way as to feel I am not giving them correct pricing options when in fact I have been based upon what is sent out to dealers.


My major issue is twofold.
1. Why is this RBS jackass calling on my long established account when he is in direct violation of the rules of engagement and should know better?
2. Why are you sending out special pricing with absurd rebates on a public piggyback contract that is for use by direct and independent dealers? Technically this pricing should not be just for you as this is a public contract?

Any price reductions however rediculous must be available to all authorized contract sellers and agencies that can buy from said contract.
I am beyond pissed off. This guy and his manager should be held responsible for these actions and severely reprimanded to set an example and show the dealers that Ricoh is serious about supporting the ones who are responsible for 40% of their business.


I know this is happening in many places.


Please put the pricing and rebate attachments out there for everyone to see.


Watch out folks, this could be in your existing customer's inbox as we speak.

Attachments

The US Communities Contract is what we use for School Accounts as well as non-profits and Govt. You can sell below the contract price you can't sell above the contract price.

One of my techs sent me a photo of a Ricoh business card from one of our School Dist. Unit Offices and when I notified my DBM she asked what the Ricoh Rep was talking to them about. We have a machine right next to the receptionists desk with out sticker on it. A Ricoh rep is supposed to do an about face and disengage if they enter an independent RFG dealer account but they aren't doing that these days and I don't think Ricoh cares.

Amanda posted:

Wow! I would start buying from direct if I could get those prices! Also I would like to know what contract as I haven't seen access to one like that.  I hope this gets taken care of for the dealer. What an overstepping intrusion and intentional malicious attack on the dealer customer relationship.

good point, maybe dealers should just buy from direct!

Amanda posted:

Wow! I would start buying from direct if I could get those prices! Also I would like to know what contract as I haven't seen access to one like that.  I hope this gets taken care of for the dealer. What an overstepping intrusion and intentional malicious attack on the dealer customer relationship.

just pm'd it to you!

Wow! I would start buying from direct if I could get those prices! Also I would like to know what contract as I haven't seen access to one like that.  I hope this gets taken care of for the dealer. What an overstepping intrusion and intentional malicious attack on the dealer customer relationship.

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