Posted on 10/05/2010 3:07:29 PM PDT by jessduntno
Final letter to General Motors
RE: Attempt to purchase our product
from our contract manufacturer
Dear Deepak, et. all,
Thank you for contacting us. We recently received your PO # 33333333. It references the quote # 444444 we have written and re-written for both you and ****** Associates, who purportedly represented you, over the past couple of months. Your most recent request (direct from your own buying group) is for Net 60 Terms and a price reduction from $9,945. to $8,700.
We have never quoted this price, and we are wondering how you got it? ####### Associates insisted we sell to them at this price, but we declined. Now we have found that you have taken this order from them and tried to buy directly from our manufacturer, eliminating them AND us, and trying to reduce the price?
As well, you have sent the order to our manufacturing location. I'm unsure how this error occurred, but please understand that from here out ##### Inc., our contract manufacturer, will direct you back to us.
I have personally spent the time with #######, the GM America engineer who originally requested the unit in August, as well as many GM representatives along the way on this sale. As your point of contact, sales should go through us. If you choose to have a third party purchase, you should also direct them to contact us directly. We do not offer any kind of discount for resellers, and GM would need to compensate a third party buyer directly, not to have them try to deduct their cost from us, as is the custom.
(continued)
It is unfortunate that a company as large as GM, with the recent financial support of the United States Government, using our tax dollars, is unable to purchase such a relatively low cost item without dictating these unchangeable and extended terms. During your attempt to find a way around us, we have all lost time and money.
I found our offer to change terms to 50% ARO, balance + shipping costs Net 60 a reasonable compromise to your requested change in our standard terms. We also offered net 30 terms with no deposit. Now a few months have passed, and we are still at square one. This was never our intent, and I hope we can get your order processed soon.
As I said before, in our initial quote we listed our standard terms as 50% deposit with the order, balance + Shipping, Net 30 from delivery. This is our standard request for any company, be it as large as GM or as small as a mom and pop shop. Our products are built to order, and the deposit goes toward the build of your product.
Per your request, I have received permission from my manager to offer 50% deposit with the order, and the Balance + Shipping costs at Net 60 terms. We cannot offer Net 60 terms without the 50% deposit. We can also accept Net 30 with no deposit, our standard terms, if you prefer.
Please review the products quoted in the attachments, and let me know how you want to proceed. Please revise your order to reflect our terms, the correct Vendor company information (see below or the attached quote) and the correct pricing. You can submit the order by e-mail or by fax at the number below.
Thank you for your attention to this matter,
etc. ####### Corporation
--------------------------------------------
GM sucks. A little background ... this is the letter we sent them when they said they would go elsewhere because we would not meet their terms or their price, which were not that big a problem, but then we got a call from our manufacturer that they contacted them directly somehow.
We are a small supply company like thousands in the US, who have goods manufactured and build units for sale. We deal with almost every manufacturer in the US, large and small.
We have never had such a dedicated effort to go around us by trying to purchase from a contract manufacturer who sent them back to us (as it shows above), as they should have, trying to screw us out of a sale for pennies. I have NEVER had to contend with more arrogant POS buyers to contend with in the 12 years I have been here. The buyers for GM are just plain ugly to deal with.
They have strained our inside sales, our management, involved no fewer than a dozen inside/outside buyers and other vendors in this crazy pursuit of extended terms and discounts of 10-15% on a relatively low ticket item. I am sure that they have already gone through more money than they are looking to save.
In addition, the buyers are in Mexico and India. The poor engineer in the US can only apologize and say he can't do anything about this.
Way to treat me, GM. I guess Americans really don't matter to you at all, do they. How many buyers did you replace? Were they not UNION?
This is the Obama and Union way except when it applies to them. America is in a death struggle and the Communist Socialist are out destroy us. George Soros rules!
I was always a Chevy fan growing up and that’s what I bought and drove for the most part. I now own an F-150 and a Mustang. I’m done with Obama Motors now and forever.
Just mark the price up $2,000 and offer them their $1,200 discount.
If they b*tch again, mark the price up another $1,000 and increase the discount to $1,500.
I've done this several times with government idiots ... which GM is ... and it works almost every time.
All big brands can be unilateral, and their staff can be devious, hiding behind the coat-tails of their big name.
On the other hand now, GM is in the no-man’s-land going from bankrupt firm to highly politicized Gov’t and union entity. So extra caution is in order. Whatever they do, no one will be happy - and they WILL take it out on suppliers!
Around our place, they're called Generous Motors.
Dittos!
Yep. I just traded in my new Caddy CTS (which hurt, because I REALLY liked it) and drove my old El Camino for about 14 years - before I gave it to my son and he fixed it up, for a new Ford Edge, which the wife loves and a new Fusion Sport for me, which is a great low cost little sleeper of a good drive.
Hospitals have been doing this with Medicare and Medicaid for decades.
“I’ve done this several times with government idiots ... which GM is ... and it works almost every time.”
Good luck if you have to deal with GM. I’ve been selling to them for years and this is brand new. Devious little pricks, thinking they could go behind our backs. This is the first time this has happened in 12 years of doing business with them. They’ve probably already spent more than they were trying to screw us for, plus the end user on the project still doesn’t have what he wants.
I wouldn’t hold any GM stock, if this is the way they are gonna roll for ten grand.
My letter to GM:
Dear Government Motors:
You are correct.
We should not expect to make any money, but lose every in order to keep inefficient @ssholes like you in business selling crappy cars.
Therefore, we have revised our terms.
You can have the widgets you wanted for nothing. That’s right—not at OUR cost—at NO cost-— to you.
However due to Obama Administration Dept. of Transportation rules, it will cost $ 15,000.00 to have these shipped to you by union labor.
Just give us the word and the widgets will be out the door.
Sincerely,
Widget Wonders, Inc.
________________________________________________________
I guarantee you will get the order and make a handsome profit.
And the buyer at GM will get a bonus.
Good luck.
Hahahaha ... I think I already burned my bridge ... they can KMA.
Welcome to the auto industry. Purchasing has been playing a nasty game of hardball for decades.
See post #10.
Huh? You are either small or you deal with every manufacturer.
It could be more widespread now, but as a business practice it's not new. I've seen vendors put out of business back in the day (in one case the vendor also made parts for a different GM division and that division was plenty PO'd to have their parts stop flowing).
Very simple solution to the problem of dealing with GM. Send the “Request for Quote” back to them marked “NO BID” and move on. The more you try to accomodate them or any other “pain-in-the-ass” customer, the more you dissapate your resorces and waste your time. Other companies do just that and we used to do it, too and not just to GM. In the end, you will be better off without the order.
Kind of off topic but....
Why is a corporation that “sends jobs overseas” for profits evil and Satanic, while...
When government-owned GM opens plants for the American market in Mexico in order to be profitable, it’s good and patriotic?
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