Marc Lizer
SGF, Supreme Grumble Framer
J D L R
CopSpeak for Just Don’t Look Right.
The FYI Thread seemed to be a hot button topic. After getting a few answers from Designer, things seemed to quiet down, or maybe it was just talked to death. Either way, things seemed to be put to bed.
But I have some nagging open questions, or some things that JDLR, and deserve a revisit.
The other info I got the other day from Designer still stands as more or less correct. But, like most things, if you don’t ask a specific question, then a person does not need to answer it. Right?
So here is how it works. I make an order from e-frame, on e-frame's website, and pay for it.
E-frame orders are then fulfilled directly from Designer a warehouse. E-frame does not stock it, cut it, pack it, or ship it. They collect the money and the initial order, and then hand the info over to Designer.
Here’s the problem. By definition, a distributor distributes. This is not actually happening. A distributor carries stock and inventory, this is part of the distributor pricing level, or orders with frequency and volume.
E-frame is not distributing. Distribution is being made from a Designer location, on an order fulfillment basis. E-frame only acts as an order taking mechanism. This, in itself is not a problem. The problem lies in the fact that this was not forthright, and concealed.
Can you get distributor pricing if you are not distributing? OK, so maybe the Mettle Company is actually doing distribution for the NY and upper East Coast US, and that actually entitles them to Distributor, as I was told.
But, with e-frame orders that do not fall in the Upper East Coast area, and Designer KY does fulfills e-frame orders to The South. And Designer IN for the Midwest. And Designer CA for The Western States. That just seems like the relationship has gone from Manufacturer and Distributor to something else, like Fulfillment House and Marketing & Order Taking Mechanism.
I even get the feeling that individual Designer Warehouses log on to E-frame's site, go into the backside of the checkout page of E-frame, and download the orders for the addresses that are in that region to get the fulfillment info. The would seemingly be just a bit more cozy than Manufacturer and Distributor, more like Partner.
I have no problem with Designer even doing such a deal. I have a problem with trying to hide it. On the scale of questionable business practices in the framing industry, it’s actually pretty mild. Imagine one where a vendor, because a customer has reached the last column of distributor pricing, and the customer insists on a greater discount. Since it would be illegal to go further, as it would be a preferential pricing policy, they get around it but giving “marketing and advertising” credits back to the customer. Pretty much this means the customer is buying the material for less than any other distributor. Much less. Heck, the vendor is paying the customer cash to carry their product. They do this to get name recognition and market penetration, while cutting margins. The really bad part comes when it comes time to make up the margin. The same manufacturer will market to framers in a slick fashion. Framers will now pay a higher price. Literally, the extra cash you overpay is being paid directly to the Big Box competition.
So, not only do you complain about Big Boxes hurting biz, but you pay money you do make to a vendor that pays it right to them again. How can you do that?
So what’s my rant? Less’s FYI had even more under the surface than first thought. And secondly, even if this the situation that Designer and Eframe are working it in this fashion, it pales in comparison the how you are getting screwed over by one or two other manufacturers that are perceived as industry leaders. Leading the money right out of your pocket into the pocket of a Big Box.
So, be upset at Designer if you want. But, I suggest getting upset with the people are really doing more harm to your bottom line by subsidizing the Big Boxes you rail against. To me, that's JDLR, or Just Don’t Look Right.
CopSpeak for Just Don’t Look Right.
The FYI Thread seemed to be a hot button topic. After getting a few answers from Designer, things seemed to quiet down, or maybe it was just talked to death. Either way, things seemed to be put to bed.
But I have some nagging open questions, or some things that JDLR, and deserve a revisit.
The other info I got the other day from Designer still stands as more or less correct. But, like most things, if you don’t ask a specific question, then a person does not need to answer it. Right?
So here is how it works. I make an order from e-frame, on e-frame's website, and pay for it.
E-frame orders are then fulfilled directly from Designer a warehouse. E-frame does not stock it, cut it, pack it, or ship it. They collect the money and the initial order, and then hand the info over to Designer.
Here’s the problem. By definition, a distributor distributes. This is not actually happening. A distributor carries stock and inventory, this is part of the distributor pricing level, or orders with frequency and volume.
E-frame is not distributing. Distribution is being made from a Designer location, on an order fulfillment basis. E-frame only acts as an order taking mechanism. This, in itself is not a problem. The problem lies in the fact that this was not forthright, and concealed.
Can you get distributor pricing if you are not distributing? OK, so maybe the Mettle Company is actually doing distribution for the NY and upper East Coast US, and that actually entitles them to Distributor, as I was told.
But, with e-frame orders that do not fall in the Upper East Coast area, and Designer KY does fulfills e-frame orders to The South. And Designer IN for the Midwest. And Designer CA for The Western States. That just seems like the relationship has gone from Manufacturer and Distributor to something else, like Fulfillment House and Marketing & Order Taking Mechanism.
I even get the feeling that individual Designer Warehouses log on to E-frame's site, go into the backside of the checkout page of E-frame, and download the orders for the addresses that are in that region to get the fulfillment info. The would seemingly be just a bit more cozy than Manufacturer and Distributor, more like Partner.
I have no problem with Designer even doing such a deal. I have a problem with trying to hide it. On the scale of questionable business practices in the framing industry, it’s actually pretty mild. Imagine one where a vendor, because a customer has reached the last column of distributor pricing, and the customer insists on a greater discount. Since it would be illegal to go further, as it would be a preferential pricing policy, they get around it but giving “marketing and advertising” credits back to the customer. Pretty much this means the customer is buying the material for less than any other distributor. Much less. Heck, the vendor is paying the customer cash to carry their product. They do this to get name recognition and market penetration, while cutting margins. The really bad part comes when it comes time to make up the margin. The same manufacturer will market to framers in a slick fashion. Framers will now pay a higher price. Literally, the extra cash you overpay is being paid directly to the Big Box competition.
So, not only do you complain about Big Boxes hurting biz, but you pay money you do make to a vendor that pays it right to them again. How can you do that?
So what’s my rant? Less’s FYI had even more under the surface than first thought. And secondly, even if this the situation that Designer and Eframe are working it in this fashion, it pales in comparison the how you are getting screwed over by one or two other manufacturers that are perceived as industry leaders. Leading the money right out of your pocket into the pocket of a Big Box.
So, be upset at Designer if you want. But, I suggest getting upset with the people are really doing more harm to your bottom line by subsidizing the Big Boxes you rail against. To me, that's JDLR, or Just Don’t Look Right.