Hearthlist Digest #224 - Saturday, November 7, 1998
 
Todays manufactuers
  by <[email protected]>
Response to Jerry (above)
  by "Craig Issod" <[email protected]>
 

(back)
Subject: Todays manufactuers
From: [email protected]
Date: Sat, 7 Nov 1998 13:14:19 -0500 (EST)
 
There seems to be a very real problem in our industry today with a
manufacturer who has made several purchases of other manufactuers and now
have huge conglomerates that have taken over a large share of the
manufacturing of the products we retail in the hearth industry today. In
partcular is a company that is headquartered outside of the USA.
 
The problems involve
 
#1 Failure to honor dealership agreements that were in force with the
company bought out
 
#2 Decisions of top mangagement to not honor freight terms as advertises
 
#3 Pricing that changes from published price sheets to invoices mailed
 
#4 Failure of the manufactuer to properly submit floor planning invoices to
floor planning comapny and then refusing to straighten out the problem.
 
At this time we have one major manufactuer in the industry (cast iron &
steel, fireplaces, gas stoves, gas logs, wood stoves, markets to both mass
merchantsd through one division and to the specialty market through another
division) whois wrecking havoc upon many dealers. I feel that this fact
needs to be publicized and this industry needs to make a stance against this
conglomerate who has no desire to honor their agreements.
 
I am unsure if the list will accept a entry such as this, but after
conversations over the last few weeks with other retailers this company
presents a very real problem to our industry and the health of the retailers.
 
Jerry Isenhour
 
 
 
 

(back)
Subject: Response to Jerry (above)
From: Craig Issod <[email protected]>
Date: Sat, 7 Nov 1998 13:25:25 -0500 (EST)
 
Thanks for the post - and we surely have no reason for it not to be put out
on the list for discussion.
 
Those that have been on this list for 2 years or more remember that this
exact subject and manufacturer was discussed at length at that time. Jerry
and others can find those old discussions in the archives and also in some
articles in the clubhouse...http://hearth.com/news/club.html
 
After hashing the subject around, we came to the conclusion that it is
within each manufacturers (and retailers) rights to make whatever decisions
that they like. If you do not like the company or their policies, you can
vote with your pocketbook - just as they do with theirs.
 
CFM/Majestic has made no secret of their policies - in fact, to their
credit, they are out front about it. My rep has told me that pretty much
"anything goes" - that is, there is no such thing as territory for us. This
is the cold and hard reality. As Microsoft says in their current trial -
"No law says we can't be ruthless and competitive" - which is very true. Of
course, no law says I have to buy Microsoft products and therefore I am the
proud owner of none of them.
 
I don't want to rehash the same old subjects too much, however if anyone
has any new points of view or experiences to share, it would be great.
 
By the way, the entire manufacturing part of this industry has been heading
in the same direction of consolidation, other channels, etc. - some of it
is due to the lack of qualified specialty retailers who can do a good job
for them. Products will find their markets - that's the way of the world.
 
 
 
 
------------------------------------------------------
Craig Issod             HearthNet at http://www.hearth.com
[email protected]    Everything your Hearth Desires
------------------------------------------------------
Buddha says "avoid error"
------------------------------------------------------