A large computer company [LCC] wants to bid on a government contract. One of the items specified on the bid was the software we manufacture, by brand name. Remember that, it will come into play later.
So a man, let's call him Buddy, from LCC's purchasing department called us to get pricing. I gave him the retail price since I didn't yet know he wanted to resell the software. He mentioned a desire to get reseller pricing, so I checked our database and saw that LCC was already listed as a reseller. We had made a sale of around $500 to them about four years ago and that was it.
Since they hadn't filled out a credit application and hadn't bought much, we had them listed as "casual" resellers. Casual resellers get a smaller dealer discount and must pre-pay by credit card before we ship. Most casual resellers are happy enough with that since they still make a little money and don't have to go through as much hassle as our full-service higher-volume resellers.
Buddy, however, found the discount too small and was appalled that we wouldn't just give LCC net-30 terms (in which we ship, send an invoice and give them 30 days to pay). I explained those were the terms and Buddy came back with the fact that his company was Very Big and the purchasing department wouldn't let him buy anything from the same company twice with a credit card (the sale four years ago was a credit card sale).
I expressed my sympathy (as only I can) that LCC wouldn't be able to work with us and started to wish them well, when Buddy interrupted and demanded to talk to "someone" who could be more helpful.
That "someone" was Mark, who is our dealer liaison. I filled Mark in that LCC was demanding net-30 terms and lobbed Buddy over to him. He was on the phone for about 30 minutes and I heard him raise his voice a couple of times, although he didn't lose his cool. Naturally he filled me in later with some of Buddy's choice phrases and his own replies:
Buddy: [Not giving us net-30 terms] is just unheard of. I've never dealt with anything so ridiculous. We are a Very Big Company and that's not how we buy things.
Mark: I understand if you don't wish to prepay, but we do require it.
Buddy: I told you that we don't have the means to prepay.
Mark: So you're saying that nobody at you Very Big Company has a company credit card or access to a company checking account?
Buddy couldn't answer that one and changed tactics...
Buddy: I've already spoken to your competition and they will work with me.
Mark [remembering that the bid specified the software we manufacture by brand name]: And which competitor would that be?
Again, Buddy had no answer and went down another road...
Buddy: Is there anyplace else which sells your software?
Mark gave him the names of three of our other resellers and informed him that they may or may not be willing to offer net-30 terms. Just for laughs one of the three was Mark's wife, who is an independent hardware/software dealer happens to be one of our better resellers.
The other two were hardware manufacturers with whom Buddy's company likely already had net-30 terms for reselling hardware, but weren't likely going to pass along their dealer discount for our software. Why should they?
We have no idea what happened when Buddy called the two hardware manufacturers. We only know that he didn't buy from them (probably because their prices were higher than ours, due to not passing along their discounts).
We do know what happened when he called Mark's wife because Buddy spent a lot of time telling her that Mark was an unreasonable jerk. Mark's wife could barely contain her laughter until the end of the phone call and didn't wait to call Mark up and fill him in.
As it turned out Mark's wife DID offer LCC net-30 terms, but was not willing to give up any of her reseller discount; she saw no reason not to charge them full retail.
So what happened?
LCC bought from us...prepaid with a credit card.
I guess it WAS possible.
So a man, let's call him Buddy, from LCC's purchasing department called us to get pricing. I gave him the retail price since I didn't yet know he wanted to resell the software. He mentioned a desire to get reseller pricing, so I checked our database and saw that LCC was already listed as a reseller. We had made a sale of around $500 to them about four years ago and that was it.
Since they hadn't filled out a credit application and hadn't bought much, we had them listed as "casual" resellers. Casual resellers get a smaller dealer discount and must pre-pay by credit card before we ship. Most casual resellers are happy enough with that since they still make a little money and don't have to go through as much hassle as our full-service higher-volume resellers.
Buddy, however, found the discount too small and was appalled that we wouldn't just give LCC net-30 terms (in which we ship, send an invoice and give them 30 days to pay). I explained those were the terms and Buddy came back with the fact that his company was Very Big and the purchasing department wouldn't let him buy anything from the same company twice with a credit card (the sale four years ago was a credit card sale).
I expressed my sympathy (as only I can) that LCC wouldn't be able to work with us and started to wish them well, when Buddy interrupted and demanded to talk to "someone" who could be more helpful.
That "someone" was Mark, who is our dealer liaison. I filled Mark in that LCC was demanding net-30 terms and lobbed Buddy over to him. He was on the phone for about 30 minutes and I heard him raise his voice a couple of times, although he didn't lose his cool. Naturally he filled me in later with some of Buddy's choice phrases and his own replies:
Buddy: [Not giving us net-30 terms] is just unheard of. I've never dealt with anything so ridiculous. We are a Very Big Company and that's not how we buy things.
Mark: I understand if you don't wish to prepay, but we do require it.
Buddy: I told you that we don't have the means to prepay.
Mark: So you're saying that nobody at you Very Big Company has a company credit card or access to a company checking account?
Buddy couldn't answer that one and changed tactics...
Buddy: I've already spoken to your competition and they will work with me.
Mark [remembering that the bid specified the software we manufacture by brand name]: And which competitor would that be?
Again, Buddy had no answer and went down another road...
Buddy: Is there anyplace else which sells your software?
Mark gave him the names of three of our other resellers and informed him that they may or may not be willing to offer net-30 terms. Just for laughs one of the three was Mark's wife, who is an independent hardware/software dealer happens to be one of our better resellers.
The other two were hardware manufacturers with whom Buddy's company likely already had net-30 terms for reselling hardware, but weren't likely going to pass along their dealer discount for our software. Why should they?
We have no idea what happened when Buddy called the two hardware manufacturers. We only know that he didn't buy from them (probably because their prices were higher than ours, due to not passing along their discounts).
We do know what happened when he called Mark's wife because Buddy spent a lot of time telling her that Mark was an unreasonable jerk. Mark's wife could barely contain her laughter until the end of the phone call and didn't wait to call Mark up and fill him in.

As it turned out Mark's wife DID offer LCC net-30 terms, but was not willing to give up any of her reseller discount; she saw no reason not to charge them full retail.
So what happened?
LCC bought from us...prepaid with a credit card.

I guess it WAS possible.
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