NECSI Minutes of Annual Meeting
Wednesday,
April 25, 2001 2:00 Noon to 4:00PM
Hyatt
Regency – Cumberland Room, Dallas, Texas
2:15 p.m..
Roll Call and Introduction of Council Members Sean
Campbell, Secretary
Charlie
Eicher, Greg Osler, Ron Brennan, Charlie Eazor, Mark Lynn, Sean Campbell,
Gordon Maconi, Ed Miksell, Gary Laxdal, Maureen Gaynor (absent)
Proof and Notice of Meeting Sean
Campbell, Secretary
Posted to nec-si.com
- March 2001
Email broadcast - March 2001
Crosstalk News - Winter Issue 2001
Honorees: Vito Marrone,
Phil Maulding, Steve Autor, Suzanne Sherrod where acknowledged for their
dedicated service to the Council in previous years and presented with a
plaque..
Mark Lynn first made a statement regarding the new direction NECSI took with NEC in the January meeting. NEC as a partner has previously built a relationship with associate focused on pushing product to Associate warehouse shelves. Increasing market share was historically accomplished by adding more dealers and creating large bulk purchase discount programs. While promotional programs are viewed in a positive light; NECSI suggested NEC redirect its energies to growing the existing dealers to market share. NECSI asked NEC to treat the relationship with Associate’s like we would treat our own inside Sales & Marketing groups.
Focus marketing/sales to end users rather than associates (like the RFP guide last year
Re-direct Account Managers to
Assist dealer in building a stronger sales force
Training associate sales force
Bring in leads and work with the associate sales force to sell
Institute a lead generation program
Expand the NEC Sales academy program
Create vertical market messages
Generally change the attitude from PUSHING PRODUCT to PULLING IN CUSTOMERS
Last year NECSI recommended to NEC that the Advantage Invitational focus on business development. This year NECSI suggests the invitation focus on Vertical Markets and NEC working with Associate to increase sales to customers.
Treasurer’s Report (Charlie
Eazor for ) Maureen Gaynor, Treasurer
NECSI is in good financial shape with a surplus from 2000. First quarter 2001 revealed increased revenue and reduced expenses leading to an anticipated surplus at year-end. Copies of the budget may be requested via www.nec-si.com.
Adoption of 2000 Budget
Lead Generation – Mark Lynn
A new lead generation program is to be unveiled at the ‘Advantage Invitational’.
Vertical Market Program
A new committee has been formed
to work with NEC on identifying vertical markets, which the NECSI members would
like to address
NECSI Annual
Meeting
April 25, 2001
Dallas, Texas
Page 2
Alternate channels – Sean Campbell
Last year’s minutes included under Member/Forum Discussion; Concerns were tabled regarding web selling at wholesale prices—this helps no one: A year later the concern is the same.
Wholesale Distribution Agreements (formerly VAR
Agreement)
According to NEC a ‘VAR/Wholesale Distributor’ may appoint ‘Authorized Resellers’ subject to approval by NEC. The approval process is the same as for Associate’s with the exception of financial issues. Therefore NEC ‘Authorized Resellers’ must maintain inventory, have trained technical staff and be able to provide on-site service with-in two hours of their office location.
· Several dealers from the floor pointed out that NEC has been advised of actions breaching these agreements several times during the past year. The real problem here is that NEC has displayed no interest in curtailing these actions or imposing penalties when the agreements are broken. The floor suggested NEC employ a three-strike concept. For example
1. First offense dollars won’t apply to dealer’s annual sales (the slap of the wrist).
2. Forfeiture of Coop funds and reduction of authorized area
3. Termination of Distributorship.
· The floor stated that several NEC dealers had engaged in programs of mailing into non-authorized geographical area (authorizations according to NEC’s dealer locator). Offered predatory pricing directly to customers undermining the ability of the local dealers to make sufficient margin to continue providing good local service – not to mention staying in business. NEC continues to deny knowledge of these activities.
· A MOTION was tabled directing the NECSI dealer council to create a procedure for terminating NECSI memberships of dealers who are determined to be selling out of their authorized geographical area more than once
o Steps to termination
§ Right to cure, opportunity to respond
§ Terminate membership
o MOTION PASSED
New NEC equipment available via the Internet
Basically the same issues covered in the Wholesale Distribution agreement apply to the VAR/WEB sales category.
New Business
· Selling out of area complaints (addressed in the Alternate channels report)
· The idea of creating non-competing Associate Roundtable was introduced. The Floor voted in favor of the council looking into creating such roundtables.
· GSA? Is the program open to all dealers or not? The dealer council will determine the status of these programs and report back to the membership.
· What is happening with Nitsuko? The membership expressed a concern regarding used equipment brokers offering Nitsuko dealer programs. According to NEC the Nitsuko dealer program is structured much like NEC’s.
· EliteMail ongoing Warranty issues
o NEC tech support does not resolve problems
o Extremely high ‘Out of Warranty’ repair cost
o NEC always claims no one else is experiencing the problem
o Why doesn’t NEC extend the warranty on these obviously flawed products
· Tech Support – If NEC feels good about charging for Tokens, why don’t they also offer reciprocal compensation to cover the cost of warranty service on these problematic products.
NECSI Annual
Meeting
April 25, 2001
Dallas, Texas
Page 2
·
NEC places products
on engineering hold without informing the Associates. CSR takes orders and the
part just does not ship, when calling for status we learn the part is on hold.
Can NEC devise some method of keeping Associates apprised of any delays
·
Ben Steigler
suggested that the NECSI council consider holding the annual meeting via
Webcast so more dealers could attend.
Meeting adjourned at 3:45 p.m.
On behalf of NECSI
Members, the Dealer Council expresses sincere thanks to:
Our sponsor NEC Leasing
For their hospitality and support of the NECSI Annual Meeting!