8:50 a.m.

Members Present: Maureen, Vito, Phil, Steve, Charlie Eicher, Mark Lynn, Art Weinrach, Greg Osler,Suzannne Sherrod, and new council member-elect, Charlie Eazor.

Adoption of Minutes from July 25, 1999

Steve moved to adopt. Motion passed.

Financial Report Vito

Mark and Vito will talk to Datacomm Warranty regarding slow payment and upcoming contract. Steve moved to approve Financial Report. Motion Passed.

Unfinished Business

• Shipping Issues - update Art is getting double talk back from Cozzolino and Anderson. Furthermore Doug Wonson stated to Art that "NEC is not a warehouse and that dealers should be stocking more". NEC says that they will have means for dealers to get access to order status via web as well as dealer emails regarding orders. Art found that pre-payment did not improve shipping but is a better situation for dealers. Dealers should note that NEC contracts state NEC will ship in 30 days. Therefore product ordered but not received by dealer in 30 days is contract violation by NEC.

Platinum dealers are very uncomfortable with being NEC exclusive dealers.

• E-commerce for Key Systems - Discussion...viability is more for multi-site locations. Greg suggested the multi-location agreement has to be priced favorably to encourage sales and at least give a local dealer the after market business. Tier 1 - Tier 2 pricing may be a solution. High cost areas like Chicago can mean that installing dealer may be at break even or loss on the job.

If e-commerce is defined as completing a business transaction via the web then it is unlikely that businesses will buy a telephone system over the Internet. Discussion suspended for now.

1. New Business Partners - Technology Leasing Services (do we admit a second Business Partner for Leasing?) - Council rejected.

Greg Osler moved to renew Datacomm Warranty for a year. Motion passed.

KiwiComputel - NECSI partner to provide Q-Master ACD product

Motion by Steve: Member of Council will volunteer to test the Q-Master as first step toward acceptance of Kiwitel as business partner. Motion passed.

1. NEC Sales Award Program - issue of NEC obtaining dealer client database information and compensating sales representatives directly. Vito moves we discuss this item with NEC to the effect that NEC has a different program with the Associate (as opposed to direct sales staff compensation). Motion passed.

1. NEC Compensation to dealers - Council Members to come prepared with examples of their own or other Member companies' unrecoverable time and costs on Elite/EliteMail softkeys (including troubleshooting and in-the-field software fixes).

Greg stated that NEC is giving dealers software fix plus monetary compensation. Problem systems not on 3000 series software will also get free software. Fix for EliteMail takes about half an hour.

Mark: it is not acceptable for dealers to have to hear about faulty product, and for dealers to be installing product that NEC knows is defective. There has to be a threshold that when exceeded alerts NEC that there is a wide-spread problem.

• Marketing Committee - Mark

Mark will try to get a preview of NECs nationwide marketing plan that NECSI can bring to dealers. The video done last year has been successful in securing NEC business for Council Members whose companies are using it. Customization is an option but not necessary.

• Multi-Location Committee - Steve

No report.

• New Customer Service Committee - Maureen, Steve, Vito & Phil

Committee meeting on October 18 at 8 a.m. to meet with Victor Foia.

• Membership Committee - Mark
  • Action Plan for 2000 Membership campaign

Mark distributed last letter. NECSI does not provide web page design, only free access. Membership is standing at 154. RCR will begin solicitation for membership renewals and first time membership in mid-November. First time members who pay by Dec. 31st get the extra month and free listing on web site. Listing costs for multi-location offices. Greg moved $300 ($435.00 for for main location identified in web search. Additional locations identified in web search will cost $100.00 each ($150.00 Canadian). Additional locations are defined as "bricks and mortar offices. Motion passed.

• Training Committee - Mark, Phil

NEC will produce matrix for products and required training certification. NEC will identify two or three courses that will be required for NEAX Express certification. Materials and tests to be obtained by dealers via third party (TBA). If NEAX 2000 certified technician has proof of passing the three NT tests, NEC will certify on NEAX Express in an afternoon.

• Recruiting Program Committee - Maureen, Steve

Steve's report is printed in detail in Fall issue of Crosstalk Newsletter. Post graduating class schedules on the nec-si.com. The students can also post their resumes on the NEC Job Fair. Best for dealer to get involved and connected with the technical school, college and recruit in advance.

• NEAX 2400 Committee - Charlie E?

NEC is simply not supporting dealer associates in the 2400 market. NEC dealer is in a "hole" at the outset of the sales process and price is often the only way out. Viewpoint in the industry is that national companies (Fairchild, Sprint, etc.) are simply using the NEAX 2400 to sell Nortel, Lucent, Fujitsu, etc. No one of any size has chosen the NEAX 2400 as their primary switch. Unfortunately, as a result the NEAX 2400 lacks credibility. Outside the school, hospital and casino vertical markets, the NEAX 2400 is not a player. A major national company must obligate themselves to the Platinum Program. Vito moved to add to NEC agenda for October 18th. Motion passed.

• NEAX 2000 Committee - Greg

NEAX IVS2 is announced. Distinguishing fact is the "philosophy" of the system is basic package at 24 port, or 48...dealer buys the software application required at size required. Auto quote configuration will be a necessity. Good thing is one cabinet, one software and an old 2000 can be retrofitted. Centralized E911 is not supported and forces a small network sale to go to a NEAX 2400 that puts the dealer at a disadvantage. Mitel is a serious concern with respect to price and buying back marketshare. What is NEC doing corporately to address Mitel's effort to survive?

Mark moves that we confront NEC at meeting on the situation and what NEC is going to do about other manufacturers such as Mitel buying business and why aren't RBOCs carrying the NEAX 2000?

• Key System Committee - No Report

There is no E911 on the Elite via E&M tie lines.

• Web site - Steve

Executive Summary Report was provided to Council. Fourth highest hit is NEC product (accessed by potential buyers). NEC used to have a very good link to nec-si.com and now we are getting zero traffic. Also NECs web page is un-friendly to potential buyers as far as finding out who vendors are-Dealer Associates represent 71% of NECs business.

• Security of Members Forum and Discussion Area - hackers. A firewall is necessary.

• Crosstalk - Suzanne
  • Next Copy Deadline is January 7th, 2000
  • Current Issue delayed due to delay by NEC to get ad copy to publisher.

4. Election of Officers for 2000 - President: Maureen Treasurer: Vito Vice-President: Mark ; Secretary- Suzanne.

5. Review of NEC Agenda - Add strategic/philosophical issues regarding NEC position and product to the agenda and communicate our extreme disappointment with NECs lack of respect toward NECSI scheduled meeting. Council members have given up personal time on behalf of the dealer organization to which we are accountable. What value? Council will speak as one on the fundamental issues that NEC dealers are facing and ask what NEC is going to do to improve the situation. The questions for NEC are: 1. How NEC perceives its dealer channel; 2. What is NEC doing toward getting their products back into the market.

Meeting adjourned at 1:00 p.m.