NECSI Board of Directors Meeting  - Thursday, June 24, 2004 – Dallas, TX

 

Attendance – Barry Simons, Greg Osler, Lawrence Sosna, Steve Autor, Mark

                      Duckworth, Sheldon Allen, Gary Laxdal.  Not attending: Steve Batista, Chris Jackson

 

Motion by G. Osler to approve the budget and expenses to date.  Motion seconded by Mark Duckworth.

 

Discussed NEC distribution.  Concern expressed allowing smaller dealers being handed over to 2nd tier distribution.  M.Duckworth – These dealers do less than $100k per year.  NEC will look to replace the market penetration with additional dealers.  This can leave a market saturated with dealers.  These small dealers remaining on board will take individual deals away from Associates backing the products and making their numbers.

 

Verizon – Selling excess inventories to Source

            This has negatively impacted the market for new systems.

            Will bring this up during the discussion with NEC.

 

Univerge – What is the current status? We appreciate the fact that NEC has not had a full fledged release until the product is ready. With relation to the product, the pricing model appears not to be competitive with the CISCO IP offering.  Can NEC detail their on going support for this product…how…when?  Commission agreement for dealers? 

Can the system be ordered, NON BUNDLEDED ?

 

Backorders – Dealers would like some heads up to backorders.

ETA on products that are not available.

 

Why wouldn’t NEC model production based on Dealer profiles and internal historical data?

 

Reliability of products, Quality control, complete testing of all products.

 

Marketing letters and/or contacts of any sort is fine with the Associate channel so long as;

1)      Discussed with the NECSI board first

2)      The Dealer is being promoted in the contact, NOT BNS! (very similar to NEC leasing contacting Associates regarding expiration of agreements)

 

NECSI would like to provide a backup plan for assisting our dealers with backorder issues.  We would like to propose a broadcast mechanism on our website to allow an Associate in need to query the NECSI group to search for emergency product they may not be able to get from NEC.

 

Can/will NEC make all NEC products across the board available to the Associates?

 

For discussion in the next conference call;  Re-evaluate our groups needs in relation to RCR.  Will Steve Autor continue website admin? Lawrence Sosna to discuss a unique financing product?  Plausibility of purchasing Buyer Zone leads for the NECSI group?

Place a NECSI reference list on the web site.

Update on AVST – Sheldon to address with them.

Gordon to come up with a form to work from.

Article in next news letter on the importance of accurate forecasts.