9:00 a.m. Friday, June 5, 1998
New York, New York
NEC - Tom Burger, Victor Foia, Doug Wonson
Unfinished Business
NEC Status Report on Items from March 1998
Action: NEC Quality Control will test terminals. Update: Refer to Gail Fisher's Report on outcome of tests and procedure for returning faulty Elite and E series terminals.
Action: Gail Fisher will assess
Action: Lingo replaces Promail. Council asked NEC to provide a digital integration and this has not been addressed.
Action: Single terminal for all systems will not be supported due to a number of issues, but primarily the resulting price increase for terminals on the EPRO I and 120
Action: Council concerns were heard. NEC views both the direct and dealer channels critical to their product distribution and market share growth. There is no shift in core philosophy of direct and independent distribution channels.
Action: NEC will monitor NECSI website
Action: NEC will send printout to Maureen.
Action: Info on AT&T as well as Centrex vs. Private ISDN is to come.
Action: NEC will evaluate. A previous subscription program withered and died from lack of interest. They are committed to new s/w releases semi-annually. Dealers must educate clients to budget for software upgrades.
Action: This information will be added to collateral
Action: Concerning faulty software, NEC will accept returns on unopened product, attention Tom Burger.
Action: not confirmed. NEC was aware of a pricing problem with Master Quote that was resolved, but other than that, no price increases have taken place in the past year.
Action: Exists via bulk buys (10+ for EPRO II, 120/25+ on EPRO I
Action: Automation process isn't finished. Not a lot of leads have come in. Server based system will be best method for gathering data.
Action:
New Business
1. MCI Catalog (NEC is still not listed)
Action: There are gaps in MCI contracts. NEC has put issues on table. Clarification sought on how program and implementation process would practically work. Not to discount stage yet. NEC will send out Dear Associate letter on program with participation to be determined by each dealer.
2. NEC Dealer Recruitment Program (market saturation/dilution)
Action: NEC maintains that their database on market size and dealer market share within an area is extensive. If the dealer market share is in evidence, NEC says the intent is to NOT dilute it. NEC will support independent dealers who wish to compete and grow. Dealers have to adapt to the market and size is not a factor necessarily. Client service & value-added are still important. Acquisitions that result in another NEC dealer are beyond NEC's control. However, such organizations will be subject to sanctions if product is purchased in territoryand shipped to a non-authorized sales territory. The NEC Platinum Program is a solution to the concerns of tenured dealers. But serious and significant dealer commitments will be demanded by NEC. NEC clarified that all dealer contracts are initiated in Dallas and cannot be set up by Dealer Managers. Council took exception based upon an incident that appeared otherwise and NEC will investigate.
3. Dealer Certification Concerns
Action: NEC has worked to regionalize training. It is important that dealers avail themselves of the Master Technician Program benefits so that the MT can certify additional technical staff. CD and Challenge Tests will be further developed. A non-certified technician who request NTAC support and receives a "training notice" has 30 days grace period to register in 1st available class on that particular product or application. Distance Learning via Internet is being explored, e.g.: VOLARE - acronym for Virtual On Line Advanced Remote Education. Lab equipment is eligible for co-op dollar funding. There will be an increase in electronic collateral. Job Fair is another effort to introduce fresh resources to labor pool. Finally, due to the increase in advanced software applications and/or integration, there will be an increased need for technical support (both NEC and dealer). Costs for such applications/integration will ultimately need to be passed on to the end-user.
Meeting adjourned at approximately 12:30 p.m.