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Parts Dealers Going to Credit Card Only no more Terms...

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Crimestopper
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Parts Dealers Going to Credit Card Only no more Terms...

Postby Crimestopper » Tue Mar 28, 2006 7:04 pm

Did anyone get a call from Motorola saying that all parts dealers will be going to C.O.D., or credit card ? How will this affect us if we need to warranty out product?

Thanks
Steve

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Re: Parts Dealers Going to Credit Card Only no more Terms...

Postby kc7gr » Wed Mar 29, 2006 8:40 am

Crimestopper wrote:Did anyone get a call from Motorola saying that all parts dealers will be going to C.O.D., or credit card ? How will this affect us if we need to warranty out product?

Thanks
Steve


I just got off the line with Moto Parts. This rumor is, unfortunately, very true, at least for some 2,500 or so accounts.

I have found out that I'm one of those who will be affected. It was done, according to the fellow I spoke with, because of problems collecting payments from the affected areas. I'm also told that the selection was "completely random."

I'm not taking this sitting down. I'm going to do whatever I can to keep my account just where it is. Failing that, well... if Moto is hell-bent on pissing off its customers, this is just one more nail in the coffin.

Bob Galvin must be reaching about 23,000 RPM by now...

Keep the peace(es).
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rodell
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Postby rodell » Wed Mar 29, 2006 9:07 am

I was having some maintenance work done on my account on Monday of this week (address change) and the rep said "oh, you're already a credit card customer". I asked him about why he said that and he said there was a "major shift" to credit card accounts.

He also told me he had several calls where customers could not see the on-line RSS licensing links (I couldn't, either, thought it was because of the maintenance.) I opened a case, anyway.

Rob
Northeast Massachusetts

Crimestopper
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Postby Crimestopper » Wed Mar 29, 2006 11:18 am

What a joke.....I called up my credit rep at Motorola, and even offered to pay $2,000.00 upfront so they can keep an open balance on upcoming purchases. Mind you I have a zero balance with terms Under $2,000. Guess what they said, NO. Now warranty will be a major issue if I have to give a credit card to a customer rep every time my customers have a warranty issue. I don't care so much about paying for parts on COD or CC, but why can't they take funds from us and keep an open account and deduct from that.

So I guess they are doing this to save money. I can understand if someone goes past net 30, then they have to make a phone call to collect. Like I said its not an issue for a parts purchase, but it will be a major pain in the butt, if I have to give a credit card every time I call in, to warranty a battery or accessory. They won't charge our credit card for warranty unless it is out of warranty which is fine. But they still will not keep a credit card on file, or take a check to be applied for credit. THink about it, if Motorola accepted a prepayment for credit terms such as $2,000 X 3,000 parts dealers, they would be able to make some big cash on interest alone. But NO, they will not accept extra money to be applied to our account.

I can understand why Motorola might be doing this. However, it would be nice if we can maybe prepay for our account, or giving us the opprtunity to give us a quick pay discount like radio dealers get. Such as an electronic fund transfer. I strongly feel that warranty will be a major issue in my book, and I'm not to sure if there is an incentive to go to bat for Motorola product since this will now be a MAJOR PAIN IN THE #@*.
Last edited by Crimestopper on Wed Mar 29, 2006 1:59 pm, edited 1 time in total.

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Postby tvsjr » Wed Mar 29, 2006 1:58 pm

Good for you... get a Kenwood dealership (no RELM, please!) and start selling radios from a company that will work with you to your customers. Motorola keeps pissing on their employees, their dealers, and their customers... I don't care who you are or how much money you have, such behavior leads to one place - bankruptcy court.

Crimestopper
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Postby Crimestopper » Wed Mar 29, 2006 2:15 pm

Is it hard to become a Kenwood Dealer? I currently work with a ton of Public Safety, and and other Govt agencies. What about Tait, Thales, or even BK? Since IWCE is comming up, I think it is time to look at other options for my customers. I'm in the US, but I sell out of the country as well. Any input would be great.

tvsjr
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Postby tvsjr » Wed Mar 29, 2006 2:33 pm

I know they're all significantly easier than Moto.

Stan, USPSS here on the board, is a gov't sales poo-bah. Maybe he could give you some pointers?

I'm not a dealer, myself... I just have a good friend who is one (Moto + KW).

DJP126
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Postby DJP126 » Wed Mar 29, 2006 3:11 pm

Don't you all mean C.T.D.I.?
Dave

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escomm
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Postby escomm » Wed Mar 29, 2006 3:22 pm

If you buy enough you can become a Kenwood dealer. A (former) customer of mine wanted to go to Kenwood and needed to buy a new fleet of radios. Kenwood made the end customer a dealer so they could get better pricing.

I feel bad for you guys that are getting the shaft from /\/\, I can't help but wonder what is on the horizon for dealers like me.

Crimestopper
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Postby Crimestopper » Wed Mar 29, 2006 9:37 pm

Does Kenwood have a program like Impact 21? I'm still a Motorola fan but my support for the prodcut line has just dropped.

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Motorola is killing Net-30 for EVERYONE...

Postby kc7gr » Fri Mar 31, 2006 9:09 pm

Fellow Batboarders.

I had a voicemail today from Moto's credit department, in reference to a case I opened asking that I be allowed to retain Net-30 as one of my payment options. Said voicemail revealed some interesting tidbits as follows.

(1) The credit rating and/or payment history of the specific customer involved in this sweep is 155% IRRELEVANT. The change has nothing whatsoever to do with your payment history, period.

(2) The rep said that two choices came down at the corporate level: Raise parts and radio prices across the board, or do away with Net-30 terms for (eventually) EVERYONE -- As in ALL Motorola customers.

No one wanted to raise prices, so the decision was made to, progressively, get rid of Net-whatever terms completely. I'm told that my account is in the "second wave" of accounts affected by this change.

I'm also told that, eventually, ALL Motorola customers will be converted to credit card or COD terms. There will be NO Net-30 or similar 'terms' accounts left. None. Not even at the federal government level, supposedly.

So there you have it. Nothing sinister per se, just Ed Zander and his cronies proving that they can still be consummately greedy asswipes.

Keep the peace(es).
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escomm
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Postby escomm » Fri Mar 31, 2006 11:02 pm

I wonder how low of a processing rate Moto will get for CCs. I can't imagine it's much below 1.7% though. Oh well, guess I will be getting a ton of free Southwest Airlines vouchers in that case.

Crimestopper
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Postby Crimestopper » Sat Apr 01, 2006 10:54 am

correct me if I'm wrong but doesnt Motorola do a price increase every year around 4% across the board on accessories?

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Postby Zap » Sat Apr 01, 2006 4:58 pm

Perhaps it's an across the board policy because /\/\oto knows the whole world is about to end, and doesn't want the hassle of trying to collect when it does.

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Postby RADIOMAN2002 » Mon Apr 03, 2006 9:09 am

I hate to say it but NEVER believe what Moto says in official reports. I suspect its a lot easier to trace somebody with a CC account than try and run down persons without. Now maybe they are going to CC and COD to save money, but I doubt the Feds are going to look too favorably upon any vendor with those kinds of terms. I have dropped all doings with Moto, now sell Kenwood and Vertex. Personnaly, Motorola is in it's last throws, I give them another 2 years before they are out of the 2-way radio business altogether. They aren't making the money they used to, now with Nexthell as their partner. They are probably going to go the way of GE/Ericson . Major public safety accounts and their always failing 911 dispatch systems.

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..

Postby batdude » Mon Apr 03, 2006 1:36 pm

net 30 (60/90) terms benefit one person: the middle man.

i have no problems with their decision to convert over to direct payment.

you would not believe how many major customers of a business are routinely delinquent - AND UNPENALIZED - for missing their net 30/60/90 terms.

if i was a biz, no way in hell would i accept anything past NET 10, with SEVERE penalties for failing to meet terms...like 50%.

screw it - get a PO and a company CC... problem solved.



d
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escomm
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Postby escomm » Mon Apr 03, 2006 1:45 pm

After contemplating it more, I don't think that /\/\ will carry these kind of terms over to its government accounts or resellers. I have done business with numerous local and state level agencies and none of them pay up front for sizeable orders. Individual purchasing agents may be allotted a credit card for emergency purchases, but the bureaucracy is structured such that an invoice must be generated and sent to accounts payable for review and payment issuance.

Resellers also often place sizeable orders, and it becomes cost-prohibitive for /\/\ to process so many large transactions on a credit or COD only basis.

Perhaps /\/\ is just doing away with selling parts on a small-time basis to end users and will be encouraging them to find a reseller or dealer that can service such small-dollar accounts.

Crimestopper
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Postby Crimestopper » Tue Apr 04, 2006 5:16 pm

Nice thought on the Credit card purchase with the govt...HOWEVER, I have quite a few govt customers that have no problem making regular purchases weekly with their $10,000 credit card per purchase. Nevertheless if the order is over $10,000 then they will issue a PO instead of using a credit card. I don't think I"m a small parts seller since I average around $10,000 in parts each month from Motorola. Last month we bought over $62,000 in parts alone. We mainly focus on parts since we are not a radius or full line dealer. Snif Snif.....Do I smell two stepping?

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escomm
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Postby escomm » Tue Apr 04, 2006 5:49 pm

Well I don't know what much to say then. It certainly doesn't make sense for /\/\ to take you off terms with that kind of output.

If you are doing that kind of parts business though, why aren't you selling radios?


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