Advice sought- Company takenover
Discussion
We are sole agents in the U.K for a company in C.Z.
Our company was set up 3 years ago from nothing and turnover curently stands at £1.5 million with growth expected at 30% per anum.
We sell in a very competitive market to both end users (mainly automotive) and distributors.
One of our competitors has bought the company in C.Z. and has started to raise prices to us inthe U.K. making us slowly uncompetitive. We have a contract with the C.Z. company which states products can only be sold by our company in to the U.K.
Where do we stand? I/we have worked long and hard to make this company what it is.-I am worried.
Any advice?
The new owners have NOT contacted us!!since takeover in December 04 Should I contact them or is this a sign of weakness??
Our company was set up 3 years ago from nothing and turnover curently stands at £1.5 million with growth expected at 30% per anum.
We sell in a very competitive market to both end users (mainly automotive) and distributors.
One of our competitors has bought the company in C.Z. and has started to raise prices to us inthe U.K. making us slowly uncompetitive. We have a contract with the C.Z. company which states products can only be sold by our company in to the U.K.
Where do we stand? I/we have worked long and hard to make this company what it is.-I am worried.
Any advice?
The new owners have NOT contacted us!!since takeover in December 04 Should I contact them or is this a sign of weakness??
I'd say definitely contact them. You can't be in a position to do anything or make any decisions until you have all the facts. Meanwhile I am guessing you do other things than sell the item they make, so work on minimising the exposure you have from their actions which will give them cause for thought on the effect they are having on what muust be a lucrative channel to market.
first find out what they are up to casually enquiring into their plans for the future and letting them think you value their relationship - possibly even letting on that you are diversifying. once you have the facts you can plan where to go next.
first find out what they are up to casually enquiring into their plans for the future and letting them think you value their relationship - possibly even letting on that you are diversifying. once you have the facts you can plan where to go next.
Firstly, I think you’ll find that it would be impossible to enforce an “exclusive agency” agreement – because of EU competition Law. Secondly, I think I'd jump on a plane and find out what their intentions are – and bear in mind they may not be honest with you. They may be planning to sell direct in the UK in order to achieve better margins.
I’d also talk to other agencies in other countries to see if they’ve got any inside info. Lastly, make contact with other suppliers of similar stuff, to see if you can find any alternative principals in case the worst happens.
I’d also talk to other agencies in other countries to see if they’ve got any inside info. Lastly, make contact with other suppliers of similar stuff, to see if you can find any alternative principals in case the worst happens.
You must go and see them!
With the time and money you've invested so far, you can't afford to simply watch what how it develops.
Is your competitor, and now supplier, also selling their original products over here to your customers too?
Finally are you able to find an alternative supplier just in case it gets unworkable?
With the turnover you suggest that you are achieving over here, you could give very worthwhile business to another manufacturer, especially if you give good service too!
I'm amazed that your supplier hasn't made contact with you since the takeover....
With the time and money you've invested so far, you can't afford to simply watch what how it develops.
Is your competitor, and now supplier, also selling their original products over here to your customers too?
Finally are you able to find an alternative supplier just in case it gets unworkable?
With the turnover you suggest that you are achieving over here, you could give very worthwhile business to another manufacturer, especially if you give good service too!
I'm amazed that your supplier hasn't made contact with you since the takeover....
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