Mfg Rep - Conflict of Interest

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Subject: Mfg Rep - Conflict of Interest Am I the o... - Aug 01, 2003 by

NOPE I disagree. It all depends on the Rep Company you are u... - Aug 04, 2003 by CAL

On one hand, your suspicion is reasonable. Worst case, mayb... - Aug 04, 2003 by davef

Yes it is a conflict of interest. If the rep in question is ... - Aug 06, 2003 by Steven

> Yes it is a conflict of interest. If the rep in > ... - Aug 06, 2003 by severs

Anonymous

#25330

Mfg Rep - Conflict of Interest | 1 August, 2003

Subject: Mfg Rep - Conflict of Interest

Am I the only person who believes it is a conflict of interest for a manufacturers representative to also be representing a contract manufacturer? Especially since they manage registrations and dictate pricing to suit their personal needs. Granted there are non-disclosure forms, but I guarantee there is alot of whispering going on in our industry. Your opinions please!

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CAL

#25339

Mfg Rep - Conflict of Interest | 4 August, 2003

NOPE I disagree. It all depends on the Rep Company you are useing. Just as with anything some are good and some are bad....and this industry is small enough that "whispering" goes on regardless of the product or services being supplied. Is there more detail to your complaint/conflict?

I am not paranoid in that sense as I know the trusted ones vs. nontrusted ones.

cal

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davef

#25344

Mfg Rep - Conflict of Interest | 4 August, 2003

On one hand, your suspicion is reasonable. Worst case, maybe you could workout an agreement that would lessen those concerns, like conducting price negotiations with the equipment supplier directly.

While our suppliers sign a nondisclosure form, we surely wouldn�t bet the farm on a decision that hinged on the effectiveness for that form solely to protect our interests.

On the other hand, you have to respect someone that�s out working to stay plugged-in in a very tough economy. With a firm grasp on the obvious, electronic product sales has been hammered over the past three years. So, we�d respect a sales-type that is honest and up-front about his / her representation relationships and be willing to discuss potential conflicts.

Continuing on this latter point, you have to believe that the principals of this sales-type have concerns similar to yours. What did they workout?

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Steven

#25381

Mfg Rep - Conflict of Interest | 6 August, 2003

Yes it is a conflict of interest. If the rep in question is also calling on other contract Assembly houses. If the rep is not calling on other Ca's then I would say no.

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severs

#25382

Mfg Rep - Conflict of Interest | 6 August, 2003

> Yes it is a conflict of interest. If the rep in > question is also calling on other contract > Assembly houses. If the rep is not calling on > other Ca's then I would say no.

I suppose that you are talking about capital equipment reps who also sell for the occasional contract manufacturer? A rep should be doing everything they can to earn your trust. If you haven't been told they sell both ahead of time, it is a conflict. Let's say that you are a CSM who could be competing for the same work as the rep who was soliciting potential business. Rep's contracts legally bind an organization to use "best efforts" to promote their principles lines. The underlying relationship of rep to principle is one of good faith. A nod and a wink to look the other way when conflicts arise with a current equipment buyer going after the same contract injures both parties. It's a matter of integrity, Reps who represent contract manufacturers but secretly carry two line cards are not working in your companies best interest.

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