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Trust Us

Issue: 2009mar

A Distributor Asks:
Is there a professional way to protect myself from prospective clients stealing my ideas and putting them out to bid without coming across as totally distrustful?

Marcos Domiciano
Account Manager
MediaTree
UPIC: tni
There is really no way to protect yourself. We have partnered with distributors in the past and developed creative ideas to present to their clients, only to have them bid out and we both lose the deal. It’s frustrating because a lot of time is spent creating a solution only to have it bid out and lost to a competitor who had no part in the initial hard work set forth to develop the idea. I would imagine the only way to set something up is having them sign an agreement to use your services, but if they are planning on bidding out then they will most likely turn down your offer.

It’s a tough situation, and I know the frustration. It has happened to us and our partners a couple of times. I wish there was a straight answer or a method of protecting everyone, but I think it’s all a matter of chance.

Vadim Molochnikov
Sales Manager
CustomUSB.com
UPIC: USB2
There is always a chance that someone you quote will take your idea and just go elsewhere to shop for a lower price. We do about 60 or more quotes a day and not all of them order, and some of them probably take the information they get from us and try to outbid the price with our competition.

As a creative individual or company, the best you can do is keep coming up with creative ideas and stay remarkable. There will always be a market for what you do, as long as you are truly exceptional. And if you sometimes get someone who takes your concept and bids it out, it’s okay. You probably don’t want these people as customers anyway. What I’ve found is that if you teach prospects something they did not know before, they will come to you in the future, even if they don’t order the first time.


Jim Custer, MAS
Owner
Results by Objective International
UPIC: ROI
The short answer is yes. Asking for nondisclosure protection for your ideas will raise both your self-image and the image your prospect or client has of you.

After getting burned several years ago, I came up with three simple questions to ask at the initial interview stage. They are most effective when dealing with a single product or more and are not necessarily an approach for solution-based programs, but can be used for clarification if needed. For solution programs, a simple nondisclosure form is a sign of professional confidence, and it should always be a part of a distributor’s policy for such programs. The three questions for single products or more go like this:

Mr. Smith, it has been my experience that there are three types of company policies when it comes to investing in a promotional program or product. The first is one where the company loves the idea and will go with both the approach and the firm that best addresses its needs. A second is to go with the best idea and the company that presented the approach, but negotiating the offering price first. The last is, “We love the idea and will go with the idea, but the purchasing policy requires everything be put out to bid.”

Please tell me, which of these three approaches best represents your firm’s policy?

If the answer is the last one, then ask if there is a dollar level where that policy kicks in and if they are open to working with you, while remaining within the firm’s policies. Whatever they say, you now know where you stand.

Marsha Londe
CEO
Tango!
UPIC: TangoP
While there are steps to take, they’ll only work with the ethical buyers—those that need a simple reminder that ideas have value. Sadly too many clients view products as commodities with no regard for the time, knowledge and creativity involved in selecting the right product to fill their needs. Your only recourse with bidders is to stop providing ideas. You’ll save yourself the aggravation, and your time will be better spent working with those that appreciate and rely on your abilities and services.

As for that gentle reminder, artwork, proofs and written presentations can come with the disclaimer, “Intellectual property of [your name here],” and a follow-up line or two stating that the ideas were generated by someone and are a reflection of the time and expertise invested.

Of course there’s another element at play here: distributors willing to bid on someone else’s work. With all the hard work completed, it’s simple to make a price on a product. I’ve known distributors to check out custom spec samples, make a price and steal the order. But in both cases, I stayed in business and they didn’t. And yes, I quit the client and returned at the request of the president after the bidding buyer left.

Answer Our Question
A Supplier Asks:
I know that suppliers are always out to get the lowest price, but where is the trade-off between being the cheapest and having the best service?

What’s your answer? E-mail answers along with your name, title and company name to Question@ppai.org by March 28 for possible inclusion in the May 2009 issue of PPB magazine.







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