v8klla
10-03-2010, 01:23 PM
As a retailer in the sport compact market we have been selling HKS products via their distribution network for more than four years. Needless to say I was excited when I received a newsletter outlining an introductory offer for their latest product offering, the GT7460R turbocharger. Multiple distributors contacted me regarding this offer as availability of the kits was extremely limited and they were well aware of our presence in the Evolution markets. Armed with that information we immediately launched marketing efforts to ensure we were among the first to promote this introductory sale. We were not alone, however, as the news had spread quickly and several other retailers followed suit.
With an MSRP of $2150 we made the decision to forgo purchasing of the kits without a confirmed customer order as at the time there was still doubt in my mind in regards to the popularity of this turbocharger. Initial prices were quoted at HKS' MAP (Minimum Advertised Price) but we quickly realized that several other retailers (including one known HKS direct dealer) were quoting and ultimately selling the kits at a lower price. At the request of several customers we decided to match the lower pricing knowing full well that those very customers would simply purchase elsewhere at that same lower price if we decided otherwise. It is my opinion that those customers chose to purchase from us based on previous positive experiences and/or our track record for outstanding customer service.
Each and every sale that we made was prefaced with a phone call to our distributors to verify that kits were available to fill the order prior to accepting payment from our customers. Purchase orders were sent and confirmed with our distributors leading us to assume that all was well and it was business as usual.
On September 22nd a facebook post from Mike @ AWD Motorsports foreshadowed that my assumption of business as usual was incorrect:
Today is just fun filled with excitement.. HAHA id just like to say its NICE for once to see a Manufacturer like HKS cut off a Vendor who repeatedly Violates the resale Policies.. Im not going to mention names but just like to say THANK YOU HKS!!! There are still standup LARGE CORPORATIONS in this industry that have some BALLS!!!
At that point in time I hadn't heard anything from HKS or their distributors in regards to this claim. It wasn't until September 30th, over a week later, that the situation went downhill. A large HKS distributor that was the recipient of several of our purchase orders for these kits informed me that they would not be able to fill any of our orders. They claimed that they had not received enough kits to fill any of our orders, not one. I immediately recalled the facebook post above and realized what was happening. A phone call to HKS was in order...
If you aren't already aware getting a hold of HKS is nearly impossible unless you are a direct dealer as they direct all inquiries to their dealer network. I ended up calling a tech support line and ultimately made my way through the prompts to the customer service manager. I inquired as to why the decision to disallow my sales of their product was made without any communication or warning. I informed the manager that I had already accepted payment from my customers for these products, and had confirmed purchase orders from their distributors. I was informed several times that the kits were very limited and that the distributor in question may not have received enough kits to fill any of my several orders. I responded that my distributors were well aware of the number of kits they were to receive, and that I had confirmed each order individually prior to processing. At this point she defaulted to a response that involved me having to contact the distributor for additional information (which I had already done) and I quickly realized that the conversation was futile.
The rest of my day revolved around strategy as we prepared to deal with this PR nightmare. My sales staff had to contact several customers, inform them of the situation, and either move them into another product or process a refund. I can't imagine that any of these customers were happy to hear from us that day, but Mike @ AWD simply couldn't hold back his excitement, he's a real class act...
Those of you who ORDERED HKS turbo kits thru MAPerformance i would rethink your order over as I am told they cannot get the TURBO KITS they ordered.. Please give Ivey Tuned a call @ 908-925-8700..He has them IN STOCK.. Thank you!!!
The following day was just as action packed unfortunately. Apparently I mentioned the name of another distributor from whom we had purchased these kits when I was on the phone with HKS. My representative gave me a call and it sounded quite familiar, however, the "we didn't receive enough kits" excuse wasn't of much use this time around. The distributors online stock check system showed exactly the number of kits we had originally ordered available for purchase! Ultimately, my representative had no choice but to inform me that HKS would not allow them to sell the kits to me, just as I had suspected all along.
If you are a customer of ours that was involved in this fiasco I sincerely apologize for any inconvenience this may have caused you. I hope this chronicle of events helps you understand why this happened and allows you to form an opinion in regards to HKS' actions and business practices. As always we will do everything in our power to rectify the situation to your satisfaction. Please feel free to contact me directly with any questions or concerns.
Chris Carey, President
Modern Automotive Performance
With an MSRP of $2150 we made the decision to forgo purchasing of the kits without a confirmed customer order as at the time there was still doubt in my mind in regards to the popularity of this turbocharger. Initial prices were quoted at HKS' MAP (Minimum Advertised Price) but we quickly realized that several other retailers (including one known HKS direct dealer) were quoting and ultimately selling the kits at a lower price. At the request of several customers we decided to match the lower pricing knowing full well that those very customers would simply purchase elsewhere at that same lower price if we decided otherwise. It is my opinion that those customers chose to purchase from us based on previous positive experiences and/or our track record for outstanding customer service.
Each and every sale that we made was prefaced with a phone call to our distributors to verify that kits were available to fill the order prior to accepting payment from our customers. Purchase orders were sent and confirmed with our distributors leading us to assume that all was well and it was business as usual.
On September 22nd a facebook post from Mike @ AWD Motorsports foreshadowed that my assumption of business as usual was incorrect:
Today is just fun filled with excitement.. HAHA id just like to say its NICE for once to see a Manufacturer like HKS cut off a Vendor who repeatedly Violates the resale Policies.. Im not going to mention names but just like to say THANK YOU HKS!!! There are still standup LARGE CORPORATIONS in this industry that have some BALLS!!!
At that point in time I hadn't heard anything from HKS or their distributors in regards to this claim. It wasn't until September 30th, over a week later, that the situation went downhill. A large HKS distributor that was the recipient of several of our purchase orders for these kits informed me that they would not be able to fill any of our orders. They claimed that they had not received enough kits to fill any of our orders, not one. I immediately recalled the facebook post above and realized what was happening. A phone call to HKS was in order...
If you aren't already aware getting a hold of HKS is nearly impossible unless you are a direct dealer as they direct all inquiries to their dealer network. I ended up calling a tech support line and ultimately made my way through the prompts to the customer service manager. I inquired as to why the decision to disallow my sales of their product was made without any communication or warning. I informed the manager that I had already accepted payment from my customers for these products, and had confirmed purchase orders from their distributors. I was informed several times that the kits were very limited and that the distributor in question may not have received enough kits to fill any of my several orders. I responded that my distributors were well aware of the number of kits they were to receive, and that I had confirmed each order individually prior to processing. At this point she defaulted to a response that involved me having to contact the distributor for additional information (which I had already done) and I quickly realized that the conversation was futile.
The rest of my day revolved around strategy as we prepared to deal with this PR nightmare. My sales staff had to contact several customers, inform them of the situation, and either move them into another product or process a refund. I can't imagine that any of these customers were happy to hear from us that day, but Mike @ AWD simply couldn't hold back his excitement, he's a real class act...
Those of you who ORDERED HKS turbo kits thru MAPerformance i would rethink your order over as I am told they cannot get the TURBO KITS they ordered.. Please give Ivey Tuned a call @ 908-925-8700..He has them IN STOCK.. Thank you!!!
The following day was just as action packed unfortunately. Apparently I mentioned the name of another distributor from whom we had purchased these kits when I was on the phone with HKS. My representative gave me a call and it sounded quite familiar, however, the "we didn't receive enough kits" excuse wasn't of much use this time around. The distributors online stock check system showed exactly the number of kits we had originally ordered available for purchase! Ultimately, my representative had no choice but to inform me that HKS would not allow them to sell the kits to me, just as I had suspected all along.
If you are a customer of ours that was involved in this fiasco I sincerely apologize for any inconvenience this may have caused you. I hope this chronicle of events helps you understand why this happened and allows you to form an opinion in regards to HKS' actions and business practices. As always we will do everything in our power to rectify the situation to your satisfaction. Please feel free to contact me directly with any questions or concerns.
Chris Carey, President
Modern Automotive Performance