Responses to ID's December 2002 feature, National Contract Hangover

I wanted to thank [Mr. Mikkelsen] for writing the article [National Contract Hangover] for INDUSTRIAL DISTRIBUTION . … In my experience, these contracts make everyone involved feel small and insignificant, unvalued, and that their efforts are pointless. That is what happens when you make decisions at the top without listening to the body of the company. No company is ever built that way, but plenty are torn down from it. In these deals nobody wins.

However, what [Mr. Mikkelsen's] article gives me is a way to show some focus to my friends, help them keep driving forward, patiently waiting for the contract to finish so we can get back to work helping our friends at these plants get their machines running, their costs down, and down-time reduced.

Thanks again for the article. This really will help me encourage some of my salespeople who have really been kicked in the teeth over some corporate contracts. Mark Solvie TVT-USA

The article by Stacy Mikkelsen, National Contract Hangover, expresses concerns germane to the OEM side of the bearing business as well as the distribution supply chain. While we do not take an active role in the distribution market, our OEMs often lose sight of the service that comes with the price of the product. Pressure to guarantee prices for three and even five years results in overcommitment.

Continuous price pressure and lack of loyalty often result in dissatisfied customers. The word "communication" is not just a cliché. Tom Hull, National Sales Manager VNC Bearing Corp. Plano, Texas

I wanted to send you a note in recognition of the article written by Stacy Mikkelsen.

The article identifies several irritating issues associated with national agreements and makes several valid points on how independent distributors serve customers. I think Stacy is right on! Jerry Herrin VP Marketing Wilson Co. Addison, Texas