One of the local lumber yards has a contractor sales person. He is the only one working contractor sales in the store. He gets a percentage of all materials bought by the contractors who run accounts at the store. This yard used to give out leads for projects to contractors who bought from the store. Last year, the store decided to hire an in-house installer to look after any installed sales and cut out the contractors who used to look after the installed sales as a subcontractor to the store.
Now the contractor sales guy is running a renovation company on the side with his brother. He does the sales and the brother does the work. The leads are coming thru the store….leads that he used to give out to contractors that bought from him.
Is this not a huge conflict of interest? I think the owner of the store needs to know what’s going on and if he already knows, he needs to know that me and other contractors will be going elsewhere. If this guy wants to run a renovation company like the rest of us, he needs to quite his job and compete, advertise, price, and take the risks like me.
What do you think?
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It's a dog eat dog world out there, every man for himself comes to mind.
As long as it ain't illegal, you can complain all ya want. But the bottom line is someone somewhere has to feed a family too. Might not be moral or nice, but thems the skids when times are hard.
Spheramid Enterprises Architectural Woodworks
Repairs, Remodeling, Restorations
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I don't think "conflict of interest" is the right term but I could see where you might be upset.
Your only choice is to raise the issue and then vote with your wallet. Take your business elsewhere. I've always resisted bying from any supplier that also competed with me on the installation side of the equation. I felt that I was feeding my competition but sometimes it can't be avoided without causing more finanacial harm to one's self. (Home Depot and Lowes comes to mind).
Home Depot and Lowes comes to mind
First thing that came to my mind, also. "We install" View Image bakersfieldremodel.com
Either speak to the owner of the yard, take your business elsewhere, or both.
Jon Blakemore
RappahannockINC.com Fredericksburg, VA
I've never worked with an outside sales guy who gave out leads, so I don't see how that could be something to complain about.
If he's doing projects on the side with the leads that come in--well, that's a perk he's earned by getting into the position he's in. If you don't like it I assume you can find another yard to buy from. If you feel loyalty to the yard you could talk to the owner, or you could try to start a lumberyard yourself.
It depends really on some details that aren't clear.
If this is an arrangement he has with the store owner, then that's fine.
If these leads are coming to him, and should be turned over to the store's installer/sales, and he's diverting them to himself and his brother without the store owner's knowledge, then that's a conflict. Similarly, if these are leads that he would normally have given out to other contractors, but he's keeping them to himself, again without the store owner's knowledge, that would be a conflict.
It all depends on where the leads come from, where they are supposed to go, and what the store owner has agreed to or knows of. As a store employee, if he's using knowledge that he gains by working in the store to enrich his own business, without the store owner's agreement, that would be a conflict. If the store owner is in the loop, then it's not.
I would say the conflict is "instore". The leads should be going to the store installed sales.
Your old setup was a nice bonus, but not expected.
I think you should get a job in a building supply so you can get the leads.
When I had a bookstore, I used to go the Friends of the Library book sales. Then I noticed the other booksellers in town had "volunteered", and were working behind the counter. And all the sales were cherry-picked to the point where it was no longer worth my while to go. I thought about doing the same, but my conscience wouldn't let me. View Image bakersfieldremodel.com
Why bother? The leads are going to the sales person or the store installer... No matter how you cut it.... they ain't going to you.
I'd just calmly let the store management/owner know that such a practice is likely to cause contractors to shop elsewhere.
"Ask not what the world needs. Ask what makes you come alive... then go do it. Because what the world needs is people who have come alive."
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http://rjw-progressive.blogspot.com/
That happened to me about 6 years ago now the limberyard has went bankrupt and is closed. what goes round comes round
i'm with you. i'd take my business to a ya that is not trying to compete with me and tell the owner why.
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The building center I deal with is owned by long time family friends of mine. About 5 years ago, they came up with this bright idea. I warned them of the consequences of competing with their prime customers, but they wouldn't listen.
Soon they were directly competing with painters, carpenters, electricians, cabinet installers etc. These guys were so mad that most of them went to the local competition ( which is plentiful ) and they lost a big part of their business. They have since abandoned their in house installers, and have tried to woo their long time customers back, but I would estimate that at least 50% of them are permanently gone for good.
I'm thinking "conflict of morals" rather than interest.
I'm sure this doesn't conflict with his interests, or the owner's. I'm wondering if he and his brother even have some "special" pricing with the store owner worked out for these jobs.
One thing's for sure...it stinks that you have been cut out of work for it.
If you can get some other contractors to get behind you on the going elswhere thing, you may be able to put a bit of pressure on the owner to loosen up on the bidding process a bit.
If you have good report with past clients from the store...it's a leg up.
Good luck with this. Hate to hear it.