sales rep quotes wrong price what to do?

Not a big amount of money but this really gets under my skin. I pre-sold three cases of wine to a customer. It’s decent wine but not something that I want to carry right now. I gave the customer 15% off based on a price that was quoted as $111.90 per case wholesale. The wine comes in at $141.48 wholesale. I can’t fight the wholesale price because I am in this crazy control jurisdiction known as Montgomery County, Maryland. Sales rep says sorry, just tell the customer that the price was misquoted. The sales rep used to own a store and claims that’s what he would have done. I won’t do this to a customer. I basically like the sales rep and his company. I know his boss pretty well. If I did not have a relationship with the sales rep and the company, I might have terminated the relationship immediately. Plus, they have some products which I really care about. Any suggestions how I should handle this?

I’m not ITB but here’s what I’d do:

  1. assuming that you’re not losing money, I’d eat it figuring that your time was worth something and I’d ask for future quotes in writing.
  2. if you’re really pissed enough and losing money, call the rep’s boss and explain that his employee is costing you money and see if he has any suggestions (i.e., is there anything he can do to “make it right”).

Do both. Unfortunately, since it is Monkey County, all of the booze at retail has to pass through the County (and their 25% fee) and I can’t think of a way to make the business right, but the distributor could at least do something personal for Justin to make amends.

Getting rid of our ridiculous liquor laws in one of my goals in life. They are why I buy almost all of my beer/wine/liquor in DC. There have to be enough people like me that the county is losing more money through lost sales that they could tax than they are making with this inane system. The system is also why our restaurants suck on the whole compared to DC and NoVa. I’ve had many ITB tell me that they would never consider opening a restaurant in Montgomery County. A ridiculous state of affairs for what is (I think) the 10th highest per capita income county in the country.

You’ll (hopefully) break even on the transaction so don’t lose any sleep. If the rep and/or his boss are reasonably sharp they’ll make it up to you somehow. This week a sales rep called with a problem - she had a full day “ride-with” and none of her accounts wanted to see her or taste the wines. I agreed as a favor to her and she later dropped off a bottle of something we already have on our shelves as a way of saying thank you.

I had a merchant I had dealt with before call me up and say “Sorry, but the price they quoted me on that wine for a 6-pack, not a 12-pack. So the price should be twice what I quoted you. Would you mind if I charged you my wholesale price?” I said yes.

+1

We’ve had this happen a couple times. Distributors are notorious for listing “per case” in their books/sites meaning whatever size box the wine comes in such as six packs of Opus One listed as a case and some Mags and 3 liter bottles that come one to a box listed as a case. Now we ask how many bottles are in the “case.”

As for misquoted prices, we’ve biffed it a couple times when it was break even or minimal loss to maintain good customer service. Our distributors, with one exception, have worked with us and at least split the loss.

I can’t handle the ambiguity!

It’s happened to me, too. A rep might be willing to “sample” you some bottles that you already sell to make up the difference. Otherwise, I’d eat it to keep a customer but the rep definitely owes you.

JD

Thanks for the feedback, I am at a little more than break even, the rep and his boss are decent guys and I am just going to move on.

I’m not ITB, but I’m pretty sure in Ohio that you couldn’t sell the wine at the “discounted” price even if you wanted to, since you have minimum required percentage markups (50% on the wholesale price you paid) on everything you buy. The only exception is “closeout” wines, but once you closeout a wine, you cannot carry that wine again (at least not that vintage).

I would eat it as well but i am sure the rep and boss could find you a sample bottle or two of something you carry on a regular basis so you could do a tasting or replace a bad bottle?

When a new supplier hands me a credit app, I hand them this and stress that it is NOT a joke:

Vendor’s Agreement

I the undersigned representative of _______________________ wine and / or spirits wholesaler do hereby agree to the binding definition for the purpose of ALL business with WINE EXPO that “a case” of alcoholic beverages is 9 liters of product (as defined by the US Government!) however packaged unless specifically released from this understanding by WINE EXPO.

This absolutely and literally means that

one “case” of 750ml bottles contains 12 bottles

one “case” of 375ml bottles contains 24 bottles

and one “case” of magnums (1.5 liter) bottles contains 6 bottles

Failure to comply with this will result in your company becoming persona non grata with ours and we are not kidding.


_________________________________ Vendor Representative

_________________________________ WINE EXPO Mgmt



Feel free to edit and use it for your store.

Just make the salesman make it up to you. I’ve had this happen countless times and will just tell them they owe me the difference. As for 6pk vs 12pk pricing, I make sure every new salesman I meet gets the same speech. No parking in the stores parking lot, no quoting case prices (bottle prices only), and don’t ever talk to customers. I’ve only had to get rid of one salesman because of quoting case prices constantly instead of bottle cost.

No parking in the stores parking lot, no quoting case prices (bottle prices only), and don’t ever talk to customers. I’ve only had to get rid of one salesman because of quoting case prices constantly instead of bottle cost.[/quote]


+1000

Thanks, just trying to get some clarification.

Me too. There’s some mumbo jumbo in the CA ABC code about reps not being allowed to pour even in a tasting space. I don’t really get that and see reps pouring at tastings all the time. Confusing. OTOH some reps I’d prefer to have never let talk to customers, so I get it.

Classic example of why you don’t let reps talk to customers:

You’re 20 minutes into putting together a wedding with 15 cases of wine which you HAVE in inventory and he starts touting customer of another wine which you have four bottles in stock and would have to order the balance from him.

assuming the distributor can’t give you a price discount on the invoice due to law, maybe they would be inclined to give you some “free goods” to make up the pricing differential?

They misquote prices here on a regular basis. Since we have a good relationship with most, something gets worked out to make good on the mistake. One hand washes the other.

I mean don’t ever talk to customers (unless you’re pouring wine for a planned event or something). It’s always them trying to sell their wine, and my customers don’t want to talk to someone “that sounds like a salesman.”

Last week a woman came in who needed a case of wine not to exceed $15 per bottle. That was the budget her boss gave her so that’s what she could spend. I suggested a bottle and a salesman grabbed one of his bottles off of the shelf, shoved it in her face, and said “This is much better wine.” It was $18 so she passed, reiterating that it had to be under $15. He said “it’s only $3 more I’m sure Peter would give you a discount” and winked at me.

That salesman has the honor of getting thrown out of 2 of my stores while working for 3 different companies over the course of 6 years.