Monday, October 20, 2008

Gentleman's Agreement: A Disappearing Trend: UniformMarketNews.com

"So many things have changed," Dave Hindlemann reflects. "It used to be a handshake was a man's word. Now, it's lawyers and contracts cut and dried. The personal element is missing."  (“Made to Measure Magazine," Spring/Summer, 1997).

If you’ve been talking with your colleagues lately, or even if you’ve been involved personally, you’ve probably noticed that our society has changed when it comes to the way in which it does business.  Fannie Mae and Freddie Mac aside, credit crunch and housing markets, too, the uniform industry has been hit with the same kinds of changes in ethical behavior—not only from customers, but from our own small family of apparel manufacturers and suppliers.

More and more, companies are refusing to lend credit, expecting prompt payments with 50% down and balance prepaid before delivery.  More and more customers find themselves short and not wanting to pay their bills, no matter how loyal they’ve been in the past.  Return authorizations are being required from corporations that heretofore accepted merchandise sent back as a matter of courtesy: Good will is no longer the name of the game.  One or two bad customers can shift more friendly relaxed business policies away from good will, towards harsh, stiff penalties. 

Companies that have previously been referred to as being legitimate have no qualms about writing out contracts or purchase orders, and reneging on them without blinking an eye.   Jobbers who buy and sell goods are paradigm.  They offer rock bottom prices, insist the selling customer wrap and label every bolt of fabric (costing hundreds of dollars in labor), change the terms as much as two or three times, and then feel free drop the contract, altogether, knowing that a lawsuit against them would cost the aggrieved party far more than any sale would be worth.  A legal piece of paper means little.

Leading suppliers in the industry find themselves being “stiffed” over and over and over again as manufacturers drive their businesses into the ground, bankrupting themselves rather than closing up before their accounts can be paid.  It’s not one supplier; it’s not one manufacturer; that’s the tragedy of it.  It’s become a trend.  It’s almost as though one’s fellow human being doesn’t matter any more.  When President Harry Truman said, “The buck stops here, he was referring to responsibility—fiscal and otherwise—not his inside pockets.

Commission sales?  Repeat sales?  Whatever happened to customer loyalty?  Whatever happened to a vendor calling on loyal customers?  Whatever happened to salespeople respecting colleagues’ territories?  Whatever happened to companies who used to sell strictly wholesale, but have decided additionally to sell retail, and also undercut their own sales forces by going direct to the customer with a cheaper price than a salesman could offer?

Whatever happened to identity companies that used to make their money solely on embroidery or screen printing—that now sell garments at cost to retail customers in addition, so that the uniform companies have to struggle to compete with those on whom they once depended for wholesale service?

Sound like a lot of whining?  No.  It’s about business ethics:  Respect for one’s fellow, and genuine love of a game that includes the players as well as the rewards.

Women are treated shamefully.  One woman who owned a contract shop first had to bring in her father to gain respect, and then her husband.  The irony is that her 50+ employees are 99% women.  It’s not only about men, but women themselves don’t respect other women as leaders in our industry.  Another smart, savvy gal with whom I spoke waxed philosophical and said that one must be tolerant, bite the bullet and keep one’s mouth shut, not stooping to the level of those who insult people merely because of their gender.  Sounds stoic and mature.  Not so easy to do. 

There was the company who lifted all the drawings from one website to its own, copyright laws aside.  It wasn’t about a link.  The kicker is that the one company was actually doing business with the other at the time of the thievery.   How sad that in such a small and close group of professionals such as ours, each business—mostly small in size, as we struggle to band together to survive  offshore manufacturing that is biting at our heels—has to sleep with one eye open, so to speak. 

Independent contractors are often of a dubious sort at best:  Deadlines and quality control are mysteries left unsolved until the work is turned in.   One can only hope.  

Still and all, it must be said that there are the good guys, too.  What’s encouraging, it isn’t about age.  One might think would be.  There are younger people and older people who are kind, disciplined, and principled; a part of old school values.  Make no mistake that such is the case.

Vendors pitch in to help one another in a tight spot, all the time.  And it’s swell.   However, it’s not about whole companies or general policies any more.  It’s not common practice, but rather the exception to the rule.  People are nice, people take an interest.  But the reality is our industry is so besieged by offshore pressures and survival tactics, the real people who matter often get lost in the shuffle.  That’s what’s sad.


The important thing is that when you go home, you want to be able to sleep at night.  If your approach and behavior toward your customers and colleagues are quite literally the same as those with which you would want them to treat you, then you know you’re on the right path.  If not, perhaps you need to make some changes.   There’s nothing wrong with being competitive or wanting to win the sale.  But there’s a tragedy if it’s at human expense when the price is good will, trust, respect, integrity, and responsibility. 

No comments:

Post a Comment

This is your moment: