Hello everyone,
I heard a very rumor regarding the radiator manufactures and retailers. While it is difficult to believe this story and very much rumor, my understanding is that there are a series of emails which could indeed verify this story.
My understanding is that the Oregon Company used the California Company in order to get an exclusive distribution agreement with a company with the Philippines Company and also get that company to lower its price.
The really clever part about it is how the Oregon Company played both sides against the middle. My understanding is that California Company approached the Oregon Company as a source for radiators very similar to the Philippines Company radiators. The Oregon Company was very interested and even went as far as to send samples of the Philippines Company radiators to be cloned. Once the California Company completed tooling of the new but very similar radiators, the California Company and Oregon Company negotiated pricing. After a price was agreed upon the Oregon Company backed out.
The Oregon Company then begins negotiations with the Philippines Company in order to secure an exclusive distribution agreement and lower pricing. The Philippines Company sold its products to OEM Distributors and Retailers alike and did not have a particular interest in an exclusive agreement as this would reduce its margins. However, the Oregon Company now had leverage. Though it could not directly us this leverage less tip its hand. So the Oregon Company used a retailer in New Mexico to request an OEM sales quote from the Company in California and calls several times to inquire about availability. This retailer in New Mexico then bounces this OEM quote off of the company in the Philippines.
The company in the Philippines then become nervous and realizes that it now has real competition and has also been dropped by one of its largest OEM partners (a company on a hill) The Philippines Company agrees to the exclusive distribution agreement with the company in Oregon and does not realized it has been played.
Incidentally I heard that the Retailer in New Mexico actually had the Gaul to thank the Company in California for helping them get a lower price from the company in the Philippines by being leverage for the Company in Oregon.
That is the story as I heard it.
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