You may remember a couple of weeks ago I published a blog entitled Trust Issues. In it, I discussed the notion of trust in dealer-supplier relationships, inspired by a comment I had received from a reader who felt they'd had theirs betrayed.
I asked for any follow-up comments you'd care to share with us and received an email from a dealer reader, who said what was written resonated with them - but, quite understandably, requested to remain anonymous. They did say to me though, that they would like me to use what they shared as a follow-up. They felt their story was an important example of why trust can be so fragile in our industry.
They told me how they once invited a member of a large manufacturer’s staff to their premises to help with some diagnostic machinery on loan. "What we didn’t know," they told me, "was that during their visit, they privately approached one of our key engineers and told them about a job opportunity within their company."
They went on to say that not long after the engineer handed in their notice. Most concerning of all though, they allege that a "referral bonus scheme" was in place with the manufacturer - which they believe was designed to encourage this type of behaviour, "even on a dealer’s own premises".
The dealer continued, "When I raised concerns 'high up' about what I saw as a serious breach of trust, the response I got was essentially a threat: stop pursuing the matter or risk losing our dealership. That was the moment I knew I could never trust that manufacturer again."
They concluded, "Partnerships in this business should be built on mutual respect. When a supplier openly undermines a dealer’s team for their own gain, and then shields that behaviour instead of addressing it, the relationship is already beyond repair."
A common practice?
Once one gets past the manufacturer's audacity in this story, the first question that it raises to me, is how common is this? It doesn't appear to be an isolated incident because our first dealer's comment that started this whole discussion a couple of weeks ago, related a similar tale of staff being courted by suppliers. So is it something that's happened to your business?
Now of course, stories like this don’t apply to every manufacturer. Many suppliers work hard to nurture strong, supportive, mutually respectful relationships with their dealers - and we know many of you have positive partnerships that you’re proud of, because you've told us about them. Many of our readers enjoy extensive, happy, friendly and profitable relationships with suppliers - and long may those continue. And please, if you have a positive story you'd like to share where your supplier partner has truly proven the regard in which they hold the relationship with your dealership, do let us know in the comments below.
But I think that’s exactly why stories like this one should be told. In contrast to what we all hope is the norm, they shine a light on the outliers. They illustrate why clear boundaries, open communication and mutual respect are non-negotiable.
It also proves that the notion of trust is utterly intrinsic in the dealer-supplier relationship. Once that's gone, surely the days of an on-going partnership are numbered?
