ISE 10 resolution

[derbyhoppy]

I have fianlly satisfactually resolved the issues surrounding our launch of the Asko made ISE 10.

The nub of the problem is that Maytag UK have a binding contract with Asko for supply of domestic machines in the UK, therefore whether we like it or not if we want to sell Asko’s we have to deal via Maytag (for the next 12 months at least).

Maytag have basically been incompetent. The junior people, who forgot to order the original machines and when they did place the order signed off the wrong machines specifications resulting in us getting the wrong machines in October then went in to panic to cover their own arses and it was only when their plan to modify machines they were receiving as stock at the start of November went wrong (as they were silver) that they had to escalate it to board level.

Since then we have had progress but I have had to play hard ball to get a deal that is acceptable, key points are below;

1. Desire to do business with us – Maytag’s core business is refridgeration, they sell very little laundry and see us as a way to deliver their obligation to Asko.

2. Continuity of supply – Asko are very strict in terms of booking production, there is a 13 week lead time. This means we get the correct ISE 1600 spin machines in white in week 5 2008 (start of February). I have booked production for end April, July, October. This can be bought forward if our volumes exceed forecast or put back (I am now personally controlling this as I do with the 5s and 2s).

3. Payment terms – This was a big stumbling block. Maytag have had £30,000 of our money since May and we have still not received the correct machines. The deal was that we pay half on order balance on delivery. I no longer trusted them therefore was unwilling to hand over any more cash. They have now agreed I pay half AFTER the machines have been made and shipping commenced, balance after the stock has arrived and checked. This mitigates our risk and boosts to our cashflow, allowing us to potentially bring in a built in as well as freestanding dishwasher in the new year.

4. 1400 spin machines – After much brinkmanship Maytag have agreed to give us £75 off the machines in the warehouse to sell them through. We have decided to top this up, meaning if you wish to sell ISE 10 1400s we will supply at a discount of £100 including V.A.T until the stock has gone.

While this has been a saga and a times a nightmare, these are fantastic machines and will be a key part of our range from February on-wards.

Also remember no contract lasts forever, it’s up to all of us to try to put ourselves in pole position next time Asko are looking for a UK partner (my gut feel says it won’t be long).

Thanks for your patience

John

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