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Old 08-05-2002, 03:43 AM   #1 (permalink)
 
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FYI To Ask Don's Army:

First of all, IF the ETS Agreement with their distributors "expressly prohibits the sale" of their products through "buying groups" it doesn't matter whether or not Big Dog is really a "website remarketer" or not.

Thus, the primary intent of the ICE MILLER (ETS's legal counsel) letter to Michael Chunn (misspelled Chung) was, IMHO, to put the distributor servicing Big Dog (Sam James) "on notice" to immediately "cease and desist" selling to the "buying group" known as Big Dog or risk losing the ETS line.

What this means is that while two or more salon owners can get together and form a buying consortium (buying group) in order to negotiate better prices from a dealer, that dealer cannot sell ETS lotion products to the buying consortium! If they do so, they (the dealer) will violate their Agreement with ETS.

While this provision by ETS in their Dealer Agreement may be legal and enforceable (see below), it certainly IS NOT (IMHO) ethical and moral.

Why do I believe that it is not ethical and moral?

Because small tanning salon owners who "band together" in buying consortiums in order to try to purchase products at a price comparable to what large salons are paying (trying to level the playing field!) for them are, once again, being discriminated against!

For instance, (and this is where the ETS legal argument may fall apart if challenged in a Court-of-Law) a dealer who also owns tanning salons should properly be considered to be a "de facto buying group" (just like Big Dog) with regards to the products he/she purchases for use in his/her own salons and, therefore, should be prohibited by ETS from selling to himself/herself.

The "claim" that Big Dog is a "website remarketer" is just "lawyer language" because ETS knows (or ought to know) that a website selling lotions to the public IS NOT the same as a website set up to facilitate the purchases of lotion by tanning salon owners.

The "bottom line" is that ETS is "penny wise and pound foolish" with this action. They may be "legally right" but they have committed, once again, (remember the recent ETS-Helios Encryption fiasco!) a major public relations blunder that will, I believe, cost them dearly next season. For instance, we sold a lot of A/G and Swedish Beauty products this past season but, given this decision, we are now reviewing whether or not we will stock and sell these products next season.

When you see counterproductive decisions like this being made by supposedly competent business executives, it makes you wonder what the **** they are thinking about! Keep in mind that the great majority of them aren't capable of working behind your front counter and you can begin to understand that the real problem is that they just don't "relate to" (and understand) the world we live in. They are "in" the indoor tanning industry but they DO NOT understand the business of tanning!

Is it any wonder that so many astute tanning salon owners have already gone "PL" and many, many more will add their own private label lotion line this year? What other choice do we have to protect ourselves from diversion and to increase our profit margin (to a level enjoyed by big tanning salon operations) given decisions like the one ETS made?

I have posted an "Ask Don's Army e-Message" to Trevor Gray, President of ETS asking him to reconsider this decision. I have a lot of respect for him and, hopefully, he will reverse this incredibly counterproductive and "heavy-handed" decision. ETS already has the reputation of being the "900 pound gorilla" in the industry and since this will only further this belief, perhaps Trevor will understand how this decision made by his staff further tarnishes the image of his company. If you agree with it, please take a few moments to add your weight to my request that he reconsider this decision by clicking on the link below, adding your comments (if you choose to), adding your identifying information, and sending it to Trevor.

http://www.tantalk.com/forum/auto_email.php?mode=send&id=10

[Working together, we CAN make a difference!]

Don "Saddened By The ETS Decision" Smith[ This Message was edited by: Don Smith on 2002-08-05 04:15 ]
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Old 08-05-2002, 07:54 AM   #2 (permalink)
 
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Don,

Thanks for stepping up to support me and the salons with your email army. I received a letter from Ice Miller the same day Michael got his letter. It has been handed over to the law firm representing TSS in this matter. All last week, no one was available at Ice Miller, and ETS would not accept a phone call to discuss this matter. We will try to contact them again today.

For the record, I do not feel that I have violated my contract with ETS.

The outcome of this could be a big win or a big loss for salons everywhere.
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Old 08-05-2002, 11:18 AM   #3 (permalink)
 
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Sam, Don, and all the others that are involed. I got an email from Bill Pipp just this morning saying, "This is a legal issue which we need to pursue. The set up of Big Dog violates our Distribution agreements and thus must be handled appropriately."

My question to him was why? This was his answer. My belief is we need to all come together on this one because if we don`t we are giving up our rights. Rights to freedom. People this is the USA. If ETS does not want to sell to salons then so be it. Are we going to let them tell us who, where, and how we buy out products from?

STAND TALL, COME TOGETHER, AND FIGHT.
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Old 08-05-2002, 11:57 AM   #4 (permalink)
 
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Thanks Frankie! And thanks for all the support from Big Dog Members. There are lots of orders coming through today.
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Old 08-05-2002, 01:43 PM   #5 (permalink)
 
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Mike...... have you spoken to anyone at ETS?

Let's get something more than speculation....

The letter could indeed be a mistake - - and now become the launching board for others to take advantage of the situation....


Or~

The Letter could be for real - - - and now become the launching board for others to take advantage of the situation.....


See me say love???? There are always those just waiting for a good opportunity....

Let's shed some more light on this Mr. Smith!


Sheila
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Old 08-06-2002, 08:22 AM   #6 (permalink)
 
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If Sam and Mike have tried to talk to ETS and they refuse to discuss this issue then how can they get more info. from them?

Have you tried to call them and get their side of the story?
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Old 08-13-2002, 09:23 AM   #7 (permalink)
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I support Big Dog 100% and think that salon owners should form associations and buying groups to protect their intrest vs the major manufacturers seeking to control and isloate them.
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