Re: We no longer sell Premier Heritage riflescopes
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gen2mildot</div><div class="ubbcode-body">Dear Hiders,
My apologies for not responding sooner. Some folks in the industry actually take a break from their day job and try to enjoy the weekend with their families (and Moms). Nevertheless, it is Monday. So back to work.
First, I realize that there won't be much Premier can say here, if anything, now to dissuade peoples' decisions to NOT buy Premier-manufactured , ATI-distributed or GB Stumpp-represented products. I can see how, based on the facts presented by Scott Berish of Liberty Optics, a person would view Premier-ATI-Stumpp as evil and greedy.
Second, it seems that Scott's reputation is beyond reproach. There are always two sides to every story. In this case, one side being the customer-vendor perspective and the other, the legal and economic considerations of a manufacturer-vendor engagement.
I hope my response here meets with the approval of Snipershide and its moderators. We are not currently a vendor or paid advertiser, but we have supported Snipershide since its inception through past advertising and product donation. Though lengthy, this response is necessary to inform the public of the facts surrounding the suspension of Liberty Optics' dealer account.
To begin with, I think it's important to identify the structure of Premier and its affiliates.
Definitions:
1. Premier Reticles, Ltd is a manufacturer of high quality, high performance riflescopes. A 3rd generation, family owned and operated American company, which employs Americans. Chris Thomas is President.
2. Optronika GmbH , located in Biebertal, Germany, is an independent company founded by Chris Thomas in 2007 which employs an opto-mechanical engineering staff, formerly of Schmidt & Bender. All designs for Premier products originate here as well as the sourcing of critical high-precision components used to assemble riflescopes in Winchester, VA. Chris Thomas is President.
3. Armament Technology Incorporated (ATI), a Canadian company located in Halifax, Nova Scotia is an independent company contracted to serve as Master Distributor for North America for Premier Tactical riflescopes. ATI acts as an inventory holding company for which Premier Tactical products are distributed throughout a dealer network. Andrew Webber is President.
4. GB Stumpp and Associates, Inc. is an independent factory representation group engaged by Premier Reticles to solicit and establish storefront retailer (dealer) accounts in the Northeast US territory, for the purposes of stocking and selling Premier products. Terry Dean is President.
In January 2011, GB Stumpp was contracted to establish dealer accounts in the NE US. These factory reps, at their own expense travel state by state, dealer by dealer, informing and educating retailers about the quality and reputation of Premier riflescopes. One of the first questions after "what is my price?" is "do you enforce MAP?". Brick-and-Mortar dealers live by a separate sets of costs vs. certain internet retailers. The must make enough margin in order to: 1) buy and stock the product (customers need to fondle the product), 2) pay employees and 3), pay their overhead costs-just to name a few. Of course, in this day and age the biggest threat to store-front retailers is the internet. Though some consumers choose to purchase products online, the fact remains that store-front retail sales account for the vast majority of riflescope sales-though not yet for Premier, but if internet retailers are not kept in check, your local gun shop with its higher costs of operations WILL go out of business.
In the 3+ months of discussions with potential Premier dealers, the name Liberty Optics came up several times. Terry Dean took it upon himself to not just call Scott for pricing, but also to consummate a purchase. Per the following conversations with Terry, he assured me of his lack of knowledge of Snipershide and that he did NOT mention being a "Hider" in order to get a "good price". On 19-April-2011, Terry simply called and asked for a price for a Premier Heritage 5-25x56mm Tactical and was NOT quoted MAP, but was offered a price substantially lower than MAP. In fact $100s of dollars less. He placed his order immediately and got the scope two days later. Note: This was less than a week after the "stern email" dated 13-April-2011, sent to all Premier dealers admonishing them to avoid such practices. Premier nor ATI had any knowledge of Terry's intentions or actions.
On Friday 29 April 2011, opening day of the NRA Show in Pittsburgh, Terry presented to me his new 5-25x and the Sales Receipt, dated 19-April-2011, from Liberty Optics. Upon receipt of an email copy of this Sales Receipt, ATI contacted Scott via telephone and got the response that the "Terry Dean purchase discount was for a credit against previous purchases...". ATI advises that they have a copy of the bill of sale and there is no credit referenced on it. When pressed to substantiate this credit, Liberty states they need to call back. Upon a call-back, Liberty advises there was no credit, it was sold at the discounted price.
Up until this point, Premier and ATI did not take any action against Liberty Optics as there was no tangible proof that such pricing was happening. After countless discussions, verbal and written agreements, Scott Berish continued to sell scopes at highly discounted prices. Combined with his inability to honor his commitments and agreements, and the reluctance of new dealers taking on the Premier lines of products, Premier and ATI felt it necessary to finally take action. It should realized that the terms of Scott’s dealership status were same terms as all Premier dealers conduct their business under. Premier and/or ATI reserve the right to suspend, and if need be, terminate, dealer status if any of the provisions are violated. This doesn't have as much to do with MAP as it does a legal contract where the undersigned acknowledges the provisions associated with such violations.
Since Scott has been nice enough to share <span style="font-style: italic">excerpts</span> from intercompany documents between ATI and Liberty Optics, and the interdealer communique' , I don't think it's necessary to outline their contents. However, I want to remind the reader that we did NOT terminate the LO's dealer account, we simply "suspended" it. Here I will quote the Suspension Letter verbatim. <span style="color: #FF6666">Red text</span> indicates what was left out of Scott's opening remarks in this thread:
<span style="font-style: italic">"<span style="color: #FF6666">April 29, 2011
Liberty Optics LLC
Attn: Scott Berish
PO Box 2554
900 Riverside Rd
Kalispell MT 59901
U.S.A.</span>
Dear Mr. Berish,
It has been presented to us that your company has been offering Premier Reticles 'Heritage' Tactical riflescopes directly to consumers at pricing significantly below Minimum Advertised Price (MAP).
This behavior seriously undermines the value of the product in the eyes of the market and is particularly disruptive and damaging to the market distribution structure of Dealer and Stocking Dealer pricing.<span style="color: #FF6666">As such, it contravenes article 11 of our published Terms as detailed in our 'Distributor Pricing' schedule.</span>
Please therefore be advised that your Dealer Account with Armament Technology Incorporated, sole Master Distributor for the Premier 'Heritage' Tactical line of products, is hereby immediately suspended. <span style="color: #FF6666"> Your current Purchase Orders #5 (dated 21-April-2011) and #6 (dated 26-April-2011) will not be satisfied until such time that payment for both orders plus Liberty's outstanding account balance is received by Armament Technology Incorporated.
At that time, we will arrange shipment of the orders either collect or to your UPS account.
Assuming your outstanding balances are paid within terms, we are willing to review the status of your account in 90 days time.
Regards,
E. J. (Ted) Milner.
Vice President
</span>"</span>
In our opinion, we have given Liberty Optics several chances in the past couple years to adjust his business practices where Premier products are concerned. Premier nor ATI, intended this to embarrass Scott in any way. Scott chose to air these internal communications publicly.
Furthermore, in order for Premier Reticles to stay in business and continue to offer warranty service, we must sell millions of dollars worth of riflescopes. The actions of Liberty Optics or any such offending account, and their refusal to abide by legally binding agreements has forced us to the decision to "suspend" their dealer status. Therefore, to protect the investments of both existing and new dealers, who have signed the same agreements, we must weed out dealers who refuse to play by the rules.
In closing and due to the amount of expletives used in conjunction with Premier, its products, ATI and GB Stumpp et al, here on SnipersHide, we will not offer any further responses or posts concerning this matter.
Should anyone have additional questions or comments, please email me directly at:
[email protected]. I will do my best to respond to <span style="font-style: italic">respectful</span> requests in a timely and professional manner.
Emails to ATI can be sent to:
[email protected] Sincerely,
Chris Thomas, President
Premier Reticles
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I have nothing in this fight, but it just seems to me that some of the comments in this response are condescending. Call me crazy, but the language used in the second sentence of the opening paragraph just puts me off as well as a few other comments throughout the response. For example, we need to make millions of dollars or we just can't deliver on customer service. You can draw your own conclusion.
The comments about the internet hurting the brick and mortar business is nonsence. I own a brick and mortar business and deliver goods where I have to compete with the internet. I compete by delivering better service and follow with personal attention. Our products have MAP on them, but I can sale below that price if I so choose so long as I don't advertise. My competitors can do the same. Surprisingly we all make a living. And does the manufacturer care? No, they made their money / sales so it is not hurting their business.
I have been observant of many things over the last few years regarding Premier and think the tone of this letter is just added emphasis that for me, the final nail has been put in the proverbial coffin for Premier where I stand.
