I know conditions in Australia are different to Europe, but according to this article. They are doing it pretty tough there atm.
27 August 2002 – London (UK): Manufacturers are furious at the Corporate Express (CE) Solidarity Agreement letter requesting a price reduction of 4.5%.
The letter, which was sent out earlier this month, asked suppliers to absorb a price cut “due to the economic slowdown”.
Opi.net has been bombarded with feedback from angry vendors who have reacted to the letter with incredulity or plain disgust.
One vendor described the move as “bloody cheeky” while another said that any company that agreed to the proposal would put their entire business in jeopardy.
A particularly irate respondent said: “We do not consider it as a solidarity letter; we consider it a begging letter! We would feel ashamed if we sent out letters like this to our suppliers.”
With another manufacturer claiming that it has become “a daily routine to fix deals with these guys”, it seems that CE underestimated the wrath that the letter would cause. Vendors believe this is an offer made with a gun to their heads.
OPI says: It seems clear that most recipients of the letter will reject the proposal out of hand. Embarrassingly for CE, that means a Solidarity Agreement lacking in the basic component of solidarity not to mention a group of seriously disgruntled suppliers. Extremely damaging overall to business relations.
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