Another one that recently came to my attention. A first time newbie café buyer with no experience is recommended by the outgoing café vendor to sign up with a particular coffee supplier who runs a complete service and will be able to cater to all the client’s needs. The client approaches the supplier. He also approaches 3 other possible suppliers, but after completing his due diligence, settles on the original supplier recommended by the café vendor. The client specifies the supply of gear to a figure not far short of $20,000.00 worth, and a special signature blend, in addition to other services as negotiated including specialist training. At the end of the negotiations and in consideration of the total package specified by the client, the client is asked to enter into a supply agreement. The client is advised beforehand by the supplier, to take the agreement away to re read and think on and seek advice before signing, but the client declines to do so on the basis that he has definitively made up his mind to run with the supplier. He signs the agreement. This sets in motion all that is required to get the client started. The purchase of the equipment is initiated, as is development of the signature blend according to the particular spec. Meetings take place etc. ie the meter has started to tick over on developing the account. The client makes his first purchase and is loaned a small commercial machine for his professional development. All is good and amicable and proceeding with the intended goal in mind, however two weeks after signing up the client contacts the supplier and requests to be unconditionally released from the agreement. This is not an outcome the supplier has in mind and the client is requested instead to allow the negotiated supply of goods and services go ahead as already agreed. The client refuses and wants an immediate out. The unilateral refusal of the client to discuss or negotiate with his contracted supplier, causes two actions of last resort: 1) the client renders worthless all the good intent and considerable work that has already transpired, and the old chestnut is thrown to the wind: “...what are you worried about, business is business”, as a result of which 2) the supplier does the only thing left and brings up that there is a legally binding agreement to satisfy. Either or both of these usually ensure the irrevocable breakdown of the relationship. This leaves only one realistic course of action, which is for the parties to decide on a mutually agreeable figure to release the client under the terms and conditions of the agreement they both entered into in good faith. A legal letter is later sent by the client’s solicitor putting a silly offer on the table, which is par for the course. Sound familiar? It has nothing to do with per kilo pricing, and it eventually transpires that one of the other suppliers has returned to the scene to push the client into thinking it is in the client's best interests to go with him instead...despite knowing that an agreement has already been entered into and the wheels are already in motion. This is not an isolated case. It's just another example of the dirty tactics used by some suppliers in the over competitive and fragmented coffee bean supply industry in Australia, to wrestle kilos from wherever they can be found at whatever cost including advising and leading clients to break serious, legally binding agreements. It also indicates the low “base line” quality of many newcomers to café and coffee industry , where seemingly intelligent well educated people are susceptible and open to manipulation, cant spot "poison pen tactics" despite they are staring them in the face, have no idea of their own due to no expertise in the industry they are entering, and have no regard for ethics. Also note. High pressure suppliers sheeting in their own nest effectively as other suppliers adopt the same tactics to compete causing these practices to become more and more widespread and also, teaching their client base (cafe owners) how to play harder and harder ball and to become more and more aggressive in their demands on their suppliers. Welcome to "Coffee in Australia".
