Generally I am very wary of dealing with unknown vendors for any product. But sometimes it can't be avoided. Here is one deal that went bad...
In my office we have a three year old Polycom SoundStation2W system with two extra mics, which we are using for our conference needs. And we are not entirely happy with this setup. Meanwhile, our US office staff use the Polycom SoundStation VTX-1000 and are very happy with it.
Therefore, I was asked to purchase the same system. I was told that when two SoundStation VTX 1000 conference phones connect on opposite ends of a call, the phones automatically connect in Polycom HD Voice, resulting in extraordinary fidelity. So I was to buy the exact model and nothing else.
http://www.polycom.com/global/docume..._datasheet.pdf
Now, this is not a product one can buy in the store. We checked with our regular hardware dealer and he was not an authorized dealer for Polycom, so he couldn't help. So we approached Polycom India directly and they suggested a Bangalore based authorized dealer called
Online Instruments India Private Limited.
www.onlineinstruments.co.in - Home Page
First let's look at the cost, this is right from the vendor quote:
Polycom make extendable Analog audio conference equipment with extendable mics (Model No: SS2 Ex) = Rs.36500 + VAT
Polycom make extendable Analog audio conference equipment with extendable mics and sub woofer (Model No: VTX 1000) = Rs.65000 + VAT
The addition of the subwoofer alone kicks up the price by Rs.28500 to the original system. But we already have a system without sub-woofer, which we are trying to retire. So we had no choice but order the VTX 1000 because we needed the sub-woofer to make the Polycom HD Voice magic to happen.
And then the drama started....
Online Instruments India Private Limited wanted 100% payment in advance. Thanks to prior experience, I hate paying any advance let alone 100% advance to anybody before the product is delivered. Polycom had recommended only one authorized dealer, and that dealer insisted on 100% advance saying we are a new customer. However, they promised delivery in 7 days upon receiving payment. Since Polycom is a major corporation and Online Instruments India Private Limited was recommended by them, I finally relented and paid the 100% advance payment of Rs.67600 (65K + 4% VAT) along with the purchase order on Feb 22nd 2010.
One week later we promptly received the delivery along with an invoice for the amount of 61,360 (59K + 4% VAT).
And there was no sub-woofer! Of course, it was confusing at first. Upon checking with the vendor we were told that the sub-woofer was not in stock, so they invoiced us only for the main system and extended microphones.
Now if you think about it, the Polycom system (SS2 Ex) without subwoofer costs just 36500. But I have to pay 59K for VTX1000 without subwoofer? No subwoofer means, no Polycom HD Voice, and I wouldn't even have bothered ordering it. Who decided the subwoofer is only 6K worth? As I have initially noted, the subwoofer alone kicked up the price up 28.5K.
Therefore we told them it is not acceptable. We asked them to either deliver the whole system or refund the money. They said the subwoofer is out of stock, so we'll have to wait. Meanwhile they asked us to start using the system as is. By this time I had become very suspicious about the deal and asked my staff not to use it until we get the subwoofer. If we have to return, I didn't want to return a used system. So it has remained in the box since then. To sprinkle salt over the wound, they also told us that the warranty starts on the day (March 1st 2010) we received the partial system. In other words, two months of warranty over on the system we are yet to receive fully.
Next 2-3 weeks were spent in email tug-of war between my accountant and an employee from Online Instruments India Private Limited. Strangely enough both had same first name and last name, so it was very confusing to follow that email chain.
Finally the Manoj Kumar from Online Instruments India Private Limited says this on March 17th 2010:
Quote:
Sorry for the inconvenience caused to you.
This is to inform you that we are out stock since last three months .
This is going to take another 15-20 days time we are waiting for the material since last three months.
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This was the first confirmation that they had lied in their quotation. They had promised 7 day delivery when they were out of stock for 3 months. Now it is May and the material has not yet materialized.
By this time we had involved Polycom India and they were part of the email chain. And they added Ingram Micro contacts too into the email chain. So I finally joined the email battle and sent a notice to Online Instruments India Private Limited to either deliver the subwoofer or refund the money by the last week of March.
Ahem, nothing happened by end of March. By this time, through our conversations with Polycom contacts, we had realized that the subwoofer is truly out of stock in India. That means Online Instruments India Private Limited has no chance of delivering it anytime soon. That means refund is the only option left, so we pushed for that. Considering how they had lied in the quotation in the first place, I had no intention of returning the partial system without getting the refund first. So we asked them to refund the 100% amount first and then we will we return the box as we received it. After that nothing has happened for an entire month. Our emails are not answered, phones rarely reach them, they are always out, etc, etc.
Finally we threatened that we will approach consumer court. In response to that, one Mr.Avinash of Online Instruments India Private Limited told us rather casually to go ahead and do it. Looks like they have no concerns about it. Probably they have been this path many times and have no fear of legal threats. Polycom doesn't seem to have much leverage with this rogue dealer.
In a nutshell, I am in a bind. Here is a deadbeat vendor who can neither be forced by the manufacturer (Polycom) nor scared by legal threat to do the right thing. So, what are my practical options?
We are a tiny company, therefore I don't think we can get into prolonged legal battle over Rs.67600/- wasting lot more time and money. I want a quick closure so that we can move on to other solutions.
Is consumer court applicable in this case considering this is a business-to-business deal? If it is applicable, how fast we will be able to settle, and at what cost?