Konica Minolta's Dishonesty

In474

Member
by Kim Vinh Luong


When shifting from “Specialized in book sales and book sales only to Digital printing”, Saigonbook has chosen to purchase Konica Minolta’s Digital Printers with a belief that a new machine of a well-known company will be ensured about quality and price.

On August 15, 2014, Saigonbook signed a contract to purchase a C1070P printer of Konica Minolta via Konica’s commercial agent, Sao Nam, with the price of $61,395. While Saigonbook is having a trial run of the C1070P printer, Konica Minolta Business Solutions Vietnam Co. Ltd (KMV) and Sao Nam suggested the company the Printing Shop model which was popular in Europe and North America.
Price C1100 of Sao Nam  -Digital Printing Konica Minolta.jpg
Price C1100 of STS - Digital Printing Konica Minolta.jpg


KMV and Sao Nam promised to help Saigonbook to build the first Printing Shop in Vietnam at the prime location of Saigon Book Center. On October 20, 2014, Saigonbook signed a contract purchasing the C1100 printer from Sao Nam with 20% discount. According to KMV’s design consultancy, Saigonbook converted Saigon Book Center into a Printing Shop with the typical blue color of Konica Minolta. KMV attached the signboard "Printing Shop - Take a step ahead with Konica Minolta's Digital Press" at Saigonbook’s head office and promised to sell ink, materials and supply services at preferential prices. KMV also gave Saigonbook an UPS worth about $7,000 as a promotion gift.

However, after putting these 2 printers into operation, Saigonbook realized that their printing price was much higher than the market price and found out that they was cheated right from the first printer.

Sao Nam sold the C1070P printer at $61,395 while Saigon Technical Resolution (STS) offered the price of $35,349; Sao Nam sold the C1100 printer at $158,563 while that of STS was $59,953. The total difference in the selling price of these 2 printers was $124,656.

In order to prove KMV and Sao Nam’s dishonesty, Saigonbook assigned employees to act as different customers to collect proofs about their dishonest quotation. As a result, they have found out that with the same C1100 printer and at the same time, KMV made quotations of $153,488 and $102,325; Sao Nam made quotations of $180,139 and $93,023; STS made quotations of $79,069, $83,720 and $88,372; Sao Nam An made a quotation of $180,140.

Not only did they cheat on price, KMV and Sao Nam also cheated on warranty policy when they only offered the warranty period of 1 year for C1100 and C1070P printers instead of 3 years and 5 years, respectively, as in Konica Minolta’s warranty policy.

After collecting enough proofs, Saigonbook required Sao Nam and KMV to take back these 2 printers and repay the settled amount. On August 6, 2015, Sao Nam’s representatives and the Lawyer Nghiem Quang Bui visited Saigonbook’s head office and agreed to take back the printers and make full repayment. On August 14, 2015, Sao Nam and KMV recalled the C1070P printer and fully returned $61,395 to Saigonbook. However, on August 18, 2015, Sao Nam proposed taking back the C1100 printer with a sales contract which was denied by Saigonbook because Saigonbook thought they “Return the printers, not sale”.

It was more disgraceful for Sao Nam and KMV that after failing in repurchasing the printer, Mr. Tadasu Ichino – the General Director of KMV authorized the Lawyer Net Le to send documents to Saigonbook, Thanh Nien newspaper, Tuoi Tre newspaper and Saigon Businessman newspaper to deny their responsibility with the excuses: "KMV has not had any contractual relationship with Saigonbook" and "At different point of time, the quoted prices are different"; but when Saigonbook showed the proofs about their dishonest quotations and the contract KMV signed with Saigonbook pursuant to the regulations in Article 24 of the Commercial Law, KMV and Lawyer Net Le had nothing to say more!

To understand KMV and Sao Nam, Saigonbook had to collect proofs, link their words, behaviors and documents together and compare to other partners to draw the conclusion that the reason for the differences in price quotation and warranty period was their dishonesty.

KMV and Sao Nam cooperated with each other to cheat Saigonbook by first pushing the price higher, the giving discount price and UPS as promotion gift. An honest company could not “swallow” such an illegal profit of $124,656 from only one deal and “shorten” the warranty period from 3 years to one year in many other deals. KMV, Sao Nam and their Lawyers had nothing more to say because such a “swallow” was an unjustifiable crime.

Note: $1 = VND21,500. If you need any additional assistance, please contact me.

 
You've already posted this once on the forum. Honestly, KM has every right to charge whatever they want for each machine. I realize that you live in a different part of the world, but with a lot of members here being from the US, we totally understand what KM is doing. They had a company that was willing to pay the price, so that's what they charged. Law of supply and demand. Also, pricing based on what the market will bear. I guarantee just about every printer here in the US has charged certain clients a higher price for certain jobs. It might be based on a number of things such as how good of a relationship they've had, companies financial history, or just they're a wealthy company and you know you can get more. Either way, what I'm trying to say is that it might be illegal in your country, but on here, most of us believe a company can charge whatever they feel like and the market decides if they survive or not.
 
Maybe in the US you see such a free for all and the "there is one born everyday" mentality, but are there no restrictions to keep prices within reasonable brackets? I think even in the US the Sherman antitrust act would tear them a new one.
 
Last edited:
For the most part, no, the US does not have laws regarding charging different prices for the same product, or as what the OP is going for, Price Gouging. We have laws about raising prices to extremes during emergencies and such. The Sherman antitrust is mainly against monopolies. From what I remember when studying the act, the only thing that has to do with pricing is the collusion sections. If we in the US had to worry about being sued over pricing during everyday activity, then we would not be In a free market system. Our market is based on what people are willing to pay.
 
For the most part, no, the US does not have laws regarding charging different prices for the same product, or as what the OP is going for, Price Gouging. We have laws about raising prices to extremes during emergencies and such. The Sherman antitrust is mainly against monopolies. From what I remember when studying the act, the only thing that has to do with pricing is the collusion sections. If we in the US had to worry about being sued over pricing during everyday activity, then we would not be In a free market system. Our market is based on what people are willing to pay.
I get your point, it just seems to me though it´s a bit like taking candy from a baby and begs the question of how free can or should a free market be if a company can legally pull you over the table like described in the OP´s post.
 
Last edited:
Thats why, here in the US . . . we have a saying that business owners really need to pay attention to . . . .

"LET THE BUYER BEWARE"

You need to do your homework before committing . .. currently we have Xerox offering us one price and a third part seller for Xerox is giving us a price for the same machine and specs that is about 5% lower . . . . but we are doing our homework and making an informed decision.
 
Thats why, here in the US . . . we have a saying that business owners really need to pay attention to . . . .

"LET THE BUYER BEWARE"

You need to do your homework before committing . .. currently we have Xerox offering us one price and a third part seller for Xerox is giving us a price for the same machine and specs that is about 5% lower . . . . but we are doing our homework and making an informed decision.


And after you sign the deal and shake hands with the vendor don't forget to count your fingers.
 
Geeze! (to the OP): You made a bad deal as a result of failure to do your due dilligence and homework. It happens. Get over it!
 
Thats why, here in the US . . . we have a saying that business owners really need to pay attention to . . . .

"LET THE BUYER BEWARE"

You need to do your homework before committing . .. currently we have Xerox offering us one price and a third part seller for Xerox is giving us a price for the same machine and specs that is about 5% lower . . . . but we are doing our homework and making an informed decision.


Don't do the third party. We made the mistake of that a couple years ago and are still paying the price. Crappy service, not sending needed supplies etc. We have a couple machines with Xerox now and have had no problems with Xerox.
 
KONICA MINOLTA BEEING IN COURT
Konica Minolta Business Solutions Vietnam Co. Ltd (KMV) has been ordered to appeared in court by Viet Nam Ho Chi Minh City District 3 People's Court to participate in the proceedings as "people who has related rights and obligations" with commercial agents Sao Nam in cheated case of selling C1100 digital printers for Saigonbook.
for more information please read “KONICA MINOLTA'S DISHONESTY“ at the link: http: //innhanh474.com/tin-tuc/tin-moi-293/konica-minoltas-dishonesty-2-3639.htm?p=1
 
Oh boy! Are we going to get a play by play posting of the court case? It'll be as exciting as watching court TV!
 
Just one more reason I love this great country called the United States of America.
 

PressWise

A 30-day Fix for Managed Chaos

As any print professional knows, printing can be managed chaos. Software that solves multiple problems and provides measurable and monetizable value has a direct impact on the bottom-line.

“We reduced order entry costs by about 40%.” Significant savings in a shop that turns about 500 jobs a month.


Learn how…….

   
Back
Top