Gray Market Distributor Workshop

Transcription

1 Gray Market Distributor Workshop Updated October Eaton Corporation. All rights reserved.

2 Agenda Definitions Gray Market Counterfeit Cutler-Hammer brand evolution and awareness Distributor and user risks Recognizing suspicious products Aftermarket / gray market sales tools Classic breakers Breaker Service Center

3 Gray Market Definition: The sale of products by unauthorized sources (i.e. those with no relationship to the manufacturer of the goods). Related: Unauthorized dealers sell new, used, surplus, and refurbished electrical products to end customers and distributors. Undermines channel relationships and policies while taking advantage of a manufacturer s installed base and brand A high risk product source that tarnishes the reputation of the electrical industry

4 Counterfeit Definition: An imitation intended to be passed off fraudulently or deceptively as genuine. Related: Bargain priced knock-offs; common with watches, handbags, golf clubs and now becoming prevalent with electrical products Counterfeits are unsafe electrical products that are especially risky for the distributor, contractor, and end user Unauthorized dealers tend to be the source of counterfeit products, knowingly or unknowingly, due to product sourcing practices Anti-counterfeiting legislation enacted in 2006 Sanctions against those who traffic goods bearing counterfeit marks and those who traffic counterfeit trademarks and certification marks Mandatory forfeiture and destruction of counterfeit products

5 Why avoid gray market suppliers? Channel policy prohibits sourcing Eaton products from the gray market Unknown product origins, used, surplus or counterfeit products may be misrepresented as new Altered products can be difficult to detect Eaton assembly warranties can be voided Safety and liability

6 Applications & Brand Awareness All Require New Circuit Breakers Life Extension of Existing Equipment Westinghouse Cutler-Hammer Challenger Electrical Upgrades Tennant Improvements

7 Risks for Distributor Reputation Customer downtime Customer assumption of new, genuine products Financial liability Margin erosion Decreased value

8 Risks for End Users Voided warranties Eaton does NOT warrant product purchased from unauthorized sources and use of that product in an Eaton assembly also voids the assembly warranty. Safety / liability 30% of all fires are electrical in nature Breakers from unknown sources may be damaged, defective, mislabeled, or counterfeit which can lead to serious injury. Premature equipment failure Downtime / delayed installation Lost revenue, productivity, customers

9 Why buy from the manufacturer? Manufacturer s warranty Traceability to original manufacturer and facility No counterfeit, reverse engineered or used parts Product tested to original proprietary design standards Technical and application support

10 Channel policy In order to assure customers that products trademarked Cutler-Hammer are unused and genuine, distributors will only promote, stock, and sell Cutler-Hammer trademarked products and parts that are sourced directly from Eaton Electrical, Inc. The re-sale of Cutler-Hammer trademarked product not sourced directly from Eaton may result in cancellation of the distributor agreement.

11 Suspicious Product Recognition Missing UL Sticker - product is likely imported illegally and is NOT certified to meet U.S. electrical codes Missing Date Code Date code is printed on label. Label tampering attempts to hide age of circuit breaker Factory Seals/Bar Codes Broken or Removed - product has been tampered with and has no warranty or guarantee to meet performance specifications Mislabeled Product to Change Size/Type product has been tampered with causing a possible misapplication and a safety hazard. Current label design example shown

12 Suspicious Product Recognition Old Westinghouse or Challenger Label these products have not been produced since 1999 and 1997 respectively. Old Date Code - any product over two years old no longer has any factory warranty Low Quality Labeling and/or Misspelled Words - product is likely a counterfeit and made with substandard materials and workmanship. Not in a Carton or in older White Cartons product is used, surplus and/or out-dated. Classic label design example shown

13 Sales Tools Gray Market Toolkit on DRC Point-Of-Purchase Materials Sales Aids Interchangeable desk mat Counter stand insert Gray Market & Counterfeit Awareness tri-fold brochure Replacement Breaker Module (RBM) Competitive pricing on over 150 common replacement circuit breakers Electrical Aftermarket Products & Services catalog

14 Aftermarket Products & Services Catalog Catalog contains 100+ pages of breaker history, replacement guides, classic breakers, and cross references Many classic Cutler-Hammer and Westinghouse breakers are still available including Seltronic, Mark 75, MCPs, Current Limiting, Panelboard Replacement, and numerous frame types such as JA, KA, LA, MA, JB, KB, LB, NB, PB, LAB, and LBB

15 In Summary Eaton s trademarked products from authorized distributors will be new and genuine and backed by Eaton factory warranty Distributors source products directly from Eaton for any Cutler-Hammer, Westinghouse, or Challenger opportunity Eaton supports its aftermarket with many tools, products, and services The gray market is not worth the risk Report suspicious activity for investigation UnauthorizedProducts@eaton.com Thank You