EMKAY INC: New Player in Old Scam?

July 29, 2004 by
Filed under: Uncategorized 

Every day I get faxes from companies trying to sell me something. This is why I keep a trash can right by the fax machine. For the most part they are ignored, not even read. But every once in a while something oozes out of that fax machine that just can?t be ignored. Has anyone else out there received this wonderful offer from a company called EMKAY?

EMKAY is one of those companies that ?manage? things. In this instance they manage about 40,000 fleet vehicles for corporate clients. Sounds like important work, doesn?t it. Their fax was a solicitation to sign our shop up on their ?preferred vendor network.? They wrote, ?We have selected your organization based on the amount of quality work your business provides to customers across the nation.?

Forget that our company is just a local dealership and does not service people across the nation, but how could they possibly know if we do quality work? The fax continues, ?Our qualified adjusters are courteous, knowledgeable and are ready to accommodate the needs of our clients and our preferred vendors.? Hmmm?..is lubrication supplied, or will I be needing the services of my proctologist afterward?

EMKAY goes on to tell me they are willing to refer their vehicles to us for repair, but in return, ?we request a discount off the total price.? Mmm hmm, thought so. All I have to do is sign the attached agreement and fax it back to them, and viola!, the referrals will automatically begin.

The agreement was an interesting read. Basically, it read much like a typical DRP agreement, only worse. This was my favorite part: ?Supplier authorizes EMKAY to deduct a Preferred Network Membership processing fee of ten percent (10%) from the total of the invoice at point-of-sale credit card machine payment processing, which is over and above any preexisting discounts or arrangements.? Oh, and you have to hold EMKAY harmless against any claims, complaints, lawsuits, etc. WHAT A FREAKIN DEAL!

The real sad thing about this company and this agreement is that there must be shops signing up for this crap or EMKAY wouldn?t be in business. Now I know many of you are smiling right now, thinking ?what idiot would sign this thing.? But I also know there are a bunch of you who have signed this thing and can?t figure out what the problem is. Let me break it down for you.

First, lets make fun of those of you who have actually signed this thing and are giving these clowns at EMKAY 10% discounts off the entire bill. What kind of crack are you smoking? The average net profit for body shops in this country is less than 10%. I have to ask you people, do you know your cost of doing business? Unless you are clearing 20% after all bills are paid you simply can?t afford to give away 10% of your net. And even if you were clearing more than 10%, are you happy making a fraction of your normal net profit? Are you that desperate? Are you whores?

And that leads me to your answer. ?Yeah, we give EMKAY 10% off the invoice, but we inflate our bill before the discount so we don?t lose anything.? What are you people running now, jewelry stores? Furniture stores?

Here?s what really bothers me. Do you think EMKAY really believes you can make a profit while giving them 10% of the bill? Do you think EMKAY has no idea that you are inflating your bill so you both can share in the riches? Isn?t this stealing from the corporations that are paying EMKAY to ?manage? their fleet vehicles? Isn?t this fraud? Has EMKAY no shame? Have you no shame? Since the corporations that own these 40,000 vehicles are the one?s who ultimately pay the bill, you are conspiring with EMKAY to overcharge these corporations. I haven?t seen the contract EMKAY has with the corporations, but common sense tells me they have promised all costs for ?managing? their fleets would be taken from discounts by body shops. But who knows, maybe they operate like auction companies and charge both the seller and the buyer. That would be even worse.

I?ve said it a hundred times, this industry will never get out of the cesspool it is in as long as shop owners continue to run their businesses like mobsters. This bait and switch, cost shifting, lying, cheating, stealing, bondo brain mentality is exactly why you are only getting $40 per hour while mechanical shops are getting nearly twice that.

The next time you get one of these idiotic offers, do what I did with mine. Write a bunch of childish comments on it and fax it back to them. Have some fun with it and save some evil, greedy corporation a bundle of money.

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5 Comments on EMKAY INC: New Player in Old Scam?

  1. Same idea different name. on Fri, 30th Jul 2004 7:16 am
  2. I’m a Dupont Certified Commercial Refinisher.
    I received the same idea and a hard sell from a company called Fleet 1st. Ltd.
    Exact same type of program and this one is sanctioned by Dupont.
    I opted out.

  3. Scott Barelmann on Fri, 30th Jul 2004 9:49 am
  4. You said it right John! There will be a whole bunch of people accross the country jumping right on this bandwagon! IDIOTS!!! Then they will complain to everyone that will listen the insurance companies are robbing us blind, and they can’t figure out why they are not making any money. In fact, anyone that goes with this type of program, let me know! I’ll sublet my work to you for the same program. I’ll make a lot of money, and I don’t have to have any liability. WHAT A DEAL FOR ME!! Anyone recommend a good real estate agent in the Bahamas, cause I’m going to need one if this works out.

  5. TLC on Sat, 31st Jul 2004 5:42 am
  6. Great comments!!!!!!!!You are exactly right. What a cesspool we operate in. It has been created by our own industry for the insurance companys and big business to feed on. The majority of shops still operate as if they are a bunch of back room bookies. The corruption, dishonest and ilegal ways of many shops operations is exactly why this is an oppressed industry under the control of 3rd parties.
    We will never operate in a free market with out the influence of the insurance companies as long as this mentality is so prevelent in our busineses.
    I know we do not live in the "Ozzie and Harriett world" we may like to but, basic values of character,integrity and common business sence seem to be lost by
    some shops. So the cycle of low labor rates , furhter corruption
    and insurance industry domination continues.

  7. Mike at Economy Auto Repair, Paint & Body Shop on Sat, 18th Sep 2004 1:44 pm
  8. Wow, talk about de ja vue,,, several years ago I did a lot of fleet business, with several accounts of 20 vehicles or more.Oh my,life was sweet!! My shop had a great relationship with the managers of these fleet accounts and stayed on the company line, " we will give you great service at competitive prices using quality parts because we both know that it costs you more to be down than to pay for our service." And they would agree. But, this had to come to an end…one by one, ALL of my fleet accounts were taken over by these management companies. We now had to bid and needed three estimates for repairs that we used to get automaticly. Scheduled maintenance became a thing of the past, and the dreaded 10% off the top soon came into play. We were operating on an average 25% profit margin on parts for these fleet accounts, there was not 10% to give. The real secret of the management companies is that there will always be some idiot to work for less that will prove their point. And the new shop will work until the first comeback or until the "real" customers cant get to the shop doors for all the flood of discounted fleet work. Be careful,, all you readers… just say no… and one day this will be no longer an option. Run your shop to make the profit you deserve, and these management companies will disapear… Mike Norvell Sr

  9. Jackson F on Mon, 26th Sep 2016 4:43 pm
  10. Interesting. I haven’t had a fax machine for years. But I can see how they could receive all sorts of spam. I wouldn’t be able to take it on a daily basis. Love my email auto filters is all I can say.

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