Letterbox Companies and More of the Same … (Series) #4

Come and work for me – make me rich!

The following experience of mine is one I consider a display of particularly bold behaviour. It will be the last article of my series (Serie) on corruption for the time being. But it was definitely a very attractive offer and it was by no means easy to say no.

What happened did not happen as long ago as what I related in the other three articles. My memory is of it happening early or in the middle of the 1990ies.

At the time, we were a respected and also well-known supplier of support and service for products of the best hardware and software producers. We provided service and support their customers in the name of the producers. As a general rule, both parties behaved like good partners, which made for nice “win-win” situations.

During those days, new enterprises with special software solutions in the service and security fields grew like comets, both in the USA and other countries. And, of course, it was our goal to service different producers and all varieties of technologies. After all, we wanted to have a broad range of products on the market and thus remain independent from individual producers.

One day, as a total surprise, a famous and very successful technology provider called us, asking if we were interested in servicing exclusively their products in huge parts of DACH (Germany, Austria, Switzerland).

Es ist immer schön, wenn das Bargeld in der Kasse klimpert.
It is always nice to hear money jangling in the box.

Of course, this sounded fantastic. Today, I know that you always want to be sceptical if you get this kind of offer, because in entrepreneurial reality, miracles just do not happen (or if, then very, very rarely). And if they happen, there is (always) something (very much) wrong. As a meeting point – surprise, surprise – they proposed the lobby of an airport hotel.

We were curious and wanted to test the chance by all accounts. So we agreed to the appointment. And it was all true. The Europe support head of the enterprise welcomed us very kindly and hospitably and told us convincingly why he had chosen our enterprise as a candidate for a future partnership. He offered to hand us the service for his products and customers exclusively for a very attractive region. The necessary training of our colleagues for his products was offered for free, we only had to provide the time. It all sounded like a new and wonderful partnership.

Then came the glitch. Our business partner pointed out that, with such a model, we would have no sales costs and could still realize excellent prices. After all, all the orders would come directly from and be paid for by his enterprise. Consequently, it would be only fair and in no way against our interests if we paid a 10 per cent sales fee for all the turnover with our new customer. We would get invoiced at regular intervals from a sales enterprise in Switzerland and all we would have to do is pay on time.

We asked for time to consider and drove back home. And then, with a heavy heart, because the turnover we missed was absolutely relevant, we rejected the offer. Incidentally, the company in Switzerland was also some sort of letterbox company. Who knows where the money ended up.

During my rather long professional career, I witnessed quite a few very definite kick-back transactions. Mostly, persons from the middle management of rather famous and also German enterprises expected a “little back” from their service providers – and received it, too. Mostly, this was also done through letterbox companies. But I never knew such a bold procedure as the one I just told you about.

RMD
(Translated by EG)

P.S.
I took the picture from Wikipedia. 
About bank notes: Hermann Eidenbenz for the Deutsche Bundesbank. Coins by various artists for the German Federal Republic – bank notes: edited by the Deutsche Bundesbank. Coins: edited by the Federal Republic of Germany, PD-Amtliches Werk.

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