Warn a Distributor Under Your Supervision • Example Letters, Plus Guides and Samples
When this letter becomes necessary, it is important that you express your concerns in concise, specific, and polite language. Explain what your expectations are and how the distributor is not meeting them. Avoid condescending comments or expressions that may be taken as personal insults.
How to write this reprimand letter:
- Review the conditions and requirements for being a distributor.
- Supply the details of the problem in question, and explain the consequences if the distributor does not resolve it.
- Close with a positive statement of hope and confidence.
Example Letter #1
You may recall that our distributor agreement states in Section A (2), that to qualify as a distributor you must maintain an average of at least 50 cases of tennis balls in stock. A review of your last four months' orders shows that you are averaging only 35 cases. There may be some reason for this, including a simple misunderstanding of the terms of our agreement. However, in order to keep your distributorship, you must increase your stock to 50 cases this month.
I hope you are able to comply. I have enclosed an order form for your convenience. If there is any problem, please let me know. Doe Corporation does not want to lose you as a distributor.
Example Letter #2
I enjoyed our discussion in January about increasing the circulation of our text from 200 to 250 upper division institutions. As I understand it, circulation remains constant at 200. I feel six months is ample time to engage 50 more universities or junior colleges. If you wish to continue your current contract, please send me a list of 50 additional upper division institutions that will use the text. I need the information by the end of July. Thank you for your quick response.
Example Letter #3
In order to maintain the terms of our contract, you must sell a minimum of forty cosmetic items a month. Your charts indicate that you sold fifteen items in March and twelve in April. Obviously, this is well below the agreed contract terms. If you are unable to raise your sales, we will terminate your contract.
Please respond immediately by increasing your sales this month!
Example Letter #4
As you realize, the terms of your contract indicate that every six months you must locate one major vendor with the ability to sell 1,000 units within five months. You have not complied with these terms for the past year. As a result, you position as a distributor is in jeopardy. Locate a vendor within three months or we will have no choice but to regard your inaction as a breach of contract. We sincerely hope you are able to resolve this matter speedily and successfully.
Write Your Letter Step-by-Step
1 Review the conditions and requirements for being a distributor.
Sample Sentences for Step 1
- As our general agreement stipulates, you must maintain at least 350 units to be considered a distributor for our product.
- You may recall that authorized distributors are expected to ship a minimum of twenty units per week.
- In our phone conversation last week, you said you would find at least two new vendors for our product and try to find a more economical facility for storage of the compressor replacement parts.
- The Doe Company has established the following guidelines for their distributors:
1. Shipment of at least 20 units per week
2. Maintenance of at least 100 units
- Our licensing agreement stipulates that you will have a minimum of four local vendors for our line of products.
Sample Phrases for Step 1
- a minimum of
- according to our distributor guidelines
- am sure that you realize
- are expected to ship
- are responsible for
- are required to maintain
- as our agreement stipulates
- developing your area
- distributors must maintain
- expected standard of performance
- have established the following guidelines
- in order to maintain profitability
- in our last conversation
- licensing agreement stipulates
- may recall that
- mutually beneficial relationship
- need to call your attention to
- our distributor standards mandate that
- sole distributorship status requires
- standards for maintaining distributor discount
- to receive our distributor discount
- to be considered a distributor
- would like to remind you of
2 Supply the details of the problem in question, and explain the consequences if the distributor does not resolve it.
Sample Sentences for Step 2
- Our records show that you have maintained a stock of 175 units, instead of the required 250. If you are not able to comply with the standard of 250 units, your status will be reduced from a distributor to a vendor.
- For the first six months that you distributed our products you exceeded our expectations. Since then we have seen a 30% decrease in your shipments. What has happened? Please let us know what the problem is. We are eager to help, and we want you to succeed as a distributor.
- If you are not able to maintain this level of activity, you will no longer qualify to be a distributor. We would hate to lose you. Let us know how we can help.
- We suggest you get in touch with the stores I have listed below. They have been customers in the past and may be interested in becoming full-fledged vendors.
- We hope you can recruit more vendors in the near future so your shipments will still qualify you as a distributor. We will reevaluate your status in three months.
Sample Phrases for Step 2
- after your initial success
- after your initial progress
- decline is a source of great concern
- failure to follow-up on
- has not been beneficial to
- have seen a significant decrease in
- have discussed your current volumes
- if you cannot maintain
- if you are unable to
- improve your level of activity
- loss of distributor discount
- maintain the standards of
- maintain this level of activity
- our records show that
- over the past few months
- please let us know
- regret to notify you that
- to comply with the standard
- want you to succeed in
- would be happy to help
- your status will have to be changed
3 Close with a positive statement of hope and confidence.
Sample Sentences for Step 3
- We hope that you can find new customers in your area. Please feel free to call us if you need more sales materials. John Doe lives near you and can give you some tips.
- Please give me a call so we can discuss the situation in more detail.
- John will be happy to help you locate a newer storage facility that would be more suitable to your needs.
- Call me if any of these contacts work out for you.
- I am confident you will see an increase in sales if you stick to the basic five-step program we have outlined.
- We are eager to continue doing business with you. Please let us know what we can do to increase your customer base.
Sample Phrases for Step 3
- am confident that you will
- continue doing business
- discuss the situation
- do all we can to help
- fell free to call us
- focus attention on
- have a proven program to
- increase your customer base
- let's set up a meeting
- loss of this equipment line to
- keep our arrangement intact
- maintain your distributor status
- maintain your discount structure
- mutually profitable situation
- plan our strategy to
- prevent this loss to your
- to be reinstated as a
- will be happy to help you to
- will be happy to work together with
- would you give me a call