Greensboro, N.C. – The relationship between Syngenta, a supplier of pesticides to the golf market, and LESCO, a distributor of many products – including Syngenta’s – to the golf market, will conclude over a transitional period. At the end of this period, which has yet to be determined, the full line of Syngenta products will no longer be distributed by LESCO in the marketplace. Syngenta made the decision May 16.
“After a valued relationship, Syngenta has determined that it’s best for the business relationship to come to a close,” says Bill Lewis, vice president of Syngenta Professional Products. “We appreciate LESCO’s long-time support of Syngenta and its products and services. We have decided, however, that LESCO’s strategies in the marketplace are inconsistent with Syngenta’s.”
“We are surprised and disappointed by Syngenta’s decision,” says Michael DiMino, president and c.e.o. of LESCO. “This change is not something that we take lightly, but ultimately this will prove to be in our customers’ – and the industry’s – best interests.”
The strategies of the companies had diverged, according to Michael Vanausdeln, manager of corporate communications for Syngenta.
“We’re committed to a traditional business model,” Vanausdeln says. “We’re mounting a long-standing strategy of providing high-quality branded products and value to our customers. LESCO is more retail driven. We think more in terms of long-term value and service to the customer. We bring more than the product to the customer. We provide an overall service package. Syngenta wants more one-on-one interaction with its customers.”
“We believe the distributor – whether it is LESCO or another distributor – is responsible for the customer relationship,” DiMino says. “The customer buys from us, gets a bill from us and pays us money. However, Syngenta seems to believe they own customer relationships, and distributors don’t provide value to the market.”
Vanausdeln says Syngenta isn’t fond of LESCO’s store-on-wheels concept unveiled at the Golf Industry Show in February. Syngenta would prefer delivering its products through fewer distribution centers rather than the 281 LESCO service centers and the 65 Stores-On-Wheels located throughout the country.
“Customers, as always, will find Syngenta-branded products readily available through our nationwide network of distribution,” Lewis says. “We remain committed to meeting the complex needs of our customers and to fostering continued growth and stewardship of the industry.”
LESCO has spent more than 40 years building its business, and the relationships it has built results in it having more than 140,000 customers throughout the country, according to DiMino.
“We are confident that our success thus far and these relationships result from the value, expertise and options that we provide to the market,” he says.
Despite the separation, Vanausdeln says both parties are committed to making the transition as seamless as possible and that Syngenta plans to honor all existing contracts.
“The customers won’t see a lot of differences, but there will be some,” he says.
Syngenta doesn’t plan on terminating any other relationships with the more than 50 distributors it has and doesn’t plan to add a distributor to replace LESCO.
DiMino says LESCO currently is talking with other chemical companies to replace the Syngenta business. The company looks forward to working with companies such as BASF, Bayer, Becker-Underwood, Crompton, Dow AgroSciences, Gowan, Kawasaki, Monsanto, Nisus, Nufarm, PBI Gordon, SePRO, Sipcam and Waterbury to replace the discontinued Syngenta products.
Vanausdeln wouldn’t say how much Syngenta product LESCO sells, but says it was one of the largest distributors it had. DiMino says Syngenta products were about 5 percent of the company’s total sales of $560 million.
Syngenta had a partnership with LESCO since 2000 when Syngenta was formed. Some of the former companies that comprise Syngenta had a relationship with LESCO that dated back further than 2000.
Syngenta plans to communicate this decision to end-users, including golf course superintendents, via e-mail, flyers, letters, sales representatives and the media.
“It’s important that were open,” Vanausdeln says. “This wasn’t a quick decision. We considered all the customers in the channel that this would affect. Not one person was responsible for the decision.”
But DiMino and Bruce Thorn, LESCO’s senior vice president of operations, disagree with the decision being quick. Thorn says the company received a call from Syngenta May 13 letting them know Syngenta was coming to Cleveland – where LESCO is based – to discuss their relationship. He says Lewis and Syngenta’s lawyer were among the individuals who told them they had irreconcilable differences and the relationship was over.
“The decision wasn’t in the works,” Thorn says.
Customers can contact their local Syngenta sales representative or the customer resource center at 866-796-4368. To locate the nearest LESCO service center, customers can visit www.lesco.com or call 1-800-321-5325. GCN
“After a valued relationship, Syngenta has determined that it’s best for the business relationship to come to a close,” says Bill Lewis, vice president of Syngenta Professional Products. “We appreciate LESCO’s long-time support of Syngenta and its products and services. We have decided, however, that LESCO’s strategies in the marketplace are inconsistent with Syngenta’s.”
“We are surprised and disappointed by Syngenta’s decision,” says Michael DiMino, president and c.e.o. of LESCO. “This change is not something that we take lightly, but ultimately this will prove to be in our customers’ – and the industry’s – best interests.”
The strategies of the companies had diverged, according to Michael Vanausdeln, manager of corporate communications for Syngenta.
“We’re committed to a traditional business model,” Vanausdeln says. “We’re mounting a long-standing strategy of providing high-quality branded products and value to our customers. LESCO is more retail driven. We think more in terms of long-term value and service to the customer. We bring more than the product to the customer. We provide an overall service package. Syngenta wants more one-on-one interaction with its customers.”
“We believe the distributor – whether it is LESCO or another distributor – is responsible for the customer relationship,” DiMino says. “The customer buys from us, gets a bill from us and pays us money. However, Syngenta seems to believe they own customer relationships, and distributors don’t provide value to the market.”
Vanausdeln says Syngenta isn’t fond of LESCO’s store-on-wheels concept unveiled at the Golf Industry Show in February. Syngenta would prefer delivering its products through fewer distribution centers rather than the 281 LESCO service centers and the 65 Stores-On-Wheels located throughout the country.
“Customers, as always, will find Syngenta-branded products readily available through our nationwide network of distribution,” Lewis says. “We remain committed to meeting the complex needs of our customers and to fostering continued growth and stewardship of the industry.”
LESCO has spent more than 40 years building its business, and the relationships it has built results in it having more than 140,000 customers throughout the country, according to DiMino.
“We are confident that our success thus far and these relationships result from the value, expertise and options that we provide to the market,” he says.
Despite the separation, Vanausdeln says both parties are committed to making the transition as seamless as possible and that Syngenta plans to honor all existing contracts.
“The customers won’t see a lot of differences, but there will be some,” he says.
Syngenta doesn’t plan on terminating any other relationships with the more than 50 distributors it has and doesn’t plan to add a distributor to replace LESCO.
DiMino says LESCO currently is talking with other chemical companies to replace the Syngenta business. The company looks forward to working with companies such as BASF, Bayer, Becker-Underwood, Crompton, Dow AgroSciences, Gowan, Kawasaki, Monsanto, Nisus, Nufarm, PBI Gordon, SePRO, Sipcam and Waterbury to replace the discontinued Syngenta products.
Vanausdeln wouldn’t say how much Syngenta product LESCO sells, but says it was one of the largest distributors it had. DiMino says Syngenta products were about 5 percent of the company’s total sales of $560 million.
Syngenta had a partnership with LESCO since 2000 when Syngenta was formed. Some of the former companies that comprise Syngenta had a relationship with LESCO that dated back further than 2000.
Syngenta plans to communicate this decision to end-users, including golf course superintendents, via e-mail, flyers, letters, sales representatives and the media.
“It’s important that were open,” Vanausdeln says. “This wasn’t a quick decision. We considered all the customers in the channel that this would affect. Not one person was responsible for the decision.”
But DiMino and Bruce Thorn, LESCO’s senior vice president of operations, disagree with the decision being quick. Thorn says the company received a call from Syngenta May 13 letting them know Syngenta was coming to Cleveland – where LESCO is based – to discuss their relationship. He says Lewis and Syngenta’s lawyer were among the individuals who told them they had irreconcilable differences and the relationship was over.
“The decision wasn’t in the works,” Thorn says.
Customers can contact their local Syngenta sales representative or the customer resource center at 866-796-4368. To locate the nearest LESCO service center, customers can visit www.lesco.com or call 1-800-321-5325. GCN
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