9. STRAW POLL: FEN Books and Equipment Contract

[Michael von Keitz]

At the moment, the FEN contract is month-to-month. Please use the straw poll above to indicate whether you support a formal contract extension, or whether you would prefer an RFP go out. This will help to inform executive deliberations.

[Ellen Nadeau]

Hi Michael, as my son owns the FEN store, I believe I am in conflict of interest on this item and cannot vote.

[Ellen Nadeau]

I believe I should make one clarification because the options don't seem to clearly present the procedures. It is my understanding, that prior to issuing an RFP, the CFC would need to cancel the current agreement with FEN.

[Michael von Keitz]

Hi Michael, as my son owns the FEN store, I believe I am in conflict of interest on this item and cannot vote.

Thank you for declaring your conflict. Do feel free to contribute to discussion.

[Michael von Keitz]

I believe I should make one clarification because the options don't seem to clearly present the procedures. It is my understanding, that prior to issuing an RFP, the CFC would need to cancel the current agreement with FEN.

As a straw poll, the recommendation isn't binding. If the executive does go to an RFP, however, it will be done in consultation with FEN to ensure the end of one contract flows into the beginning of the next.

[Fred McKim]

I will probably have more to say about this as the meeting goes on. however a few quick words...

The Nadeaus have a chess business in Northern Ontario and were selected as our 1st Contracted chess Equipment suppliers. We take orders and then send the information to them and they send out the orders under the "CFC brand name". Their main other business is with schools in their area, and we have agreements in place that they will not approach under their own name, customers the CFC sends.

They patiently put up with the problems we had getting the store up and running last year, and had practically no sales from us for, I'd say 3-4 months.

So we have the following recent scenarios.

1. An RFP was put out for the new web site. A committee made a recommendation and the Executive and then Governors approved it.

2. The management contract was up and we parted ways with the prior managment company (mutual decision). We had an offer from another company that was retaining the services of Gerry and this became a "no brainer" and was approved by the Executive.

3. Our magazine editor resigned from his position and we put out an RFP for I think a two year posting, which I believe was modified to a one year posting at the time of hiring. This was decided on by the President.

4. I have to reread our contract with FEN, but they do require either a one or two month notice. In this case they are willing to stay on under our present operation terms, so it is up to decide if we are satisfied and wish to continue dealing with them month to month, under a new contract, or put it out to RFP that could still result in them coming back or allowing a new player to enter the picture. We know that Strategy Games are interested. I believe the president (at the time) selected FEN initially, but I could stand corrected on that point.

[Egidijus Zeromskis]

We take orders and then send the information to them and they send out the orders under the "CFC brand name". Their main other business is with schools in their area, and we have agreements in place that they will not approach under their own name, customers the CFC sends.

Who does any active marketing? I assume all schools are potential customers, and especially those who have clubs to renew their equipment.

[Christopher Mallon]

I would much rather see us give up this in-between method of having a "store" that we are currently doing.

That doesn't mean I want to see us abandon FEN necessarily.

What I would like to see is a company that is the "Official Supplier of CFC Equipment" - authorized to sell CFC-branded materials (perhaps with approval). Our site redirects users to their site, and perhaps we afford them some advertising as well.

I want to avoid this "we take the orders, they fulfill them" thing - it's just extra work.

I was in on the discussions that hired FEN in the first place. CMA also had an offer in. The FEN offer was slightly larger financially and also had nicer terms as far as who does what work. Of course our website problems have cost them (and us) virtually any profit to be had over the term of the deal.

Anyway, is there any support for doing an RFP for my "Official Supplier" concept?

[Bob Armstrong]

Hi Chris:

I don't think we should be in the equippment/supplies business at all.

I'd prefer an advertising/referral commission arrangement, as we have for the bookstore with Amazon. It's little revenue, but no work and hassle.

Do I have any support to pursue this, rather than the other two options now on the table ( looking for a supplier ; endorsing certain products )?

Bob A

[Christopher Mallon]

Hi Chris:

I don't think we should be in the equippment/supplies business at all.

I'd prefer an advertising/referral commission arrangement, as we have for the bookstore with Amazon. It's little revenue, but no work and hassle.

Do I have any support to pursue this, rather than the other two options now on the table ( looking for a supplier ; endorsing certain products )?

Bob A

Bob, what I'm suggesting is even easier than what you are suggesting, and provides a steady, predictable income.

Simply find someone willing to pay $xxxx per year to be our official supplier. You won't make nearly as much as you would on other options, but there's no real risk to the CFC and the income is steady.

We in fact were talking about this kind of a deal with the CMA in 2005-2006 but as part of a much larger deal including ratings. Also at the time we had a much better bargaining position as we ran our own store.