An article on the business methodology of Emseal Joint Systems; Lester Hensley, CEO of Emseal, Pablo Ferreira, Inside Sales Emseal and Max Valverde, International Sales & Marketing. Touches base on misrepresentations made to intentionally deceive.
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Emseal wins-sbane-an-expose
1. Emseal wins SBANE Award : An
Expose
• Published on August 24, 2016
A Westborough-based expansion joint company by the name of Emseal
Joint Systems, was, in May of 2015, awarded the prestigious SBANE
(Smaller Business Association of New England) Award. This is an annual
award given for excellence in diversifying New England-based businesses
through various export channels. It is also provided based on the
superior ability of establishing a network of distributors throughout different
regions around the globe.
As a result of direct contact with Emseal's previous Australian distributor,
SEAL EM (SE), has been provided with important supporting documents
showing that Emseal employs very deceptive trade practices and certainly
practices not worthy of obtaining prestigious awards for exporting. We have
also received information from other parties that this cunning business tactic
employed is one that they have routinely acted out several times prior.
We sat down with the independent Australian distributor for Emseal between
2014-2016, Mr. Bryan Stralow (BS).
SE: Hi and thanks for sitting down with us.
BS: Thanks for having me.
SE: Please, if you will, let us know the events surrounding the
commencement of your relationship with Emseal and, its CEO, Mr.
Lester Hensley?
BS: I made contact directly through Emseal's website back in 2013. After
discussing with Max Valverde , Emseal's International Sales &
Engineering Manager at the time, it was agreed that I would commence
promotions and distribution of their Expansion Joint systems throughout
2. the Australian region. They had already had a presence in New Zealand
but not in Australia.
SE: What were your initial feelings about the matter?
BS: I was very excited. Emseal hadn't really been exposed in the
Australian market so I saw the opportunity to help expand on their
current, albeit limited, industry exposure. I saw it as a great opportunity
to financially secure my family as I have a wife and two young children.
SE: When did you feel like something was awry?
BS: As I have experience in mainly civil engineering, I contacted a
statutory regulator for roads and bridges in NSW (RMS). As a pre-
emptive measure, I asked both Max Valverde and Pablo Ferreira,
Emseal's Internal Sales representative, about the durability of the BEJS
(Bridge Expansion Joint System) type joint material. Pablo's written
response indicated a flawless history with 'no material failures' over all
the installations around the world. He then stated that expected design
life for Emseal is between 25-50 years. Personally, I had trepidation
about the response, but as a result of being informed by an experienced
Emseal representative, I accepted his statement and conveyed it to
colleagues and potential clients.
SE: And what happened next?
BS: Well, we had yet to solidify our contract, but once this had occurred
we really started to push the products. I guess as a result of picking up
interest with ANZ Stadium and others around the country, I contacted
Lester Hensley, CEO of Emseal, and asked for further discussions based
on the heightened level of interest we had experienced in the first couple of
months. Lester then informed me that the durability was not as
previously explained. According to Lester, it was circumstantial and no
standard rule applied to the 'design life' of Emseal products. That was
when I had felt I had been intentionally misled. I had just committed a
large sum of money to the initiation of Emseal's market here in Australia
and apparently their products weren't as explained prior to signing the
contract.
SE: Why didn't you get out then?
BS: Well, if you could picture me committing our life savings and some
money that was provided by my family we really were backed into a
corner. I had effectively signed a contract and had acted out of
excitement and, what it seems now to be, complete naivety. We knew we
couldn't afford to litigate in the US and Emseal didn't have any
tangible Australian assets so therefore we couldn't sue here.
3. SE: So you continued on?
BS: What was our choice? We were left with actively promoting the
products; trying very hard to establish the name here and make back our
money.
SE: Did you achieve that?
BS: We were close. We were lucky enough to attain state government
specification on the new Perth Children's Hospital. After 12 months of
design and commercial discussions, I had asked for Emseal to reinforce
our position to John Holland, the head contractor working on the new
Perth Children's Hospital. I had also requested exclusivity but
unfortunately as a result of Emseal promising exclusivity on a $350K
project here and then, essentially, despite this written promise, cutting
my company out of the well-earned profit, which was
approximately 33%, and going direct to John Holland, we were left
with nothing.
Unfortunately this situation highlights a loophole manipulated by large
corporations exhibiting limitations in international law that relies largely on
good faith. Buyer Beware indeed.
SBA Image courtesy of the US Small Business Administration -
https://www.sba.gov/content/westborough-based-emseal-wins-
massachusetts-and-new-england-sba-exporter-year-award
4. new Perth Children's Hospital Image courtesy of Emseal Slideshare-
http://www.slideshare.net/EMSEAL/whos-using-emseal-
expansion-joints-and-sealants-61714687?qid=f5118cd4-d94f-
47b3-b304-d6ae9c576c86&v=&b=&from_search=2
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• small business development
• international trade and development
• award winner
Seal EM
verbum sapienti satis est
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