i just want to clarify a couple of points about the...

i just want to clarify a couple of points about the negotiation/terms/guarantee issues.

In my case, there has been no guarantee in place for over 5 years for the business and none under my name for 9 years. The discount trading terms were already reduced as part of the Pfizer issue. We have no extended credit and is not involved in the special deals that caused sigma issues with rewards points and imaginative finance. We have a loan by a local regional bank, supported by mortgages on our residential properties and a valuation for the business.

API can and should set their discounts based upon what level they need to be profitable and competitive.

They were happy to give me x discount pre-pfizer. x being between 4.5 and 6.5% After the Pfizer withdrawal they reduced this discount by 1% (x-1%). I understand and accept that.

I was interested in the other benefits that Pharmacy Alliance can offer. The discount that I receive on API goods under this deal is less than what I was receiving but the other advantages compensate. (I understand that it may cost API more as some is undoubtably skimmed off the top) I only joined one week before this blew up.

Pharmacy Alliance is apparently tendering to see who can give them the best offer. Councils, companies, the NBN even do this as a standard part of practice.

API response was to contact me then direct and say all terms will cease in two days, however as you are a valued customer if you join our group we will maintain your terms otherwise your discount of x-1 become zero.

My response was that I will not make a decision under duress, I am happy to continue with API and consider your offer if you continue some form of discount even if it is x-2 until the tender is finalised and was told it is not negotiable and my order on Sunday had 0% applied.

If the Seven Eleven petrol chain puts a tender out for supply of petrol. Say Shell currently sells them petrol at $1.40 per litre, and they tender to Shell and Caltex. Would Shell say I don't like this and contact each Seven Eleven store and say come Monday your next delivery is $1.50 per litre unless you ditch your association with Seven Eleven and sign with us. If Caltex comes in and says well I can deliver on Monday for $1.40 per litre instead and you can stay Seven Eleven wouldn't you just change suppliers.

No one has said that API has to offer more than what they had already been prepared to offer. This is a chance for API to tender what it wants to. It could be a lesser discount. But to offer NO discount and ignore 16% of your business and "will" it away to a competitor does not seem to make any sense to me, but I am a simple retailer.

When someone bring in a prescription for which they have received a quote for from down the road, I decide if i will beat it, match it, come close or hold my usual price. I don't turn to the customer and say I don't like you shopping around, get it filled at my usual price now and commit to only come to me from now on or I will charge you 5% more if you come back, take it or leave it. If I did my customers would think I had lost the plot and tell their friends.

What is bullying to the recipient may be seen as good business sense by the one initiating the action. Does Woolies and Coles bully the Milk producers, its interpretative.

This will probably be my last post on the forum as I do not hold stock, by no means interpret that this means in a financial sense API may not be a good buy. It depends on the price, the upside and risk/return equation. I often try to buy stocks at their worst and wait for them to come good.

I only started posting as there has been no mainstream coverage, no announcements to the market and it could affect not 2-3% but according to the article 16% of revenue.

Take my view as that of a disgruntled ex-customer and treat it accordingly.