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Re: It's about to hit the fan...NO, it IS hitting it  Bruce Warren
 Mar 01, 2003 20:36 PST 
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Paul,

You have to play the game. Now is the time to announce a price increase, effective, say, April 15th. You have to make it all very proper, press release, new price list with schedule of quantity discounts. Fit the quantity discount breakpoints to match the numbers you stated below to encourage a bigger order. Make it read between the lines like you are on-plan, not that you are desperate.

When they start haggling, you are now starting from a higher price. But, don't lower the unit price from your price list, offer free add-ons, like extended warranty, on-site service, no-cost options, things that will cost you nothing until after you have sold some.

These are things I have seen work, by me, and on me. Price is never really the issue on specialty purchases (unlike commodities), getting the customer to see he NEEDS your product is the key. And you gotta make the purchasing agent look good, give him a hero story to go to his boss with... like "Hey boss, since I ordered 400, there won't be any increase in the maintenance budget, because I got free on-site service for the next two years!"

Bruce W.
----- Original Message -----
From: BlizB-@aol.com
To: Invent-@topica.com
Sent: Saturday, March 01, 2003 5:44 AM
Subject: Re: (InvEd-L) It's about to hit the fan...NO, it IS hitting it


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=== Message Follows ===


In a message dated 2/28/2003 11:59:06 PM Eastern Standard Time, war-@valcourplantation.com writes:


    I have seen many times the scenario you find yourself in with the 'customer' bitching about a laundry list of trivia.
    It may be a desperate effort to evade their agreement, BUT, take heart, it often is a prelude to haggling to get the price lower.
      


      The "Holding Company" is probably concerned that if they have to install the Vertalert onto the, at last discussion, 170 Aerialifts (was 400 and might be back at 400 by late summer)...of the S.A.C....that they may be under some pressure to outfit the Aerialifts under the rest of their ownership umbrella also...(approx.2500 Aerialifts Nationwide).
      If there is a crushing injury or fall from one of the other lifts in their fleet....The Attorney representing the injured individual would want to know why the safety product wasn't installed on every aerialift....I've got a feeling that this may be on their minds....do you think?
      As far as cost for the first units to S.A.C......They had agreed to the price of $250 for a 400 unit order (my Licensee came down to that price after some haggling)...with 50% down...When the S.A.C.s fleet dropped to 170 units...my Licensee agreed to keep the price at $250 ea. in an attempt to fascilitate the purchase.   I do think that you're right in that they will attempt to chop the price again....problem is....I don't think my Licensee can afford to go lower...especially with the order size dropping by over 50% from original....

     Paul B.
      



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<DIV><FONT size=2>Paul,</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>You have to play the game. Now is the time to announce a price
increase, effective, say, April 15th. You have to make it all very proper, press
release, new price list with schedule of quantity discounts. Fit the quantity
discount breakpoints to match the numbers you stated below to encourage a bigger
order.  Make it read between the lines like you are on-plan, not that you
are desperate. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>When they start haggling, you are now starting from a
higher price. But, don't lower the unit price from your price list, offer free
add-ons, like extended warranty, on-site service, no-cost options, things that
will cost you nothing until after you have sold some.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>These are things I have seen work, by me, and on me. Price is
never really the issue on specialty purchases (unlike commodities), getting the
customer to see he NEEDS your product is the key. And you gotta make the
purchasing agent look good, give him a hero story to go to his boss with... like
"Hey boss, since I ordered 400, there won't be any increase in the maintenance
budget, because I got free on-site service for the next two years!"</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Bruce W.</FONT></DIV>
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=Bl-@aol.com
href="mailto:BlizB-@aol.com">BlizB-@aol.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=Inv-@topica.com
href="mailto:Invent-@topica.com">Invent-@topica.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Saturday, March 01, 2003 5:44
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: (InvEd-L) It's about to hit
the fan...NO, it IS hitting it</DIV>
<DIV><BR></DIV><PRE>{If you have found InventorEd useful then please
support us: visit <A href="http://www.InventorEd.org/donate/}">www.InventorEd.org/donate/}

</A>=== Message Follows ===

</PRE><FONT face=arial,helvetica><FONT lang=0 face=Arial size=2
FAMILY="SANSSERIF">In a message dated 2/28/2003 11:59:06 PM Eastern Standard
Time, <A
href="mailto:war-@valcourplantation.com">war-@valcourplantation.com</A>
writes:<BR>
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px"
TYPE="CITE"><BR>I have seen many times the scenario you find yourself in
    with the 'customer' bitching about a laundry list of trivia.</FONT><FONT
    lang=0 style="BACKGROUND-COLOR: #ffffff" face=Arial color=#000000 size=3
    FAMILY="SANSSERIF"><BR></FONT><FONT lang=0 style="BACKGROUND-COLOR: #ffffff"
    face=Arial color=#000000 size=2 FAMILY="SANSSERIF">It may be a desperate
    effort to evade their agreement, BUT, take heart, it often is a prelude to
    haggling to get the price lower.</FONT><FONT lang=0
    style="BACKGROUND-COLOR: #ffffff" face=Arial color=#000000 size=3
    FAMILY="SANSSERIF"><BR>  <BR></BLOCKQUOTE><BR></FONT><FONT lang=0
style="BACKGROUND-COLOR: #ffffff" face=Arial color=#000000 size=2
FAMILY="SANSSERIF">    The "Holding Company" is probably
concerned that if they have to install the Vertalert onto the, at last
discussion, 170 Aerialifts (was 400 and might be back at 400 by late
summer)...of the S.A.C....that they may be under some pressure to outfit the
Aerialifts under the rest of their ownership umbrella also...(approx.2500
Aerialifts Nationwide). <BR>    If there is a crushing injury
or fall from one of the other lifts in their fleet....The Attorney
representing the injured individual would want to know why the safety product
wasn't installed on every aerialift....I've got a feeling that this may be on
their minds....do you think?<BR>    As far as cost for the
first units to S.A.C......They had agreed to the price of $250 for a 400 unit
order (my Licensee came down to that price after some haggling)...with 50%
down...When the S.A.C.s fleet dropped to 170 units...my Licensee agreed to
keep the price at $250 ea. in an attempt to fascilitate the
purchase.   I do think that you're right in that they will attempt
to chop the price again....problem is....I don't think my Licensee can afford
to go lower...especially with the order size dropping by over 50% from
original....<BR><BR>   Paul B.<BR>    <BR></FONT></BLOCKQUOTE></FONT>

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