Tuesday, June 30, 2015

Company turnover: 8,000 crores plus

This is a company having a turnover of 8,000 crores plus and is situated about 50 kms. from my showroom.

They wanted 2 nos. of water coolers.

One must remember that the cost of transportation of these two water coolers would be around Rs.1,500 plus.

I quoted a figure with a minimum reasonable margin but the purchase guy says that another dealer has quoted Rs.1,500 less than me for each water-cooler.

I explained that reduction is not possible and that they could very well
purchase the same product from the other dealer since there is no question of duplicate product (unlike mobile phones, etc) in a water-cooler!

Then they explained that they are having some "issues" with the other supplier. I told them my inability to reduce the price further.

Two days later they came back and said they would place the order on me. (I am still waiting for that as on date).

"Think globally, act locally" has now become "Check prices on-line and buy locally".  Well, this doesn't work out.

Monday, June 29, 2015

Company turnover: Rs.55,000 crores approx.

The purchase assistant from a very big company wanted a freezer for their canteen.

I quoted a reasonable price bearing in mind the transportation cost (which is the game changer these days) and also said that payment is to be made in advance.

The buyer said that the company would pay in 30 days.
Yes, you could pay in 30 days to your regular suppliers who buy month after month. This being a one-of purchase, we cannot be following up for the payment.....sometimes, it proves to be cumbersome. Of course there is no doubt about receipt of payment.

Then the buyer said you know we buy lot of things for our canteen like utensils, vessels, etc. which you could supply. We are not in the business of supplying these items.

Finally the buyer wanted to negotiate the price. There was no scope for any reduction!!

Then I suggested that since the company buys regularly from ABC company utensils and other canteen equipment they could take the freezer from the very same company who are distributors for freezers.

Still the buyer was keen to purchase from me and wanted reduction in price.

I told him: If you want the item, this is our final price. If you want it at a slightly reduced price I have shown you the place from where you can get it and whom you say is your supplier.

Why can't they appreciate this service of showing them where to get the item they wanted at their terms?

Friday, June 12, 2015

A happy customer

Customer: "Thanks for the nice job"
Me: "I am happy"
Customer: "Actually, I am very happy"
Me: "Sir, only if you are happy, I can be happy"

 A few days back a customer phoned me and wanted to buy a
window air-conditioner.

I explained him all the necessary details. Installation involved complete
alteration to window including grille cutting, etc.

I spoke to his carpenter and gave all the details on how to do the job and also the dimensions of opening required to fit the ;unit.

AC unit was supplied and my technician immediately followed and the unit sat wonderfully well.

The customer was extremely happy and gave an appreciation letter.

Since I don't go to office often, shall share the letter after a day or two.

Sunday, June 7, 2015

A tough decision - but needs to be taken at times!!

A customer walked into my showroom and after discussions spoke
to me over the phone.

He identified himself as an old customer of ours and having purchased
a few air-conditioners some years back.

Business climate being what it is, our pricing structure is pathetic with
margin of less than Rs.500 on a machine, so that customers do not run away the moment the price is mentioned!! This unfortunately leaves no scope for reduction or bargaining by customer.

For quite some time he was insisting on some discount. Finally I reduced the price by Rs.200.

A few days later he came back to finalise the deal. He met my friend and wanted further reduction!!

Now we come to the most difficult part. We could have said "No" because anyway there is hardly any margin worth mentioning in the deal.

My friend asked me that the customer wanted a further reduction of Rs.300 to close the deal and what was my advise.

I just told him to go ahead and close the deal at Rs.500 less.

No margin, but a sale has been made, a customer has been retained!!

At times we have to do such things, let us not grudge about it!!