Edwin Pawlowski wrote:
(snip)

My company faced a similar situation. We supplied parts to a major
manufacturer of room air conditioners. They were our largest customer for a
few years. Tough to deal with, we still made a fair profit and they always
tried to squeeze us for more. Before the start of a season, they sent us
(and all their suppliers) a letter thanking us for past performance. They
then said for the next year they wanted a 25% price reduction for the same
parts. Then, if we agreed to that, they wanted a 6% rebate on the past years
sales to them.

We declined and asked where they wanted the tooling shipped. It went to a
hungry competitor that cheerfully took the business away from us. Two years
later, we had new and profitable customers, they had a bankruptcy filing and
the customer moved to Mexico and found new cheaper suppliers there.

Good for your company. I wish more manufacturers had the balls to do the
same. Every time I have to replace a tool or piece of hardware with
moving parts, I am astounded at how cheaply the modern items are made.
I'm a cheap SOB, but I am willing to pay extra for quality, within
limits. Initial cost is only one factor in cost of ownership. If I have
to replace something in half or 2/3 the time span the previous item
lasted, but the price is only slightly lower, I haven't saved a thing.
And that doesn't even count the value of the time I have to waste
chasing a replacement sooner than I should have.


aem sends...