Thursday, March 31, 2005

Blogging via email failed ! Repost !

Time now is 9:36 am 11:05 am and sitting in office right now. Everyone seems to be very busy but me.

Yesterday had a nice chat with Andy from Wontech & Francis
from Maxwell. About 6 years of time in the CD-R and DVD-R
industry has made me seen too much of things.

I've witnessed :

1. The speed of CD-R increased from 8x to 52x ( 3 years time )
2. Dye of CD-R changed from Silver Blue to Silver Green.
3. Dye of CD-R changed from Silver Green to Silver Diamond.
4. Dye of CD-R changed from Silver Diamond back to Silver Green.
5. The Dye for CD-R remains to Silver Green as of today.
6. DVD-R ( 1x ) was at RM4 or RM5 per piece, now cost RM 0.50 ( 4x )
7. CD-R ( 8x ) was at RM 1.20 per piece, now cost RM 0.40 ( 52x )

As time goes on, technology becomes cheaper and we will pay less
and gain more at the same time.

Price of DVD-R and DVD+R is slowly decreasing from above RM 1.00
to below RM 0.80.

Price of CD-R in contra increased from RM 0.32 ( Lowest time ) to
RM 0.40 and RM 0.42.

A lot of customer were complaining about the price hike, but :

1. Did they complain when the price drop?
2. Did they complain when we offer them a "super price"?
3. Did they complain when they earn a 20% margin?
4. When we sell bonus disc to them?

Well, back to one thing, when you are working for a company
you should always look for the mentioned company interest and
profits first.

Other then that, you could try to be reasonable and flexible with
customer, again must always think of company interest & profit.

When you give discount to customer for prices, it might not necessary
to be "harmful" or bringing "contras" to your own company.

When you increase price of a certain goods and earn a few hundred
more you might also not necessary doing any good and doing any
favour for your company.

Look and oversee a long term business should be the solution.

Imagine, when you give discounts ( reasonable of course ) your customer
will feel very appreciated / become aggressive to do more sales for the
rewards you've given them.

You've gave them the reason to fight harder and aim higher. And the most
important thing is that the spirit of them is high and they might even die
for you. Sacrifice a few hundreds ringgit and get this in return = Priceless !!

Different situation :

Try to earn a few more hundreds ringgit from a single sales transaction. You
think you've done a good job and earn a lot of $$$$ for your company?

It might not necessary be right if you are looking at it for long term.

Imagine your customer has purchased some CD-R or DVD+R from you at
say RM 0.05 more expensive per piece from you. Total deal = 20,000 pcs.
Total you've earn = RM 1,000.00 for your company.

But when the customer learn that you've chopped his RM 1,000, and below
are the consequences :

1. Customer is unhappy cause you chopped his RM 1,000 for no reason.
2. Customer might become less competitive, compared to other customer.
3. Customer will lost confidence with your "honourbility".
4. Customer will try to find alternative supplier ( you are dead meat !! )


Worst case would be issue number 4, if customer could find an alternative
supplier which could offer a much more better price compared to you.
You would be in big trouble, cause they will keep comparing the prices
in between you two. And might as well stick to another side forever without
coming back to you. Imagine that eh !!!

Well, that's just some thought in the morning about what has happened
for the past few years time. And frankly I've learned a lot of things from a lot
of people and incidents.

The experience that I've got and learned = Priceless !!

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