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Clear trends are emerging with our customers.
How do we deal with the obvious trends? 
Old Greenwich, CT Tuesday March 17 for immediate release- In the last 6 months, clear trends have emerged that "changes the playing field". We will deal with the most important of these.
(pictured: our new Shanghai office)
1. Unit volumes have dropped in many areas. We recently remarked to one of our customers placing a small order "25,000 is the new 100,000". The Asia Dispensing advantage: With our negotiated price structure with our factories, the cost curve is relatively flat and that translates directly to price brackets. You will not experience a "low volume penalty" with us. The advantage of ordering just what you need, allows minimum inventory commitment and maximum inventory turns.
2. Low or no visibility: one of our competitors recently complained that in many cases forecasting is no longer done. "We get no visibility", he went on to say. The Asia Dispensing Advantage: We have considerable advantages here: 1. Our factories have available capacities, fast startup and completion. 2. With export rebates restored in many commodities. our factories run export orders preferentially.
3. There is readily available space on ships guaranteeing fast pickup and delivery. This gives you competitive lead times that you can live with.
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Dealing with cost pressures 
Margin pressures: It was revealed last week in the Wall Street Journal that one of our customers (a big public one), had suffered the loss of more than a 5 margin points . Over the base of their prior margin, this translates into a loss of almost 14% of their margins. They are not alone with this problem, and while cost of goods sold is only part of the problem, this is where we work best. The Asia Dispensing
Advantage: We consistently supply quaility dispenser products, which can help restore the margins of our customers. Our value proposition is clear: quality, performance, and "margin enhancement". We try to get our customers to react and be as far ahead of the curve as possible. We get you back the margin you have lost
The Disapearing Tooling Budget: Our market demands innovation, but finds it difficult to make these kinds of investments in the creation of new designs. In a competive and uncertain environment it is doubly important to "stand out in the crowd". The Asia Dispensing Advantage: We have 2 strategic directions we can take:1. Since we offer such an array of standard components, we can often find a workable solution. Perhaps it just a color change and the addition of aluminum shells, anodized to attain the look you want. 2. However if new injection tools are required, we minimize investment and maximize tooling efficiency. We drive our engineering from our US based engineering staff, ensuring faithfulness to the designs. The combination of these approaches assures that we can always offer our customers options to win.
(Pictured : 1 of the 85 molds we produced in '08) |
