HP3000-L Archives

September 2000, Week 1

HP3000-L@RAVEN.UTC.EDU

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Subject:
From:
Jim Phillips <[log in to unmask]>
Reply To:
Jim Phillips <[log in to unmask]>
Date:
Thu, 7 Sep 2000 10:42:34 -0400
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Chip Dorman <[log in to unmask]> wisely notes that:

> I, too, am concerned about this growing trend.  Seems there is a subtle
> effort on the customer side of the business relationship to push part
> of their internal operation onto the vendor.  Around here, I've noticed
> similar activities are increasing such as the work we are doing so that
> one customer can load their new computer systems.  Traditionally, loading
a
> computer systems has been performed by the owners of the computer
> not the owners' vendors.  From my perspective, by agreeing to these types
> of activities, we are are decreasing our customers' operating expenses
while
> increasing ours.  By doing so, are we really wanting to get into another
> business besides the manufacture and sale of industrial tooling?
>
> I feel that it is becoming more and more important for us to develop
> the internal ability to measure the total cost of business/sales
> for those customers insisting that we support their internal operations.
> No longer is it wise to only consider sales margin when evaluating
> a business relationship rather we need to look at the total cost
> of the relationship verses the income the relationship provides.

Oh, Chip, you are so right!  That is exactly what we are doing; i.e.,
reconsidering whether it is worth it to us to continue with this customer or
not.

> (Of course on the flip-side, have you taken a good look for opportunities
> to push some of your operating expenses onto your vendors? :-)

Oh, I see, if you can't beat them, join them! :-)

Jim Phillips                            Manager of Information Systems
E-Mail: [log in to unmask]     Therm-O-Link, Inc.
Phone: (330) 527-2124                   P. O. Box 285
  Fax: (330) 527-2123                   10513 Freedom Street
  Web: http://www.tolwire.com  Garrettsville, Ohio  44231

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