Sunday, November 15, 2009


We recently bid on some business that wasn't part of our core competencies. We told the customer that that type of work isn't part of our service package, but they gave us an RFQ. We quoted it. The quote looked good with regard to our current processes. However, the customer came back and said our price was too high. In fact, we were high by 100% compared to another US manufacturer, and 200% compared to an off-shore supplier. (Please understand we're talking about low base dollars.)

Though it's tempting to try and get a multi-million dollar account for a few months, we're not set up for it. We'd be investing a lot of engineering time and expense to try and win the business. We'd have to be very creative beyond what we know how to do. One of the reasons we're not in that market segment is that there are already a lot (a lot!) of good competitors in that niche.

There are not a lot of competitors in our niche. I think we'll just stick with what we're good at, no matter how tempting the dollars are.

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