BE A MASTER OF ONE!
By Ramani M
MODUTEC Ready Panels Private Limited
This is about what happened to a Panel Builder (PB) in India, when our Sales team met him some months ago.
He has been in the PB business for 15 years. He has his own fabrication facility with Press Brakes, Shearing Machines, Welding arrangements and so on. He makes Panels in his 8000 sq ft shed dedicating half of it to Assembly. Powder Coating is sub contracted. At times when needed he sub-contracts CNC Turret Punching to a nearby job worker.
As in most calls, the PB generally appreciates the Modular concept, the Enclosure quality & then we come to the all important price!
We talk about investments made in Type Tests, R&D and Infrastructure to make the quality predictable, delivery faster and with unparalleled flexibility. We get acknowledged, but the matter meanders back to the price!
We then ask him what gets him business? Like a wise entrepreneur, he declares, that his closeness to his Customers, his ability to solve their problems & the cost effective ways in which he is able to do it.
“Well said”, my Sr. Sales Manager (SSM) applauds and says “Just one point. If our enclosure prices work out for you, will this help you, not get distracted with fabrication & focus more on your Customer?”
“Yes of course” he responds. Not just that, it will free up 4000 sq ft space in my factory, reduce my further CAPEX investments in machinery and forget completely the hassles’ of not just powder coating, but also managing different staff & worker functions!”
‘Great! If you are able to spend more time adding more value to your Customer’s requirements, and this delights him, would you be able to wriggle out another 5% margin?” my SSM asks. “It is difficult, but not impossible” comes finally a positive note from the PB.
Now, we agree that Modutec will be 20% more expensive than your own internal Fabricated Panel Enclosure cost, right?” my SSM says it more like a statement & then explains, “The enclosure is generally around 15% of your switchboard selling price. This means, if you pay 20% more to Modutec on this 15%, the overall impact on your selling price is just 3%!”
“This not only means you earn 2% more by adopting Modutec enclosure systems, but will also free up 4000 sq ft of shop floor space for future expansion. Are you getting this?”, my SSM implores.
‘Wow! This sounds good. Let us start with one project and then let us take this possibility forward!’ exults the PB!
Soon, the PB was won over. He is today a key account for Modutec and both our revenues are growing. Standardization was introduced to the PB in a major way. He was taught the advantages of MODSIM Software from which the entire mechanical BOM & estimation prices are arrived at. Systems gradually replaced a hap-hazzard way of working. Drawings were archived for easy traceability. Even Bus Bar developments were planned with least scrap.
The PBs’ way of working was totally transformed.
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