Integrity Vs. Making a living [RE-wrenches]
Ray Walters
remotech at taosnm.com
Tue May 27 14:55:00 PDT 2003
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At 05:32 PM 5/23/2003 -0700, you wrote:
>Ray,
>By distributor, do you mean someone who buys parts wholesale and resells parts
>to dealers and installers?
>Best regards,
>Joel Davidson
Sort of, I mean a company that buys factory direct and sales to the DEALER
at wholesale. Wrenches have to get wholesale or we're just doing this for
the fun of it. That's the whole problem in a nut shell: I know factory
pricing is in the low $2/watt range, I know of special large scale
contracts for under $1.80/ watt. If the going rate for a decent quality
panel to end users is in the high $3 to low $4/ watt range (thanks to
Hpower & the internet), my cost needs to be in the high $2s to low $3/ watt
range consistently to make a living. I recently met with financial
consultants that took one look at my margin (or lack of one) on PV and said
I should go into a different line of work. ( I love solar, but financial
reality hurts)
As for your list, thank you, that's very comprehensive. Is there really
anyone out there doing all 21?
Sincerely,
Ray
>Does your distributor:
>1. not sell to your customers?
>2. give you the same pricing and terms as other customers your size?
>3. not sell to inexperienced and incompetent resellers?
>4. support for your efforts?
>5. work with you to develop and expand your business?
>6. provide product, technical, marketing and sales training?
>7. give you referrals?
>8. advertise in your territory and support your advertising?
>9. not set up competition in your territory?
>10. not change policies at his convenience?
>11. change prices without notice?
>12. not stock what you need?
>13. not make accurate and on-time deliveries?
>14. only call you when he wants you to buy something?
>15. tell the truth?
>16. know that ultimately you sign his paycheck?
>17. respect you?
>18. not make accounting mistakes?
>19. correct mistakes promptly?
>20. partner with you on major projects?
>21. understand technically what he sells?
>
>
>Ray Walters wrote:
>
>The super discounting is way
> > worse than keeping me from being competitive; it creates bad will. All my
> > efforts to win my customer's trust dissolve when that customer thinks that
> > I over charged them.
> > I don't have a problem with solar panels selling for $3.25/ watt. Lower
> > prices are accelerating the growth of our industry and making solar more
> > competitive with fossil fuels. We, the wrenches simply need a reasonable
> > margin to cover our contribution to the sell.
> > The solution to this was addressed previously:
> > 1) establish firm chains of distribution with fair profit margins for all,
> > 2) limit discount advertising,
> > 3) thoroughly train and certify dealers,
> > 4) set dealers up with separate sells territories.
> > 5) refer business from a national advertising campaign to the local dealer.
> > (Hmmm, sounds like other businesses.)
> > We the wrenches can only complain, but the manufacturers and their
> > distributors hold the future integrity of the solar business in their
> hands.
> >
> > Ray
> >
> > ray at solarray.com
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