I have been asked to go through my contacts to get something made. I have a few "friends" or acquaintances who have the injection molders that are capable of doing this job. Not everyone has the right size machines so it is a fairly specialist field. I don't mind helping people out as you just never know when you might need them. I am not doing it for free, but it will pay for drinks so this is just pocket change.
I contacted my first business acquaintance hoping for a friend price and got given a I hate you price. He has no idea that I am involved in the plastic industry now and that I know the raw material prices. I have the molds and I know the weight of the items and all I am doing is negotiating to use his equipment and skills.I have no problem with anyone making a profit as we all have to survive, but not the price he quoted me.
I will lock his price into my memory banks and when he complains about how quiet his business is I will gently remind him that regular business keeps your machines working.They are the bread and butter and everything else is the cream.
Normally prices are governed by volume and the more you have to make the cheaper the pricing. I thought 30 000 of each item on a monthly basis was a fairly decent number. Negotiating on this one is not going to happen as there is a 320 percent mark up which he has added to the raw materials. I will say something when I see him next week.
This is when you find out who your real "friends"are and I have more hope with a better contact who gets back from the Far East this weekend. I look forward to seeing the difference in pricing and expect to see today's price drop by around 70 percent. This company has the equipment required and I have known them for around 12 years now.
I saw my mate this evening and he is a mate as he bettered the target price and he gets the molds delivered on Thursday. He sees the bigger picture and wants the work which is a good sign. When you are helping people out the last thing you want is to be let down as it is your reputation on the line. Ripping people off though is uncalled for and he will go to the bottom of the list, but will still be on it as he is still a contact.
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