Beware of Yuan
During the eleven-year history of Katy Spring, we have bid on many contracts that have high dollar volume, but rarely do we get the business. The main reason we seldom do is that there is usually someone out there willing to do the work for a very slim margin to get these large volume accounts. We are competitive, but we know where we need to be to make a profit, and our philosophy has and will always be; to offer fair pricing that builds long-term relationships with our customers. Under bidding or bidding for very slim margins does not fit within our business philosophy. It just doesn’t make good business sense for us, our clients or prospective clients.
So when a bid came in from a Chinese Import/Export company that had a total U.S dollar value exceeding a million dollars, at first I didn’t give it much thought. Sure it’s great in volume, but someone’s going to outbid us, especially since the company is in China, where labor rates are much lower, assuming they would select a Chinese spring manufacturer. We do, however, have clients in China. I’ve been told by our Chinese clients the reason they buy from us is that they can’t get the quality they need from their local spring manufacturers. I know there are good spring manufacturers in China; this is simply what we’ve been told by our Chinese customers. Naturally, we were skeptical and cautiously optimistic when this import/export company said they accepted our price and would like to enter into an agreement with our company.
Beware of Yuan