After taking over from a previous supplier that was delivering sub par quality parts, we really did a great job
of modifying and producing a much better product. They are labor intensive and require alot of purchased
parts and lead time to produce. Last Fiscal year this project was 15% of gross business for us.
Even with all the better changes we made, we have kept our price the same and have NOT had an increase.
I have absorbed some of the cost increases due to the fact that we streamlined the production methods.
The customer purchases the items on a quarterly basis, so I check in with them after we send the
last shipment on an existing PO.
I sent a quick email to my inside guy asking about the possible quantities that they would need.
THIS is what I got back.in an email:
J-------,
45 a quarter
