In my nook of the world (opto-electronic components for communication equipment) there has been an 800-hundred pound gorilla in the room since the dot-com bust of 2001. Since that time, this company (a tech company well-known by all) has enjoyed a monopsony (the opposite of a monopoly: one buyer – many suppliers). It took advantage of this position, to the point of being abusive with their suppliers.
Most of my competition are small tech companies that have had no choice but to endure this abuse. I feel sorry for the fellows who work for these companies, as they have not had a profit in ages (thanks to this customer). My company, on the other hand, is large and diversified. As such, we have slowly weaned ourselves from this business. Ten years ago, we were selling 50 different components to this customer, with a monthly revenue of $25M. Now we are down to one component, pulling in about $2M per month. It turns out that no one else makes this highly specialized device, as it requires very complex engineering.
The issue at hand is that this customer wants us to increase our capacity, even though they refuse to supply us with any demand forecast. We refuse to do so. Hence, my meeting last week. I have never, in my entire career, seen a customer so enraged. If looks could kill, I’d be a dead man right now. However, inside, I was chuckling and enjoying it. The reason is that I understood the source of his rage. For once, he was in a situation where he was not holding the whip, and he didn’t know how to handle it. After watching this guy and his and his company’s imperious attitude for so long, I felt that justice had come, at long last.
today!!!!
I’m off toady>
Na na na na na
Arkady;
I actually enjoyed it! Let me explain.
In my nook of the world (opto-electronic components for communication equipment) there has been an 800-hundred pound gorilla in the room since the dot-com bust of 2001. Since that time, this company (a tech company well-known by all) has enjoyed a monopsony (the opposite of a monopoly: one buyer – many suppliers). It took advantage of this position, to the point of being abusive with their suppliers.
Most of my competition are small tech companies that have had no choice but to endure this abuse. I feel sorry for the fellows who work for these companies, as they have not had a profit in ages (thanks to this customer). My company, on the other hand, is large and diversified. As such, we have slowly weaned ourselves from this business. Ten years ago, we were selling 50 different components to this customer, with a monthly revenue of $25M. Now we are down to one component, pulling in about $2M per month. It turns out that no one else makes this highly specialized device, as it requires very complex engineering.
The issue at hand is that this customer wants us to increase our capacity, even though they refuse to supply us with any demand forecast. We refuse to do so. Hence, my meeting last week. I have never, in my entire career, seen a customer so enraged. If looks could kill, I’d be a dead man right now. However, inside, I was chuckling and enjoying it. The reason is that I understood the source of his rage. For once, he was in a situation where he was not holding the whip, and he didn’t know how to handle it. After watching this guy and his and his company’s imperious attitude for so long, I felt that justice had come, at long last.
Benson – How’d your reaming go?
I’m in today.
When I went through Grand Central station this morning, it was near-empty.
I am officially off today. But it’s a pure joy to come to the office wearing jeans and not be bothered by anybody. Just trying to catch up on stuff.
Happy MLK day!
Who else is working today?
“How many people actually get today off?”
not yet but hoping for some afternoon delight.
Good inspiration for today and any day: http://bit.ly/5oqazs