Sales pricing excellence

An industrial grade, skid-mounted unit (see Fig. 11.2) has been operating successfully at Occidental Chemical s Delaware City mercury cell plant since September 1997. Operating results have met both the expectations of the client and Kvaerner. This chapter discusses the operating experience at OxyChem and the resulting optimised commercial product, the Kvaerner Chemetics Sulphate Removal System or SRS . The acceptance in the market-place has been excellent four systems have been ordered and three are in the process of manufacture, with operations commencing later in 2000. Approximately 50 firm price proposals have been issued in the past two years. Several of these evaluations are in the final stages and will lead to the sale of units in the near future. 

In an industry as capital-intensive as chemicals, the focus on operational excellence of the last two decades is understandable. However, a significant additional source of value creation potential exists which is largely untapped creating a revenue advantage. Excellence in sales and marketing can lead to a tangible incremental improvement in ROS. In addition, a one percent improvement in price leads to significantly more value than a similar reduction in variable costs (Fig. 21.1). 

Shell is always worth listening to. As the Economist magazine has noted, the only oil company to anticipate both 1973 s oil-price boom and 1986 s bust was Royal Dutch/Shell. 36 Throughout the 1990s, Royal Dutch/Shell found itself atop the list of the world s most profitable companies, thanks in large part to its excellence in strategic planning. In 2002, the company had sales of 179 billion, profits of more than 9 billion, and more than 100,000 employees in 132 countries. 

Table III is meant as a guide but does show that phytotoxlclty is dependent not just on plant species but also on the time of application. Young cotton has an unacceptable level of crop damage the same plants, treated later in the growing season, are much less sensitive. Citrus is listed as a sensitive crop because a very low level of phytotoxicity on the fruit Itself results in a reduction in quality and hence in the price paid for the fruit. This phenomenon has kept propargite fix)m sales on citrus in spite of its excellent activity against the mites found in citrus.

Most readers are familiar with Bill Ruger s Mini 14 Carbine, as the rifle has been featured in every gun magazine in the country. The rifle s popularity is well deserved. It s well made, reasonably priced and fun to shoot. The Mini 14 was initially marketed as a police/border patrol carbine. Popular demand soon resulted in sales to the general public as a sportster/plinker. When modified as outlined here,this is an excellent light paramilitary weapon. 

Of course, you can purchase a stack and then build the rest of the system around that, or purchase other system components as well. Fuel Cells 2000 has an excellent web site with a list of available fuel cell units with photos, specifications, and prices (access URL via Resources page). Stacks can also be purchased on the surplus sales market. 

Flextronics International has excelled as a contract manufacturer for electronics that included cell phones. As it worked on contracted volumes, it was sheltered from market uncertainties and had ample opportunity to stand out in its internal capabilities. In early 2000s, it decided to compete as an ODM (original design and manufacture), that required it to assess customers preferences, design appropriate features in the cell phone so as to satisfy the customer, manufacture it, and sell it to a service provider through an OEM (Huckman and Pisano 2006). In doing so, it had to develop the customer facing capabilities of market-analysis and development of product architecture. In addition, it was now exposed to the market side risk in price and sales volume. The transition was successful, as the company took care to build the additional capabilities. 

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