Geoff:'Well, you all know that Ryder's have raised the price of their components from $1200 to $1350 for 100. It's quite a large increase. So now maybe the time to move to a new supplier. I would appreciate your input on this.'
Tim:'In my opinion we should move to another supplier, as you said it's a very large increase. They are just taking advantage of the situation. I had a meeting with the sales manager of their competitors Fizon Industries on Tuesday and they said they can supply us with 100 for $1255.'
Phil:'We shouldn't rush into anything. We've worked with Ryder's for nearly 10 years and we've never had any problems with them. We should talk to Ryder's again and try to reach a compromise. I'm sure they won't want to loss our contract.'
Geoff:'I spoke to their sales manager last week, and they won't lower the price. To be honest, I'm in two minds, Ryder's have always been very professional. But by increasing their price by so much, means we'll have to either pass it on to our customers or reduce our profits.'
Tim:'Look Phil, we don't have any option. Ryder's won't move on price. We only have 3000 components left in the warehouse. Those will last us for a maximum of 45 more days. Time is running out. We need to make a decision today. I think that Ryder's is trying to abuse the trust that we have with them and their products. I think how they've handled this situation shows a lack of respect towards us as a customer.'
Phil:'Tim, don't jump to conclusions about their intentions. I'm sure they are not abusing the situation. From a production side I think that we should keep our options open. We all know that Fizon Industries don't have a good reputation on quality or service. So we could be saving money today to spend it tomorrow.'
Tim:'Phil, I appreciate your concerns about quality, and we can include something about it in the service level agreement with Fizon Industries. There are also a number of other of companies that I'm waiting to hear back from. But the bottom line is cost. Ryder's components, although they are of very good quality, are just too expensive now.'