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'[OT] Au Group Electronics SAE J1939 simulator Gen '
2008\07\13@073401 by Vitaliy

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Funny NYPD wrote:
> The long waiting Au SAE J1939 simulator Gen II editions are now available.

Hi Funny,

Back in May, I sent you a private message expressing our company's interest
in selling your products on http://www.obd2cables.com. I want to repeat some
of the things I said, and provide additional comments for the benefit of
other list members (especially small business owners involved in
manufacturing).

- AuG's quantity discount is 5%. With that kind of razor-thin profit margin,
it would be hard to just break even. Most vendors that we deal with, offer a
minimum 40% discount off their retail price (and we do the same for our
distributors).

- AuG requires that resellers match the price on their website. None of our
vendors dictate what our retail price should be, and we have never imposed
such requirement on companies that sell our products. Competition benefits
you, the customer, and your resellers.

- "The price break only applies to the SIMJ1939-xx and accessories; no price
break on annual support & annual upgrade, and license management."
Translation: your resellers have zero incentive to sell annual support,
upgrades, and license management.

- None of our vendors have ever insisted on us providing information about
the "size and structure of our company", or monthly visitors to our site.
Such information is irrelevant in a cash transaction. Why do you need it,
anyway?

I finished my email with:

"Please let me know whether you are willing to compromise on the above
issues. Your products seem to offer functionality similar to DGTech and
Vector products, at a lower cost, and we feel that our website is a perfect
vehicle to sell your simulators."

I never heard back from Mike or yourself, so I have to assume you aren't
willing to compromise. Which is astonishing to me, since the transaction
would have been virtually risk-free to you (prepaid), and could have easily
tripled your sales. The stand-alone J1939 simulators we currently offer on
our site are selling like pancakes (in large part thanks to our focused
marketing effort):

http://www.obd2cables.com/products/product_info.php?products_id=118

By choosing to keep the price/cost ratio so high, and making it difficult
for companies to sell your products, you provide a huge incentive for other
companies to create devices with similar functionality. I won't be surprised
if in six months, there will be a simulator with an identical feature set,
selling for less than half the price. It's important to remember that it's
better to sell 1000 units at $100 a pop, than 10 at $1000.

Best regards,

Vitaliy

2008\07\13@081743 by Tomás Ó hÉilidhe

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Vitaliy wrote:
> It's important to remember that it's
> better to sell 1000 units at $100 a pop, than 10 at $1000.

1000 x $100    =    $100,000

10 x $1000   =   $10,000

I don't know what the product is, but another thing I would take into
account is the irritation I have from people calling me when they've got
difficulty with their product. If the product in question is
low-maintenance, then sure go with the 1000 units. But if you're gonna
be getting phone calls from 5% of the customers, it might be worth
taking $10,000 instead of $100,000.

5% of 1000 customers = 50 phonecalls

5% of 10 customers = half a phonecall

Just thought I'd throw that in there. I get phonecalls from people who
have put the cable into the wrong socket, even though the instructions
clearly state which socket it goes in. Then, when I ask them to make
sure it's in the right socket, they reply that they're 100% certain it's
in the right socket because they "put it back into the same socket that
they took it out of". Then when I ask them to actually look at what's
written above the socket, they call out the wrong name. And then there's
the people who hit Factory Reset on the product (which by the way can't
be done accidentally). Some people are just thick with a capital T.

2008\07\13@103316 by Roger, in Bangkok

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Ahhh .. basic design weaknesses?

Nothing can be designed idiot-proof enough, cables and connectors being the
ifrst objects of their affection:-)

Regards/Roger, in Bangkok

On Sun, Jul 13, 2008 at 7:17 PM, Tomás Ó hÉilidhe <spam_OUTtoeTakeThisOuTspamlavabit.com> wrote:

{Quote hidden}

>

2008\07\13@175058 by Vitaliy

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Tomás Ó hÉilidhe wrote:
>> It's important to remember that it's
>> better to sell 1000 units at $100 a pop, than 10 at $1000.
>
> 1000 x $100    =    $100,000
>
> 10 x $1000   =   $10,000
>
> I don't know what the product is, but another thing I would take into
> account is the irritation I have from people calling me when they've got
> difficulty with their product. If the product in question is
> low-maintenance, then sure go with the 1000 units. But if you're gonna
> be getting phone calls from 5% of the customers, it might be worth
> taking $10,000 instead of $100,000.

The math does not support your conclusion.

> 5% of 1000 customers = 50 phonecalls

Assuming $100/hr and each phone call taking one hour,

$100,000 - $5,000 = $95,000

> 5% of 10 customers = half a phonecall

$10,000 - $50 = $9,950

> Just thought I'd throw that in there. I get phonecalls from people who
> have put the cable into the wrong socket, even though the instructions
> clearly state which socket it goes in. Then, when I ask them to make
> sure it's in the right socket, they reply that they're 100% certain it's
> in the right socket because they "put it back into the same socket that
> they took it out of". Then when I ask them to actually look at what's
> written above the socket, they call out the wrong name. And then there's
> the people who hit Factory Reset on the product (which by the way can't
> be done accidentally).

Sounds like you work in tech support for an internet company?

Anytime we get a phone call from someone having difficulty using our
product, we assume that it is a problem with the product's design, not the
customer's intelligence or motor skills. Every week there is a tech support
meeting, with one of the engineers in attendance. One of the purposes of the
meeting, is to identify the biggest headache for tech support (and
presumably, the customer). Solutions range from changing the hardware
design, updating software, or even as trivial as changing a sentence in the
installation guide. Time and time again, this approach proves the old
axiom -- "Quality Is Free". The effort put into improving a product pays for
itself many times over through increased sales, and reduced support costs.

> Some people are just thick with a capital T.

Some engineers are just Arrogant, with a capital A. :)

Vitaliy

2008\07\13@200310 by Antonio L. Benci

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This is a multi-part message in MIME format.
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It is not whether clients are "Thick" or engineers are "Arrogant". I
work both with professional Engineers and career Academics, I am
generally the go between, what some would class as a "Professional
Officer". In most, if not all cases, it comes down to clarity of
information supplied and education.

I am constantly reminded of the lack of understanding between the
Engineers and the Physicists. How satisfying it is when both parties sit
down and discuss the pertinent issues and generally find a common point
of agreement...

Antonio

Vitaliy wrote:
>
>> Some people are just thick with a capital T.
>
> Some engineers are just Arrogant, with a capital A. :)
>
> Vitaliy
>


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n:Benci;Antonio
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adr:;;PO Box 27;Monash University;VIC;3800;Australia
email;internet:.....nino.benciKILLspamspam@spam@sci.monash.edu.au
title:Professional Officer / E&IS Manager
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'[OT] Au Group Electronics SAE J1939 simulator Gen '
2008\08\02@162308 by Funny NYPD
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Greeting, Vitaliy,
Thanks for bringing all the attentions to us. And thanks for your interest in our products and design/service capability.
We did get all the message from you long time ago. Unfortunately, since you didn't provide any required information to pass the Au Group Electronics distributor screening process, we didn't think and still don't think we were/are close to any possible business agreement.
Raising the price for another 40% to 60% for a US distributor won't be accepted by any of our US/Canada J1939 simulator customers. Sorry about that.

Every business mode has its own rules or discipline to follow. We didn't teach people how to run business, such as you can not ask a luxury cars sell at an economy cars' price, or vice versa.

We do respect people no matter they are competitors or business partners, and we don't disclosure any of their business information to the third party no matter how.

We do get rewards by doing that, even from our competitors.

As a matter of fact, we are still looking for good local distributors for the hot J1939 simulator products outside of North American (i.e. US and Canada).
If you are in the J1939/CAN industry, having the knowledge and capability, and willing to be our J1939 simulator distributor, please contact us off-list:

supportspamKILLspamAuElectronics.com

Thanks and Regards,
Funny N.
Au Group Electronics, New Bedford, MA, http://www.AuElectronics.com



{Original Message removed}

2008\08\07@014622 by Vitaliy

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Funny NYPD wrote:
> Thanks for bringing all the attentions to us. And thanks for your interest
> in our products and design/service capability.

You're welcome. :-)

> We did get all the message from you long time ago. Unfortunately, since
> you didn't provide any required information to pass the Au Group
> Electronics distributor screening process, we didn't think and still don't
> think we were/are close to any possible business agreement.

To be fair, I provided *some* of the information you asked for, suggested
sending you our standard credit application (which has our DUNS number), and
asked you to explain why you need the information that I thought was
irrelevant for a cash transaction (and that you have no way of verifying,
anyway -- like the number of visitors to our site). It makes me sad when
something so trivial becomes an obstacle to what could clearly be a mutually
beneficial business relationship.

FWIW, we would bite the bullet and provide the information you want, if it
wasn't for the other things mentioned in my earlier post.

> Raising the price for another 40% to 60% for a US distributor won't be
> accepted by any of our US/Canada J1939 simulator customers. Sorry about
> that.

No need to apologize, I think you just misunderstood what I said. I
suggested that you should consider offering more than a 5% discount to your
resellers. Otherwise, they have very little incentive to sell your product.

> Every business mode has its own rules or discipline to follow. We didn't
> teach people how to run business,

And I'm not trying to teach you how to run your business. I explained my
motivation in the OP.

> such as you can not ask a luxury cars sell at an economy cars' price, or
> vice versa.

Car dealers who sell luxury cars have higher profit margins than dealers who
sell economy cars. No offense, but your business model doesn't make sense.
You say you want distributors, but you make it unprofitable for people to be
your distributors.

> We do respect people no matter they are competitors or business partners,
> and we don't disclosure any of their business information to the third
> party no matter how.

That's admirable, but why do you require that your buyers provide sensitive
business information that you seemingly have no use for, in the first place?

> We do get rewards by doing that, even from our competitors.

I'm not sure I follow you.

> As a matter of fact, we are still looking for good local distributors for
> the hot J1939 simulator products outside of North American (i.e. US and
> Canada).

Great!

> If you are in the J1939/CAN industry,

We are.

> having the knowledge and capability,

Yes! We also regularly do business with, and actively market to, bus/truck
fleet management companies.

> and willing to be our J1939 simulator distributor,

Yes, but as I explained we would need more than a 5% margin for it to make
sense.

Best regards,

Vitaliy


> {Original Message removed}

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