To: Stanley Sucks home...
Editors note:
This document was received by all distributors in a mass-mailing in the "distributor network" in April 1998.
Voice-Mail Script To Mac Tool Distributors: AW434B And Pricing Bill Mark April 14, 1998
Mac Tools Distributors:
Our air tool business is a vital part of Mac Tools'. Many of you are concerned about our pricing strategy. I want you to understand, how you wilt benefit from our new overall strategy, including pricing.
This may come as a surprise to some of you. But... fact is, we have lost several thousand air tool sales during the past couple years. Quality, slow new product development, delivery, and price problems hurt our business, especially the flagship AW434. We needed to do something dramatic to solve all of these problems. Closing the O'Fallon facility was not easy, but it had to be done. By closing that plant, we improved our prospects for a brighter future.
Quality'
The AW434B's are proving to be much stronger than ever, stronger than the old AW234 now sold by our competitors, stronger than the old AW434. And the durability. . . We've shipped several thousand AW434B's in the past six weeks, with only one warranty repair to date. Compare that to the old AW434.
New Product Development:
In the future, you will see further improvements and new products faster. That's not just a promise, see us at the 1999 Tool Fair. I won't go into detail, but you will be excited to see what's coming.
Delivery:
The AW434B has been on backordered a few days at a time. By the end of the month, that will be behind us. That is, your orders am being filled in reasonable fashion. Last year at this time, we were still shipping backorders from a 1996 fall promotion. Our new vendor has the capacity to keep up with our business. Pricing plays a role in helping delivery. At $219.95, you will sell more AW434B's at regular price than in the past. Huge spikes of promotional demand will be less prevalent. This will mean more consistent delivery. This is good for you in the long term, less stock-outs. You do not have to stock in huge quantities to be sure you get delivery at a good price. Turn your inventory faster, reinvest the money in other fast-selling products, and make more money.
Pricing:
Your customers need to know, MAC IS BACK with the best 1/2" air wrench. You told me repeatedly, our air tool pricing was high in relation to competitors. Comwell and Matco especially took advantage of us. And honestly, many of you bought more air tools from WD's than from Mac Tools. But we are sending a clear message... MAC IS BACK.
Mac Tools' air tool prominence was built on outsourced air tools, sold at class C- The AW234 (l-R made, replaced by O'Fallon model AW434 in 1992) was always class C discount, as all our outsourced air tools always have been. Class C and lower prices roll back the clock.
You again have an air wrench you can be proud to sell, at a competitive price. Your discount is also the same as your competitors. The list price changed from $249.95 to $219.95. The distributor discount changed from 35% to 30%. The traditional distributor is paying $8.50 less per tool.
Promotions are still a necessary part of an air tool strategy. The next promotion will be in June, with the AW434B plus free goods (30' air hose and three-color protective boot.) We'll have additional promotions. I discussed this strategy with many of you prior to making this move. We'll gain market share, sales, and profits, together. When you view the whole picture, the new pricing fits. You can sell against the bad guys at the same margin, with a better product. Turn that inventory and reinvest. All of the changes make us the dominant force. Just like you, I want to do the best job for my customers, and sell more air tools profitably. When your customer needs an air tool, they should think of you. And when you need an air tool. ..just know this, MAC IS BACK.
Thanks And Good Selling.
