FADAL Selling Assets

On Feb 27, 10:22am, F. George McDuffee <gmcduf...@mcduffee- associates.us> wrote:
d> wrote:


Marketing? The other trick is to get a couple of your brand into a shop at any cost. Once in, shops like a consistency with controls.
Think about this: Back in the 1990's (ish..) The machine tool market slowed. Fadal decided to cut back on production and even laid off folks. Haas took the gamble that it was short lived. So they kept up production (without even current sales to back it up) and stored machines all over the plant. When things turned around they offered same day delivery of most any machine! They even cannibalized existing ones to fill orders. That put them on the map. Fadal had to fire up manufacturing and assembly without a full staff. Haas got their foot in the door of a LOT of shops that way. Now, the mystery is how the inventory backlog was supported (remember the time frame and the surrounding controversy of the day). I'm just saying...
-- Bill
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I agree. The problem is 90% of the people buying cheapo machines don't know or care about HPCC, AICC, etc. They like the big color screen, and the shiny stainless steel bezel, and all of the other stuff that Haas controls come with standard.
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wrote:

It's not a problem. It's the reality of the market. So you either figure it out or die. Unless of course you have congress in your pocket. Then you are "too big to fail" or some other bullshit.
There are companies that build good machines and fail and there are companies that build crap and fail. The inverse is also true. If you can't figure out what your good at and how to sell it while making a profit, then you're doomed.
In order to be successful you need to be one of three things; the low unit cost producer, differentiated, or focused on a niche. If you have differntiation in your product you don't have competition. By differentiation, I mean game changing technology, not BS like we have better service. Once you are successful that won't last long. Either your patents will run out or some company will figure a way around them.
If you focus on a niche you need to know and dominate that niche like nobody else. So if you're going to make hole poppers, you need to know every niche that can use one and have expertise in their particular applications.
If you are going to be a low unit cost producer, you need to be able to sell for less money than anyone else while making a profit. That was Fadal's business in a nutshell. The built broad market VMC's and sold them cheap. The problem is that after a couple of leveraged buyouts it wound up being owned by a big company with cost structures and a culture that didn't allow them to sell at a price that was competitive at a profit. So they are dead, or at the very least they are on life support.
--

Dan

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And to think, Haas was almost owned by Hurco! after the lawsuit on software infringement.. go figger & Fadal is a nice Aluminum cutting machine.
-- BB's #120 Ashes to ashes Dust to dust If live we will Then die we must
""(`*.(`*. Gil .*).*)""             
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Nahh, Haas was never almost owned by Hurco. That 10 million bucks wasn't even a drop in the bucket to Haas.
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wrote:

Ya, but what I've "heard" If it wasn't for that 10mil (at that time) Hurco would have been ........... well ........kinda like Fadel now
--
HURCO's DXF rules!
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