Publisher & Editor-in-Chief
PUBLISHER'S LETTER
Leo Simpson, B.Bus.
Editor
Greg Swain, B.Sc.(Hons.)
Technical Staff
John Clarke, B.E.( Elec.)
Robert Flynn
Darren Yates
Reader Services
Ann Jenkinson
Advertising Manager
Paul Buchtmann (02) 979 5644
Mobile: (018) 28 5532
Regular Contributors
Customer service - opportunity knocks
As I sit down to write this month's "Publisher's Letter", I have just
finished talking to one of the many sales representatives who come to
visit us every month. Not uncommonly, these reps are interested in
tapping into the lucrative electronics hobbyist market because they see
the apparent success of the big operators, some of whom advertise in this
magazine. But while they are attracted by the thought of new business
they are very much put off by the thought of having to sell directly to the
public. They somehow wish to gain some of the business of firms like
Dick Smith Electronics or Jaycar but without making any contact with the
actual customers.
Unfortunately, I don't have much sympathy for this view. For we also
hear a lot from readers or small firms who wish to buy from component
distributors who just won't deal with them. Quite simply, these organisations are turning away business. And, in the current economic climate,
they are turning away the very best business of all - it is called "cash
sales".
Now while having to set up a cash sales counter may cause a problem
for some firms, just think of the advantages. There is no need to invoice
customers. There are no bad debts with cash sales. The cash comes in,
often before the company has to pay for the goods it is selling. Need I go
on?
Some of the firms in question also worry about the high cost of providing each individual sale. They don't wish to make a $5 sale that they say
costs them $15. Well, does it really? The easy way around that problem is
to stipulate a minimum value cash sale which might be $10, for argument's sake. Now while the individual $10 sale might still be regarded as
a loss situation, at the end of the month, a bunch of these sales might
make a substantial contribution to overheads and might not be such a loss
after all. Also it might just be the case that the firm has not worked out the
true cost of its conventional invoiced sales.
The bottom line is service to the customer. If customers know that components are on sale from a firm they will eventually buy from that firm.
And you never know when a previously small customer may decide to
place a big order, solely on the basis of the good service he has had in the
past. On the other hand, if he's had the cold shoulder in the past, why
should he place the big order?
Is that how you think? I know I do.
Leo Simpson
Brendan Akhurst
Jennifer Bonnitcha, B.A.
Garry Cratt, VK2YBX
John Hill
Jim Lawler, MTETIA
Bryan Maher, M.E ., B.Sc.
Jim Yalden, VK2YGY
Bob Young
Photography
Glen Cameron
Editorial Advisory Panel
Philip Watson, MIREE, VK2ZPW
Norman Marks
Steve Payor, B.Sc. , B.E.
SILICON CHIP is published 12 times
a year by Silicon Chip Publications
Pty Ltd. All material copyright ©. No
part of this publication may be reproduced without prior written consent of the publisher.
Printing: Magazine Printers Pty
Ltd, Rozelle, NSW 2039; Macquarie
Print, Dubbo, NSW 2830.
Distribution: Network Distribution
Company.
Subscriptioa rates: $42 per year
in Australia. For overseas rates,
refer to the subscription page in
this issue.
Liability: Devices or circuits described in SILICON CHIP may be
covered by patents. SILICON CHIP
disclaims any liability for the infringement of such patents by the
maJ7ufacturing or selling of any such
equipment.
Editorial & advertising offices:
Unit 39, 5 Ponderosa Pde, Warriewood, NSW 2102. Postal address: PO Box 139, Collaroy Beach,
NSW 2097. Phone (02) 979 5644.
rax (02) 979 6503.
ISSN 1030-2662
APRIL 1991
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