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[rebel-builders] News on Murphy's new business model

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Bob Patterson

[rebel-builders] News on Murphy's new business model

Post by Bob Patterson » Sun Feb 19, 2012 4:51 pm

Thanks Gary !

A good thought - and one that might be helpful....
maybe the factory could post the start dates for runs,
once they receive the orders, so folks could contact their
local distributor and try to add on an order. There
would only be a few days leeway, I would expect.

This is a different business model, and will take
a bit of getting used to ! Basically, the factory is delegating
(outsourcing) sales and marketing to the distributors.
This reduces their overhead, and allows them to concentrate
on their core business - manufacturing parts !

Currently, each of the distributors will be accumulating
their own orders - they won't go to the factory until
they have 10, or more, depending on the country.
It will be up to the distributors to obtain the
order confirmations & deposits, since
the factory will not be doing sales and marketing,
but rather serving as a "parts manufacturer".

This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.

Please keep the suggestions flowing - we need all the
help we can get to make this work ! Maybe we need separate
sections on the MAM web site for each of the distributors -
or links, for those who already have their own sites....

It's a 'work in progress' right now - and we all want to
end up with a model that looks after the customers, while
allowing Murphy to continue it's 23+ year success story.

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com

-------------------------------orig.-------------------------
On Friday 15 August 2008 14:59, Gary Gustafson wrote:
I think that an interesting piece of information that could be
posted on the Murphy website would be how many orders are in
queue for each aircraft model. So if Murphy intends to manufacture
in batches of 10, it might encourage buyers to place an order
earlier if there were already 8 orders in queue. In like respect,
if the manufacturing run has started some people might be hesitant
to place an order if they know that 10 orders have to be received
before deliveries can start. I think this would be helpful to have
this tally updated weekly on the Murphy website (which should be
easy)

Just a thought


-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of Bob
Patterson
Sent: Thursday, August 14, 2008 4:07 PM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] Mam Info --> News on Murphy's new business
model


Hi Keith !

That was probably a good thing to do...

Sorry - this will be long, but there's a lot to say !

I'm still adjusting to the new setup, and things are
still changing quickly - so, I will outline things as I understand
them to be at the moment. There will be more news
as I get it. The factory is working to put more support
agreements in place with parts suppliers, and we should
have some good news soon ....

I've just started doing all of the retail kit sales support
2 days ago, and am a bit overwhelmed by the amount of email
coming daily - but I'll adjust ! There is a LOT of interest out there
in our kits - even in this economy, folks appreciate the value !

The Shipping Dept. will still be looking after parts orders
and shipping details. Please leave VOICE MAIL MESSAGES,
with DETAILS - working efficiently means there won't always be
someone to answer directly ! Ideally, they'll set aside a
daily time slot to answer calls, by phone or email.
Most large companies work this way today ....
I miss that personal contact too - but as long as the system
works, I'll get used to it.

Murphy are committed to supplying complete kits, so
anyone who has ordered partial kits in the past (wings, tail ..)
WILL definitely be able to order just the remaining kits
they need to finish up. Nobody will be left high 'n dry ....
Get those orders in !
==================================
That said, from now on, we will only be selling COMPLETE
KITS to NEW customers - the headaches of tracking & supporting
the partial kits just aren't worthwhile. We will be taking
orders, "on accumulation" - meaning that customers
will know that the moment we have accumulated 10 orders for that kit,
we will be after a deposit, and delivery will be approx.
5 - 7 weeks after we start production. In the long run,
this will be better for the customer, as it will remove
uncertainty about the delivery date.
------------ snip ! ---------------------------





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Kevin Brennan

[rebel-builders] News on Murphy's new business model

Post by Kevin Brennan » Sun Feb 19, 2012 4:51 pm

Bob
Who will be handling the US sales and marketing?

Bob Patterson <bobp@prosumers.ca> wrote:

Thanks Gary !

A good thought - and one that might be helpful....
maybe the factory could post the start dates for runs,
once they receive the orders, so folks could contact their
local distributor and try to add on an order. There
would only be a few days leeway, I would expect.

This is a different business model, and will take
a bit of getting used to ! Basically, the factory is delegating
(outsourcing) sales and marketing to the distributors.
This reduces their overhead, and allows them to concentrate
on their core business - manufacturing parts !

Currently, each of the distributors will be accumulating
their own orders - they won't go to the factory until
they have 10, or more, depending on the country.
It will be up to the distributors to obtain the
order confirmations & deposits, since
the factory will not be doing sales and marketing,
but rather serving as a "parts manufacturer".

This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.

Please keep the suggestions flowing - we need all the
help we can get to make this work ! Maybe we need separate
sections on the MAM web site for each of the distributors -
or links, for those who already have their own sites....

It's a 'work in progress' right now - and we all want to
end up with a model that looks after the customers, while
allowing Murphy to continue it's 23+ year success story.

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com

-------------------------------orig.-------------------------
On Friday 15 August 2008 14:59, Gary Gustafson wrote:
I think that an interesting piece of information that could be
posted on the Murphy website would be how many orders are in
queue for each aircraft model. So if Murphy intends to manufacture
in batches of 10, it might encourage buyers to place an order
earlier if there were already 8 orders in queue. In like respect,
if the manufacturing run has started some people might be hesitant
to place an order if they know that 10 orders have to be received
before deliveries can start. I think this would be helpful to have
this tally updated weekly on the Murphy website (which should be
easy)

Just a thought


-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of Bob
Patterson
Sent: Thursday, August 14, 2008 4:07 PM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] Mam Info --> News on Murphy's new business
model


Hi Keith !

That was probably a good thing to do...

Sorry - this will be long, but there's a lot to say !

I'm still adjusting to the new setup, and things are
still changing quickly - so, I will outline things as I understand
them to be at the moment. There will be more news
as I get it. The factory is working to put more support
agreements in place with parts suppliers, and we should
have some good news soon ....

I've just started doing all of the retail kit sales support
2 days ago, and am a bit overwhelmed by the amount of email
coming daily - but I'll adjust ! There is a LOT of interest out there
in our kits - even in this economy, folks appreciate the value !

The Shipping Dept. will still be looking after parts orders
and shipping details. Please leave VOICE MAIL MESSAGES,
with DETAILS - working efficiently means there won't always be
someone to answer directly ! Ideally, they'll set aside a
daily time slot to answer calls, by phone or email.
Most large companies work this way today ....
I miss that personal contact too - but as long as the system
works, I'll get used to it.

Murphy are committed to supplying complete kits, so
anyone who has ordered partial kits in the past (wings, tail ..)
WILL definitely be able to order just the remaining kits
they need to finish up. Nobody will be left high 'n dry ....
Get those orders in !
==================================
That said, from now on, we will only be selling COMPLETE
KITS to NEW customers - the headaches of tracking & supporting
the partial kits just aren't worthwhile. We will be taking
orders, "on accumulation" - meaning that customers
will know that the moment we have accumulated 10 orders for that kit,
we will be after a deposit, and delivery will be approx.
5 - 7 weeks after we start production. In the long run,
this will be better for the customer, as it will remove
uncertainty about the delivery date.
------------ snip ! ---------------------------





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Kevin Brennan




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Chris Hodgson

[rebel-builders] News on Murphy's new business model

Post by Chris Hodgson » Sun Feb 19, 2012 4:51 pm

Bob,
Why wouldn't all the distributors accumulate their orders together to get to
ten. MAM could then ship the fraction of the ten to each distributor. The
problem is the set up, not the shipping. Otherwise a kit builder might be
reluctant to wait for his/her "slow" distributor to accumulate 10 orders.
Chris

-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of Bob
Patterson
Sent: August 15, 2008 8:41 AM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] News on Murphy's new business model


Thanks Gary !

A good thought - and one that might be helpful....
maybe the factory could post the start dates for runs,
once they receive the orders, so folks could contact their
local distributor and try to add on an order. There
would only be a few days leeway, I would expect.

This is a different business model, and will take
a bit of getting used to ! Basically, the factory is delegating
(outsourcing) sales and marketing to the distributors.
This reduces their overhead, and allows them to concentrate
on their core business - manufacturing parts !

Currently, each of the distributors will be accumulating
their own orders - they won't go to the factory until
they have 10, or more, depending on the country.
It will be up to the distributors to obtain the
order confirmations & deposits, since
the factory will not be doing sales and marketing,
but rather serving as a "parts manufacturer".

This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.

Please keep the suggestions flowing - we need all the
help we can get to make this work ! Maybe we need separate
sections on the MAM web site for each of the distributors -
or links, for those who already have their own sites....

It's a 'work in progress' right now - and we all want to
end up with a model that looks after the customers, while
allowing Murphy to continue it's 23+ year success story.

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com

-------------------------------orig.-------------------------
On Friday 15 August 2008 14:59, Gary Gustafson wrote:
I think that an interesting piece of information that could be
posted on the Murphy website would be how many orders are in
queue for each aircraft model. So if Murphy intends to manufacture
in batches of 10, it might encourage buyers to place an order
earlier if there were already 8 orders in queue. In like respect,
if the manufacturing run has started some people might be hesitant
to place an order if they know that 10 orders have to be received
before deliveries can start. I think this would be helpful to have
this tally updated weekly on the Murphy website (which should be
easy)

Just a thought


-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of Bob
Patterson
Sent: Thursday, August 14, 2008 4:07 PM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] Mam Info --> News on Murphy's new business
model


Hi Keith !

That was probably a good thing to do...

Sorry - this will be long, but there's a lot to say !

I'm still adjusting to the new setup, and things are
still changing quickly - so, I will outline things as I understand
them to be at the moment. There will be more news
as I get it. The factory is working to put more support
agreements in place with parts suppliers, and we should
have some good news soon ....

I've just started doing all of the retail kit sales support
2 days ago, and am a bit overwhelmed by the amount of email
coming daily - but I'll adjust ! There is a LOT of interest out there
in our kits - even in this economy, folks appreciate the value !

The Shipping Dept. will still be looking after parts orders
and shipping details. Please leave VOICE MAIL MESSAGES,
with DETAILS - working efficiently means there won't always be
someone to answer directly ! Ideally, they'll set aside a
daily time slot to answer calls, by phone or email.
Most large companies work this way today ....
I miss that personal contact too - but as long as the system
works, I'll get used to it.

Murphy are committed to supplying complete kits, so
anyone who has ordered partial kits in the past (wings, tail ..)
WILL definitely be able to order just the remaining kits
they need to finish up. Nobody will be left high 'n dry ....
Get those orders in !
==================================
That said, from now on, we will only be selling COMPLETE
KITS to NEW customers - the headaches of tracking & supporting
the partial kits just aren't worthwhile. We will be taking
orders, "on accumulation" - meaning that customers
will know that the moment we have accumulated 10 orders for that kit,
we will be after a deposit, and delivery will be approx.
5 - 7 weeks after we start production. In the long run,
this will be better for the customer, as it will remove
uncertainty about the delivery date.
------------ snip ! ---------------------------





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-----------------------------------------------------------------








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Dionne, Jacques

[rebel-builders] News on Murphy's new business model

Post by Dionne, Jacques » Sun Feb 19, 2012 4:51 pm

G'Day

I think it is a smart and innovative way for MAM to re-structure in
order to ensure survival. It builds confidence in the MAM design and
products. In the process, let's ensure that we don't develop too many
layers to address the sale/marketing aspects that MAM has decided to let
go. Otherwise the cost of all these layers will be shared among the
present and future buyers. This builders group is amazing and
tremendously resourceful, I'm sure we can make it good for everyone.

The number of orders should be tallied up by MAM not the distributors,
that way MAM can make the decision sooner when it is more cost effective
to produce kit parts.

Even though each builder is considered the a/c manufacturer for the
aircraft he builds, the holder of the equivalent to "type design" still
has to remain with MAM. They are the ones with the design criteria,
assumptions and loads analysis.

Jacques Dionne
283 SR

-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of
Bob Patterson
Sent: Friday, August 15, 2008 11:41 AM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] News on Murphy's new business model


Thanks Gary !

A good thought - and one that might be helpful....
maybe the factory could post the start dates for runs,
once they receive the orders, so folks could contact their
local distributor and try to add on an order. There
would only be a few days leeway, I would expect.

This is a different business model, and will take
a bit of getting used to ! Basically, the factory is delegating
(outsourcing) sales and marketing to the distributors.
This reduces their overhead, and allows them to concentrate
on their core business - manufacturing parts !

Currently, each of the distributors will be accumulating
their own orders - they won't go to the factory until
they have 10, or more, depending on the country.
It will be up to the distributors to obtain the
order confirmations & deposits, since
the factory will not be doing sales and marketing,
but rather serving as a "parts manufacturer".

This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.

Please keep the suggestions flowing - we need all the
help we can get to make this work ! Maybe we need separate
sections on the MAM web site for each of the distributors -
or links, for those who already have their own sites....

It's a 'work in progress' right now - and we all want to
end up with a model that looks after the customers, while
allowing Murphy to continue it's 23+ year success story.

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com

-------------------------------orig.-------------------------
On Friday 15 August 2008 14:59, Gary Gustafson wrote:
I think that an interesting piece of information that could be
posted on the Murphy website would be how many orders are in
queue for each aircraft model. So if Murphy intends to manufacture
in batches of 10, it might encourage buyers to place an order
earlier if there were already 8 orders in queue. In like respect,
if the manufacturing run has started some people might be hesitant
to place an order if they know that 10 orders have to be received
before deliveries can start. I think this would be helpful to have
this tally updated weekly on the Murphy website (which should be
easy)

Just a thought


-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of
Bob
Patterson
Sent: Thursday, August 14, 2008 4:07 PM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] Mam Info --> News on Murphy's new
business
model


Hi Keith !

That was probably a good thing to do...

Sorry - this will be long, but there's a lot to say !

I'm still adjusting to the new setup, and things are
still changing quickly - so, I will outline things as I understand
them to be at the moment. There will be more news
as I get it. The factory is working to put more support
agreements in place with parts suppliers, and we should
have some good news soon ....

I've just started doing all of the retail kit sales support
2 days ago, and am a bit overwhelmed by the amount of email
coming daily - but I'll adjust ! There is a LOT of interest out
there
in our kits - even in this economy, folks appreciate the value !

The Shipping Dept. will still be looking after parts orders
and shipping details. Please leave VOICE MAIL MESSAGES,
with DETAILS - working efficiently means there won't always be
someone to answer directly ! Ideally, they'll set aside a
daily time slot to answer calls, by phone or email.
Most large companies work this way today ....
I miss that personal contact too - but as long as the system
works, I'll get used to it.

Murphy are committed to supplying complete kits, so
anyone who has ordered partial kits in the past (wings, tail ..)
WILL definitely be able to order just the remaining kits
they need to finish up. Nobody will be left high 'n dry ....
Get those orders in !
==================================
That said, from now on, we will only be selling COMPLETE
KITS to NEW customers - the headaches of tracking & supporting
the partial kits just aren't worthwhile. We will be taking
orders, "on accumulation" - meaning that customers
will know that the moment we have accumulated 10 orders for that kit,
we will be after a deposit, and delivery will be approx.
5 - 7 weeks after we start production. In the long run,
this will be better for the customer, as it will remove
uncertainty about the delivery date.
------------ snip ! ---------------------------





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Bob Patterson

[rebel-builders] News on Murphy's new business model

Post by Bob Patterson » Sun Feb 19, 2012 4:51 pm

Hi Chris !

Do you know which GM dealer in your area is getting the
next shipment ??? Did you know that some car dealers place
orders for several vehicles of one configuration for their
own stock - with deliveries scheduled over a number of
months ?? (Ever wonder why there are so many white cars ??)
Will Ford ship a single car to a dealer in Africa ??

The distributors are in different countries - there are different
requirements to ship to, say Australia, than there are to Belgium,
Italy, or Russia. Murphy are free to set pricing, kit contents,
and order minimums for each area - and distributors might want
to order 5 or 10 kits for their own stock. Each distributor has
his own business to run - and may not want to share orders,
or payment responsibilities, with other countries !

Many years ago, when Murphy had dealers, they had to buy
at least one of each model, plus a supply of parts, to get the dealership.
Sometimes, they ordered 5 or 10 of one kit, to get the price
they wanted, and to have control over local deliveries.
They were independent businesses, with their own advertising
and sales structures.

Basically, the factory doesn't need the headache of dealing
with individual orders. When an order comes in for 10 kits,
they will manufacture it. If they get several orders for
10 kits each, then things will get a LOT better.

This really isn't THAT much different from what has been
happening - the factory has been trying to do production runs
of 10 or 20 at a time for several years. As the flow of orders
has slowed, this has caused some grumbles about long delivery
times, from some customers..... Now, each distributor will
be better able to advise his customers on delivery, and nobody
will have to lay out 50% deposits until the run is ready -
should make for happier customers !

They are looking at manufacturing parts for certified aircraft,
where orders could run to 1,000 pieces of a single part !! At
the moment, the kitplane business just does not support the
OLD BUSINESS MODEL ! Somebody has to innovate !

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com

-------------------------------orig.-------------------------
On Friday 15 August 2008 17:47, Chris Hodgson wrote:
Bob,
Why wouldn't all the distributors accumulate their orders together to get
to ten. MAM could then ship the fraction of the ten to each distributor.
The problem is the set up, not the shipping. Otherwise a kit builder
might be reluctant to wait for his/her "slow" distributor to accumulate 10
orders. Chris

-----Original Message-----
From: mike.davis@dcsol.com [mailto:mike.davis@dcsol.com] On Behalf Of Bob
Patterson
Sent: August 15, 2008 8:41 AM
To: rebel-builders@dcsol.com
Subject: Re: [rebel-builders] News on Murphy's new business model


Thanks Gary !

A good thought - and one that might be helpful....
maybe the factory could post the start dates for runs,
once they receive the orders, so folks could contact their
local distributor and try to add on an order. There
would only be a few days leeway, I would expect.

This is a different business model, and will take
a bit of getting used to ! Basically, the factory is delegating
(outsourcing) sales and marketing to the distributors.
This reduces their overhead, and allows them to concentrate
on their core business - manufacturing parts !

Currently, each of the distributors will be accumulating
their own orders - they won't go to the factory until
they have 10, or more, depending on the country.
It will be up to the distributors to obtain the
order confirmations & deposits, since
the factory will not be doing sales and marketing,
but rather serving as a "parts manufacturer".

This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.

Please keep the suggestions flowing - we need all the
help we can get to make this work ! Maybe we need separate
sections on the MAM web site for each of the distributors -
or links, for those who already have their own sites....

It's a 'work in progress' right now - and we all want to
end up with a model that looks after the customers, while
allowing Murphy to continue it's 23+ year success story.

--
......bobp
bobp@prosumers.ca
http://www.prosumers.ca/Ramble08

http://bpatterson.qhealthbeauty.com
http://apatterson2.qhealthzone.com
http://apatterson2.ordermygift.com



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Bob Patterson

[rebel-builders] News on Murphy's new business model

Post by Bob Patterson » Sun Feb 19, 2012 4:51 pm

Hi Kevin !

If you're ready to place an order, I'll be pleased to
look after you today ! :-) ;-)

--

.....bobp
MurphySales@gmail.com
http://www.murphyair.com

Robert Patterson,
Factory Rep.
Murphy Aircraft Mfg. Ltd.,
22 Baronwood Ct.,
Brampton, ON L6V 3H6
(905) 457-5238 9am - 10pm 7 days

-------------------------------orig.-------------------------
On Friday 15 August 2008 16:54, Kevin Brennan wrote:
Bob
Who will be handling the US sales and marketing?
-------------------------------------------------------------------------

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Ken

[rebel-builders] News on Murphy's new business model

Post by Ken » Sun Feb 19, 2012 4:51 pm

Warning - rambling thoughts from someone who knows little about the kit
business.

My thoughts are that a purchaser MUST be confident of delivery within 6
months max or he will go a different route. Even 6 months probably would
need periodic teasers like a recommended tool list, plans for a table,
and the first chapter of the manual or the whole manual on disk. Try to
arrange a flight after a few months if he hasn't had one. Price goes
down 3% or free shipping if it takes longer than 6 months.

Even in Canada my shipping and import costs for various orders from
third parties were significant. For a first time builder outside the
U.S., there is value in getting most of the parts in one shipment or in
one additional shipment. Having to deal with more than one extra third
party would start to diminish the point of buying a kit.

IMO this business model is very different than the automotive marketing
method. Automobile dealers are primarily quick repair, service, and
warranty facilities that occasionally also make money on sales. I'm told
that most new cars are purchased off the lot based on what is available
for immediate delivery and the fact that most option packages are in
fact immediately available. That's despite the fact that most cars are
not really needed immediately by the purchaser, and used ones and
rentals are readily available. In addition to other issues, there is
impulse buying and there is the instant gratification need once one has
made a decision. That is one of the significant changes that I've
watched occur in homebuilding. First it made kits popular, then quick
builds, then assistance facilities, and it helps keep resale values up.
Financing is often also uncertain with an uncertain delivery date.

Fast delivery is important. MAM has clearly decided that is not a
profitable thing to stock any kits but I still wonder.
Financing/inventory costs are currently low and material and labor costs
have been rising.

For example I think there is a market for many (hundreds?) LSA aircraft
right now if they were available for immediate delivery. No need to be
the best or cheapest. No waiting for importation and other unanticipated
hassles - take it home today. Now that would be like automobile
marketing. Immediate gratification ;)

Parts supply is interesting. Personally there are darn few replacement
parts that I'd wait very long for MAM to produce if they weren't
stocked. Seems like an invitation to third party suppliers to me...

Ken
This is very much like the automotive business -
you go to your local dealer for test drives and ordering.
They then deal with General Motors, or whoever,
to get you your car. You would not call GM directly ...
It's not that they don't want to talk to you - they just
aren't set up to support individual customers.


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Ron Shannon

[rebel-builders] News on Murphy's new business model

Post by Ron Shannon » Sun Feb 19, 2012 4:51 pm

On Sun, Aug 17, 2008 at 4:58 PM, Ken <klehman@albedo.net> wrote:
Warning - rambling thoughts from someone who knows little about the kit
business.
...
Ken has raised a number of good points, particularly regarding delivery
delays which, as we know, has already been a serious problem at MAM. I have
some more rambling thoughts, and questions.

It would be interesting to know what committments, if any, MAM has made to
the distributors, i.e., delivery, longevity, etc.? With whom will the buyer
now be contracting? To whom will deposit & purchase money go? Is MAM
outsourcing support as well?

In the distribution agreements, has MAM done anything to control marketing
done by the distributors, i.e., use of trademarks, claims of quality,
features, delivery, documentation, web presence, etc.? If not, and in any
case, MAM appears to be distancing itself from complete "ownership" of the
airplane business. Are any other original homebuilt manufacturers using such
a business model? Will MAM end up selling the parts supply business to
Aircraft Spruce, or Wag-Aero, or...?

One of the significant advantages MAM has had is a market perception that
whatever other faults may exist, it _is_ one of the few kit builders to
still be in business after a couple decades. However, this change in
business model may at least dilute, if not call into question, that
reputation. If MAM is just a third party parts supplier... that's a very
different role than the market has understood MAM will provide. I could go
on....

I've thought about stocking up on a few extra hard-to-find replacement parts
before (windshield?) which seems all the more prudent now.

Ron
254R
http://n254mr.com




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