Typically, when a company contacts customers about drastic price changes, it’s bad news.
Of course, Integrity Saw & Tool isn’t your typical company.
Earlier this year, IST gave their customers a reason to celebrate with an unexpected price reduction of 20 to 35 percent for carbide tool re-sharpening via CNC machines. For example, a standard endmill category was $22.75. Today, that same endmill is invoiced at $15.00, which includes cutoffs and re-fluting.
Rates for the same service hadn’t changed since 2000, back when prices had increased an average of 4 percent.
“Our sales trends revealed our custom tools were growing at a rapid rate, but our re-sharpening had dropped over the past several years. We needed to find a way to be more competitive,” Ted Stuckart, IST’s business development manager, said.
IST conducted a series of time studies on all major sharpening categories. The findings were good news for both IST and its customers: thanks to the implementation of lean manufacturing practices, along with ISO efforts, productivity had significantly increased while still maintaining the company’s high-quality standards.
“Because we look at our customers as partners, we wanted to share with them some of the savings we have been able to achieve,” Stuckart said.
IST continually strives to improve its processes through strong teamwork, lean practices and an investment in new equipment to reduce costs and remain competitive. In addition to its carbide re-sharpening services, the company has also made price reductions to custom tools with higher volume.
All of which resulted in some very shocked—and very pleased—customers.
“Our entire company realizes customers have a choice. Every employee here has the same goal: to provide our customers with products and services that exceed their expectation,” Stuckart said.
“And what better way to reward your partners for their loyalty than to share some of your successes with them?”
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