A: Our philosophy at Midland is that we get involved in those areas of the project where we can add value. Our
core competency is metal fabrication. We do not make the assumption that we can purchase materials outside
of our area of expertise any better than our customer. If we focus on what we are best at and our customer does
the same, we feel the end user will receive the best and most cost effective solution.
Q: How does the order quantity impact the price of the product?
A: In custom manufacturing, the quantity of the production run has a large impact on price. Higher quantities
allow us to purchase outside materials at lower prices based on volume discounts. In addition, the initial set-up
of any production operation is time consuming and costly. The portion of this fixed costs assigned to each piece decreases as the number of pieces increase. Finally, the longer our operators work with a specific operation,
the more efficient the operator becomes as they learn new and better ways to increase output.
Q: How can I be confident that you will not steal my customer?
A: Midland Metal Products does not sell directly to the end user – typically a retailer or brand marketer and we have no interest in doing so. Midland sees the advertising agency as our extended sales force. We do not have
the resources to invest the time and the energy necessary to sell the next big project to Pepsi or Wal-Mart. In addition, we do not have expertise in the other materials necessary to create the best possible solution for the
end user.
Q: Who is responsible for getting the product from the factory to the store?
A: All purchase orders are accepted as FOB Midland Metal Products. Typically, our customers handle all transportation from our factory to its point of use. From a cost perspective, our customer is often in a much
better position to handle freight than us. Our customers service the large retailers or brand marketers who, in
turn, have negotiated very favorable rates with the nation’s largest carriers. Although the freight is FOB Midland Metal Products, we do support our customers by executing their logistics plans through carriers such as UPS, FedEx, Roadway, etc.
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