Anodized Aluminum

Many times, we sit down to see why something hasn’t been converted. Out of two groups we got 7-8 proforma invoices from, approximately 4 of them said they are still negotiating, meaning they have given it to the employer. More often, the main employer is not the decision-maker. Out of these four, the decision-making employer is the one that hasn’t converted yet. One of the reasons for this is that we didn’t have windows and profiles when we first got to know them and entered into transactions.

At one point, we tried to join with Arcopal Isfahan, and we even got samples from them. One of these was from Arcopal. We got a few proforma invoices from them, but they said they no longer work with windows. They changed their system; I don’t know why. Initially, they said they would send 30-40 windows for us, even sent samples, and wanted to work with us. Then suddenly, they decided to stop selling ready-made windows and only sell profiles.

We then talked to Kosar Arak. We had worked with them a few times in the past, so we know them. We also worked with Amirabadi. Mr. Hakimi is the owner of Akpa. I talked to the guys at Knauf, and they had a similar model. The number of specialists was low. I was a sales employee at the time and got ID cards for 180 people. They had a production of 7000. Maral Dar isn’t that big now. It’s big in volume but not in total production, about 15,000. Is Maral Dar’s unit special? Its tank is in Tabriz. Maral Dar is a name I think sounds like it. Some came to our office on the special road with a name similar to Maral Dar, having automatic door and window manufacturing.

Mr. Hakimi separated from Maral in 89-90 and went to Akpa. I want to say that Amirabad also set up their own investment and went to Akpa. The Akrol factory is much bigger than Akpa in terms of size and power. Iran Aluminum is separate from Akrol. Iran Aluminum produces ingots for the whole country. Akrol and Aluminow produce their own ingots. Their profile brand is Akrol, but their design name is Aluminow.

We were talking about why some things haven’t been converted. Four of them are still negotiating. Our price is a bit high compared to other customers. Out of those seven, two came to the office, and they said they want good quality, so they didn’t talk much about the price. One was 700 tomans, but they said they were given a price below 300 tomans elsewhere, but they don’t work with them because it’s strange to be 300 tomans below the price.

755 + 12% = 845.6
845 kilograms of profile for this project × 288,000 tomans (today’s profile price) = 243,532,000 tomans
The first row you proformaed for us is 324 million
324 million minus 243 million equals 81 million tomans profit on this profile (including marketer, worker, etc.), which is about 25%, 30%.
With glass and wages, you quoted me 700 tomans; we calculated this collaboration.
I think your percentage is also included in this amount, and it shouldn’t be over 80.
243 multiplied by 25% is 60 tomans, which includes your 5%.
243 multiplied by 0.35 is 85 tomans, including our percentage.

One thing that might increase our price in projects is that we add another 10%. We give you a total collaborative price without adding anything extra. Maybe in one project, you add 12%, another 6%, and another 25%. I included your 12%, so add another 10% yourself, making it about 20%, raising your price by 40 million.

In projects, 40 million isn’t a small number. Let’s remove percentages from the proforma so you don’t get confused. We gave you a collaborative price and a selling price. You add 10% on the customer’s price, I added 10%, making it 20%, raising the price. This way, both the marketer’s effort is wasted, and the customer who came once, if given a high price, may not return. If we don’t add anything to the proforma and use the customer’s price, it might be possible.

This method you’re suggesting is harder but better in reality. In windows, but in louvers, we reached the conclusion that if you tell us your profit, our profit, why you have this much, why we have this much, these conversations come up a lot. So, I think we should start with the same method, giving you a collaborative price to avoid mistakes.

We prepare the proforma this way for a few projects to avoid discussions about profit shares. Once our collaboration grows, trust builds up, and we can discuss it further. I have the experience that when you say give the customer’s price to us, we announce it to the customer. Suppose you wrote a project of one billion; how much profit do you take? I might say instead of 25%, let’s take 20% because it’s a big project. It’s better to take a project with low profit than not get it at all; at least it fills a percentage of our production.