You buy the glass from the factory, right? We’re currently restricted to buying glass from you. Let’s say I buy a piece of glass for one million tomans. I sell it to you for one million and one hundred tomans. You say no, I’ll buy it for one million tomans, what’s the point? I’m okay with a hundred tomans (10%), I don’t have a problem with this percentage.
If you take responsibility for the breakages and other issues, our price will go down. But you don’t like the idea of someone else buying the goods for you and taking the loss. I’m selling the glass and taking responsibility, giving it to you for one million and one hundred. If you take responsibility for the breakages and such, our price will go down. I listed everything, and it cost me about 248 tomans, but all the responsibility is on them. They also added some things like aluminum coating, which cost around 6-7 tomans. Without it, it would be about 240 million. They even gave me a list for around 130 tomans for the supplies.
They said the glass costs this much; if you give me a discount, I’ll add it soon. If you give me 260 tomans instead of 250, the discount won’t do anything for you. But if there’s a problem with the work, you’ll think you should have paid 20 tomans more instead of 10 to get the job done right. I feel my price is 5% higher because I care about the job. It’s not like I take a job once and then say forget it. We care more than you do (Sir, the job isn’t ready, who will pick up the goods, etc.). We follow up on these matters ourselves.
If the profit is marginal, it becomes a risk. This glass I took is on the edge; if it breaks, I lose the 10 million I intended to profit from. This amount, for example, could be 200 million, a bit more. In 10 or 15 days, how much should we pay upfront?
Firstly, considering you’re in the market, a thousand things can happen in 10 days, including price increases. This job ultimately has a 5% margin. Why should we measure? We take 70% of the amount from you, produce your windows and glass, and keep it there. You might say you need it in two or three months. When it’s done, sometimes we say our factory won’t allow the glass to stay longer. We write a week, but we push it to keep it for 20 days.
I work in clothing, and due to the country’s inflation, I never keep cash. As soon as I get the money, I buy goods. Right now, given the sales situation, because all our sales are on credit, not cash, I gradually invest it in buildings. I want to give an example. If I want to put more money, I’d rather take it from my sales. Given the market conditions, sometimes the market is good; unfortunately, now with the changing seasons, I’d say take a bit less from me.
Consider our factory’s profit, office, etc. The 70% we take from you, believe me, we need to add 10% more to bring your goods. I can take all these goods without taking any money from you. Now tell me when and how much you’ll pay.
You measure, and when you come to sign the contract, I’ll say I can give you 100 tomans of this amount, almost 40%. Then, in the next 10-15 days, maybe I can give 20-30 tomans. It depends on the market. I’d like to pay it all the next morning. We either take a check from you or cash. We can’t do it with 40%. You’re not the only one; there are others with one billion, one and a half billion out there. We can reduce it by 10%, maybe to 60%, but with 40%, it’s not feasible.
It should be doable. If we need to take 100 million from you, we need to add 100 million to buy goods. When I’ve committed to you, there were months when the price of glass increased by 300 thousand tomans (per square meter) twice a month. If I don’t buy your glass, and the price doubles, do you accept it? I have to buy it because of our contract. To buy it, I need to pay cash for them to produce it. We take 100 million from you, add 100 million ourselves, depending on your project.
We don’t make a profit; we add 100 million ourselves. If you place your order now, it’s registered at today’s price. I don’t lose because I don’t keep cash and buy goods. As the price of your goods goes up, so does mine, naturally, I sell at the current price.
Years ago, about 6/7 years when inflation wasn’t like this, prices didn’t rise daily. We took 15-20%, telling the factory owner I’ll give you 2 million, 10 million more. It was like this. We sold glass to Iraq, Azerbaijan, Armenia in dollars. They’d rather not sell here (raw glass). Those who trade glass used to get it for a year, now it’s three months. For glass with services like cutting or tempering, it becomes cash because it incurs additional costs.
We cooperate with the customer as much as possible, but we’re getting hurt by these conditions. Our goods are shipped wrapped in plastic. If you want to protect it, I’d suggest covering it in plastic from the inside, so the workers aren’t bothered. Cover it all with tape from inside, let them finish their work. When we install the windows, maybe two get damaged, costing 30 million tomans at most. Just an example, it might not happen at all. But if something goes wrong there, it could cost billions. So, this method is a priority. We can deliver the job now, keeping your goal in mind. If you don’t mind the second option, install your windows.
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