We have now been hit. My company cut a few guys Friday
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Hey Oilfield Guys!!
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Our company has got several of those letters demanding we cut our prices. Anywhere from 10% up to 40%, or they just quit using us altogether. Had to let a couple of crews go, had to fire a couple of customers to, a company that works several pieces of equipment on a regular basis ask for a 10-15% cost reduction is something you can work with, a customer that only calls when their preferred company can't work them in, demands a 40% cut gets fired. It's cheaper to park equipment and wait. Hope we don't have wait to long or else I'm gonna be hiring out backhoes to put in food plots for some of you guys.
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Originally posted by KR-oldmexico View PostI just don't see how in the world anyone could or would cut rate by 40%!!Originally posted by Catarina View Post40% cut on prices is crazy. I've had some friends who got asked to cut prices by 20%, they are in the rental side. The company just asked for a flat 20% cut on everything that was on location, all the way down to portapotties.
As for my company, I'd cut prices some depending on which company asked, but not 40%
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Originally posted by hammer63 View PostRents a little but more of his work is service related.
I feel for him and wish him the best luck in the world!
Originally posted by tex4k View PostOur company has got several of those letters demanding we cut our prices. Anywhere from 10% up to 40%, or they just quit using us altogether. Had to let a couple of crews go, had to fire a couple of customers to, a company that works several pieces of equipment on a regular basis ask for a 10-15% cost reduction is something you can work with, a customer that only calls when their preferred company can't work them in, demands a 40% cut gets fired. It's cheaper to park equipment and wait. Hope we don't have wait to long or else I'm gonna be hiring out backhoes to put in food plots for some of you guys.
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Originally posted by 100%TtId View PostIf you can cover your variable costs of production and still cover some portion of your fixed costs, then selling with a 40% discount is better than no sales at all.
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We are sending a letter back to them today. We can possibly survive a 5% reduction in our prices for our goods but that is it. Hopefully it doesn't cost us our business. We have been busting our tail for them for the last 25 years and have a great relationship and have never raised prices when times were good. Hopefully that relationship will be enough. The costs they are asking for will not even cover our raw material costs. We would me machining the parts for free.
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Just rubs you the wrong way sometimes. The guy that sent over this price reduction request sent me over pictures 6 months back of all of their high end office guys with 200+ deer that they went and shot as a company bonus. How much are they actually cutting cost on their end? They want all of their suppliers to do the dirty work for them.
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Originally posted by Bowtech Shooter View PostWe are sending a letter back to them today. We can possibly survive a 5% reduction in our prices for our goods but that is it. Hopefully it doesn't cost us our business. We have been busting our tail for them for the last 25 years and have a great relationship and have never raised prices when times were good. Hopefully that relationship will be enough. The costs they are asking for will not even cover our raw material costs. We would me machining the parts for free.
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If yall have any leads please let me know:
My younger brother is looking. I dont know much about the actual jobs/titles, technical stuff on the rigs so bear with me ( Im on the manufacturing side ) The company he worked for allowed him to go to Mud School right when things went to crap. When he got out they had layed off and couldnt hire him back. He is a solids control/closed loop technician, service tech, skilled at centrifuge repair. He also has a drilling fluids engineering certificate. ( from the mud school I presume ). He has about 15yrs total in the oil field and has worked all over, offshore and land, Angola, ND, WYO, all over Texas, NM, OK etc.
Thanks
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Originally posted by Bowtech Shooter View PostJust rubs you the wrong way sometimes. The guy that sent over this price reduction request sent me over pictures 6 months back of all of their high end office guys with 200+ deer that they went and shot as a company bonus. How much are they actually cutting cost on their end? They want all of their suppliers to do the dirty work for them.
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Originally posted by RJK70 View PostPush back on them and see if they are bluffing. We have received many of these letters and only reduced pricing where the customer had a real case for it.
we let one customer have a 7% discount because of how much and often they order, every other customer got told respectfully, NO.
Only one customer has "quit using" us for commodities, but still buys motor parts from us
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