Celebrate downtown development with this new interactive story map, charting the four decades of development that made Greenville what it is today.... Read on
We would like to welcome everyone to our newly updated website and thank you for taking the time to browse through it. Hopefully you will find the new site informative, helpful and interesting. We realize many of you may not have the opportunity to come visit us in Greenville, so our website might be the second best thing for you as you try to understand who we are, what we offer our customers, what our strengths are, etc, etc. I hope you will take time to make comments about some of the things you might like for us to include, what you like about the new site, and yes, what you may not think is pertinent. We appreciate the feedback; good, bad or indifferent.
One of the new things we have added to our site is, the Presidents Column. In this column, which I hope to update no less than quarterly, I will give my perspective on a range of topics from what's going on with raw materials and supply, to world events, and events that could impact each of us in our daily lives. Hopefully, some of the information will be informative and relevant to you, though no doubt, some of it will include my own "take" on certain issues.
April 2006 – The Reynolds Company became a subsidiary of ITOCHU International Inc., a global trading and investment company. The North American flagship company of ITOCHU Corporation, ITOCHU international provides trading services for more than 20,000 items and manages a portfolio of around 30 subsidiaries and affiliates as well as a diversified range of investments. Headquartered in New York and operating in the US, Canada and Mexico, the company is involved in a wide variety of businesses, with particular strength in the textiles; machinery; aerospace, electronics and IT; food; forest products, chemicals and general merchandise; and energy and alternative energy sectors.
Having been a part of the ITOCHU family now for almost ten years, our association with them has been very good for all concerned, particularly our employees. ITOCHU has allowed management to do what it does best, and they have given us the wherewithal to continue down the path of growth and opportunity for all of our employees. In the words of our President, Lex Reynolds; “We have enjoyed our relationship with ITOCHU, and they have treated us all as part of their family, and the joining of these two companies was probably one of the best things we have done”.
For more information please visit Itochu’s website: http://www.itochu.com/
August 2015 – The Reynolds Company has made significant capital investments company-wide since our inception. Today we spend well over $1 million annually to insure that we have the latest improvements to all our facilities. Some of the improvements we have made recently include:
- Our third pelletizer
- Bulk rail handling for most of our major raw materials, including waxes, resins, polymers and oil
- New storage tanks to allow us to pump off full rail cars at one time
- New individual boilers for each of our lines
- New screening / filtering capabilities to insure our products are “char-free”
Over the last several years, we have witnessed spiraling costs for all major raw materials due to a number of challenges.
The Reynolds Company has recently adopted the STOP safety program established by DuPont for making safe behavior and workplace conditions part of the work culture, thereby eliminating injuries and incidents.
It is no secret that there is at least one competitor in our industry that touts himself as the "Wal-Mart of the Adhesive World." Sadly, there are plenty of others who may not necessarily consider themselves Wal-Mart clones, but their actions in the marketplace seem to signify that they too espouse to the Wal-Mart ideals of "the lowest prices guaranteed."
What happened to all the talk about selling value? All I can figure is that we have too much capacity in the industry and the pie that we are all chasing is not growing fast enough to accommodate everyone. It is the proverbial supply / demand scenario where there is too much supply and not enough demand. The smaller, regional guys used to be the only ones who sold on price, however, now we have some of the larger players getting into the fight. We have all heard the stories, true or not, where a certain company has lost volume so one of their brilliant leaders challenges their sales group to go get business, damn the margins. Next year, these same leaders will challenge their sales group to grow their margins. It seems to be a vicious cycle of stupidity where the ultimate goal is to satisfy stockholders or board members, depending upon which way the wind is blowing. As for the little guys who only know how to sell on price, the only thing I can figure is that if they can make a few pennies a pound, they are happy. I also believe they don’t truly understand what their true costs are. They fail to consider the true costs for packaging, labor and overhead, and worst of all, they typically sell everything freight delivered, regardless of the size of the order. In case people have not noticed, freight is a very large nut these days and why in the world someone would pay the freight on, say, a drum of glue, which already has a low price on it to begin with, is beyond me. I simply don’t understand how their math works.
There is, no doubt, a lot of room in our industry for consolidation. I have heard it said that some of these “bottom dwellers” in our industry are simply trying to grow in order to make themselves attractive for a potential buyer. If I am a buyer and I am looking to grow my business, which would I prefer; a company with large revenues and low profit dollars or a smaller player with nice profit dollars? Unless I am missing something, value is derived not so much from size but from how much value a company brings to the bottom line. Certainly there are other considerations when buying a competitor, but unless I am totally out of bounds here, a company with decent profits is worth a lot more than one that simply has size to offer. When you get right down to it, unless you have some unique products to offer that no one else has, buyers ultimately pay a multiple of earnings, not revenues.
So, back to the original question; how do you sell value in a Wal-Mart world? No doubt this is a tough question these days, but I think you must seek ways to separate yourself from the rest of the pack. You have to choose your battles and opportunities and I can tell you for certain, it is not to be found in bid situations or in large company RFQ’s. These are nothing but a way to drive a customer’s costs down and your profits away. You need to chase opportunities where value is derived not by the lowest price, but where quality, service, and total costs have merit and truly mean something to the customer. I can cite a number of examples where we sell a given product at a higher price (a fair price) than a competitor would but the customer is willing to pay more for the total value he receives. On top of that he doesn’t have to go to sleep worrying about if his product will arrive in time or if his supplier’s product will work. He feels he is getting a good value for his money and that brings great comfort to him.
For those who sell on price and price alone think about it this way; your price is only as good as it is until the next guy comes in behind you and low-balls you. It’s typically a short sales cycle with not a hint of value associated with the sale. It’s all about price, price, price.
This industry has moved away from value selling to commodity selling, just like oil, or peanuts, or hog nuts. To many, it’s all about price and nothing more. Fortunately, there are some out there who will pay more for true value because they know that the old adage still rings true; you get what you pay for.