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nuckolls.bob(at)aeroelect
Guest

Posted: Sat Dec 26, 2009 9:16 am Post subject: duracell battery leak

 	  Quote: 	
		  If enough of us are buying our batteries at Harbor Freight then it's 

safe to assume that Duracell will start making batteries that 

compete with the Chinese produced stuff rather than making the best 

batteries they know how to make.


	


   That poses a bit of a chicken/egg conundrum. Would

   you suppose that houses like Duracell sought out

   less expensive processes in order to compete with

   the Harbor Freight guys? Were that so, would it

   not follow that their ability to 'compete' would

   be annunciated by a reduction in prices?



   I've observed no changes in Duracell's market

   presence that would suggest they are feeling

   any pressure from H.F. or anyone else.



   It seems more likely that they have farmed out

   manufacturing duties to lower-cost houses in

   a move generally calculated to improve bottom line

   with the present market philosophy. It's quite common

   that manufacturers of many goods from washing

   machines to toasters and even flashlight cells

   will brand their output to the wishes of any

   customer.



   In the 'Connection I wrote about an alternator reman

   operation in Mexico that produced the identical

   part for sale under many brands and offered at

   several tiers of "quality" level. I'd rather

   imagine that alkaline cells are no different.

   The risk for sad outcomes is easy to imagine . . .

   especially when the collective pipelines are

   so very demanding of product flow.



   Suppose you have a marketing pipeline that MUST

   be filled 24/7/365 with boat-loads of alkaline

   cells. Suppose further that some manufacturing

   house you've partnered with has stubbed their toe.

   What period of time might elapse from the point that

   pressures of quality issues become so great that you seek

   alternative sources? And once demands for such

   a pipeline are being met, it seems that locating

   and switching to another source capable of meeting

   your product flow demands is not a simple task.



   Watch episodes of "Unwrapped". Put aside any

   attention to the product being showcased and

   consider the investment of time, talent and

   resources to craft a product, build a facility

   to manufacture including mind-boggling machines

   that churn out tons of product per day. All

   those products must be distributed to outlets

   already committed to purchase based on your

   marketing efforts. Then imagine the chaos

   that would ensue should a large manufacture

   of product for dozens of items and perhaps

   as many different brands stubs it's toe on

   a quality issue.



   If we were talking about Harbor Freight

   cells, no doubt the consensus would be, "Well,

   you get what you pay for." One automatically

   downgrades expectations of the low-cost

   brands. But suppose the same house is making

   both H.F. and Duracells . . . among many

   others. The fact that you paid for a whippy

   looking label, $millions$ in television and

   print advertising, and faith in a "quality

   brand" becomes more significant . . . even

   though the same factory made both products.



   That's why those oft maligned CEO's of

   honorable companies make so much money. They

   are supposed to be quite talented in the

   herding of cats while being good stewards of

   many $millions$ in investor funds and turning in

   a 6 to 10% profit year after year. Our collective

   observations about Duracells does not bode

   well for the folks responsible for herding

   the company's cats . . . nor for the folks

   who bought the cat food. It doesn't take a

   very big problem to seriously erode an otherwise

   consistent profit that made your stock so

   attractive LAST year.



   Bob . . .

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Speedy11(at)aol.com
Guest

Posted: Sun Dec 27, 2009 10:01 am Post subject: duracell battery leak

Well said, Bob.

 I started writing my response and then read yours.  Yours is much  better said than mine.

 Stan Sutterfield

 Do not archive

  	  Quote: 	
		  >If    enough of us are buying our batteries at Harbor Freight then it's 

 	  Quote: 	
		  safe    to assume that Duracell will start making batteries that 

compete with    the Chinese produced stuff rather than making the best 

batteries they    know how to make.


	


   That poses a bit of a chicken/egg    conundrum. Would

   you suppose that houses like Duracell sought    out

   less expensive processes in order to compete    with

   the Harbor Freight guys? Were that so, would    it

   not follow that their ability to 'compete'    would

   be annunciated by a reduction in    prices?



   I've observed no changes in Duracell's    market

   presence that would suggest they are    feeling

   any pressure from H.F. or anyone    else.



   It seems more likely that they have farmed    out

   manufacturing duties to lower-cost houses    in

   a move generally calculated to improve bottom    line

   with the present market philosophy. It's quite    common

   that manufacturers of many goods from    washing

   machines to toasters and even flashlight    cells

   will brand their output to the wishes of    any

   customer.



   In the 'Connection I wrote    about an alternator reman

   operation in Mexico that produced    the identical

   part for sale under many brands and offered    at

   several tiers of "quality" level. I'd    rather

   imagine that alkaline cells are no    different.

   The risk for sad outcomes is easy to imagine . .    .

   especially when the collective pipelines are

      so very demanding of product flow.



   Suppose you have a    marketing pipeline that MUST

   be filled 24/7/365 with    boat-loads of alkaline

   cells. Suppose further that some    manufacturing

   house you've partnered with has stubbed their    toe.

   What period of time might elapse from the point    that

   pressures of quality issues become so great that you    seek

   alternative sources? And once demands for    such

   a pipeline are being met, it seems that    locating

   and switching to another source capable of    meeting

   your product flow demands is not a simple    task.



   Watch episodes of "Unwrapped". Put aside    any

   attention to the product being showcased    and

   consider the investment of time, talent    and

   resources to craft a product, build a    facility

   to manufacture including mind-boggling    machines

   that churn out tons of product per day.    All

   those products must be distributed to    outlets

   already committed to purchase based on    your

   marketing efforts. Then imagine the chaos

      that would ensue should a large manufacture

   of product for    dozens of items and perhaps

   as many different brands stubs    it's toe on

   a quality issue.



   If we were    talking about Harbor Freight

   cells, no doubt the consensus    would be, "Well,

   you get what you pay for." One    automatically

   downgrades expectations of the    low-cost

   brands. But suppose the same house is    making

   both H.F. and Duracells . . . among    many

   others. The fact that you paid for a    whippy

   looking label, $millions$ in television    and

   print advertising, and faith in a "quality

      brand" becomes more significant . . . even

   though the same    factory made both products.



   That's why those oft maligned    CEO's of

   honorable companies make so much money.    They

   are supposed to be quite talented in the

      herding of cats while being good stewards of

   many $millions$    in investor funds and turning in

   a 6 to 10% profit year after    year. Our collective

   observations about Duracells does not    bode

   well for the folks responsible for    herding

   the company's cats . . . nor for the    folks

   who bought the cat food. It doesn't take    a

   very big problem to seriously erode an    otherwise

   consistent profit that made your stock    so

   attractive LAST year.



   Bob . .  	


 

  

  [quote][b]

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icubob(at)gmail.com
Guest

Posted: Sun Dec 27, 2009 3:06 pm Post subject: duracell battery leak

jim,

  if that was the case then duracell is trying to increase their profits as i dont see them competing with prices

   bob noffs



 On Sat, Dec 26, 2009 at 9:21 AM, rvtach <rvtach(at)msn.com (rvtach(at)msn.com)> wrote:

 [quote]--> AeroElectric-List message posted by: "rvtach" <rvtach(at)msn.com (rvtach(at)msn.com)>

 

Sometimes you get what you pay for. Sometimes it doesn't matter. But it's crazy what people try to save money on (airplane tickets, health insurance, car tires). When we buy the cheapest option available we force the higher quality providers of whatever product or service to compete with that option and so all the options available in the marketplace start to look a lot like the cheap stuff. If enough of us are buying our batteries at Harbor Freight then it's safe to assume that Duracell will start making batteries that compete with the Chinese produced stuff rather than making the best batteries they know how to make.

 

--------

Jim McChesney

Tucson, AZ

RV-7A Finishing Kit





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