We grew up in ag chem. It's in our blood. One of our first applications was a bottle necker for FMC corporation that we produced in 1981. It was for Furadan granular which was taken off the market in 1998. Back then, the industry was full of great opportunities as every ag chem company needed a copy expansion solution. There was little competition. The very largest players wanted the best looking copy expansion labels and were willing to pay for them. The booklet label was in its early days.
Fast forward to 2006-What a vastly different story. The competition for booklet label business in the ag sector is fierce and at times, almost ridiculous. There is one company in particular that sells its products so low that nobody can figure out how they make money. The truth is that it is widely believed that the company won't survive for long using a "cut rate" philosophy. When a company cuts its prices by 10%, it almost has to double volume to compensate. That's a losing strategy. This is the typical story when a market becomes commoditized.
If you want to play in them, then you have to adapt in responsible ways. And, adapt we have done. The competition has made us better and stronger. Ag chem is still a major portion of our business.
We have reviewed our operation and made ourselves more efficient which has resulted in new pricing that hasn't reduced our margins. We made our already exceptional customer service better by finding news ways to satisfy our ag customers. For those who are using commodity players, we are offering a special offer for switching to JH Bertrand. We'll pay for die, plate and artwork costs for switching provided the business volumes are significant enough. Once the artwork is with JH Bertrand, on the next run, we will resume our normal plate, die and artwork charges. The customers that understand and appreciate JH Bertrand know that we have to charge a fair price to maintain our exceptional service, quality, delivery and flexibility.
I feel very good about the work that we have done at JH Bertrand. We will never be as low priced (on purpose-we aren't interested in going out of business) as some of the commodity players our there, but we make it up in being an exceptionally dependable supplier. When you give us an order, you can bank on the delivery. Our quality is first rate. We are meticulous and will give your project the attention and time it needs. We have no debt and run a very conservative operation.
With a slightly more competitive price (from efficiency gains) and some service improvements, JH Bertrand is making very good headway in the commodity ag chem market.
Jeff