FORT WORTH, TEXAS (June 16, 2:30 p.m. EDT) — Resin Technology Inc. (Booth 4575) is taking the notion of putting your money where your mouth is to a whole new level.
The Fort Worth firm — which specializes in economical resin buying — is offering guaranteed annual savings of at least $50,000 to the first 10 new accounts it signs up, beginning with NPE 2003.
RTI has established what President Garland Strong calls “a fair baseline” by which firms buying more than 50 million pounds of resin a year are guaranteed at least $100,000. Firms buying between 20 million and 49 million pounds are guaranteed at least $75,000, while firms buying between 5 million and 19 million pounds are guaranteed at least $50,000.
If RTI falls short of those goals, it will make up the difference out of its own pocket, Strong said.
And, in actuality, those totals need to be doubled, since RTI makes its profit by receiving half the savings it attains for its clients. So for the client's savings to be $50,000-$100,000, the actual savings on resin buying has to be $100,000-$200,000. If its clients don't save, RTI gets nothing.
“We're trying to increase our business while at the same time showing how our service offers no risk to customers,” Strong said.
At NPE, RTI also is distributing copies of a resin price forecast the firm has prepared for the 2003-05 time period.
Since launching in 1997, RTI has grown to include a roster of more than 50 clients. The firm expects to consult on purchases of more than 2 billion pounds of resin this year.
The 13-employee company aims to get its clients' pricing into the lower third of the industry. The violent price increases absorbed by commodity resins highlight the need for a service such as RTI's, Strong added.
“Processors were getting killed pricewise in the first half [of 2003],” he said. “But [resin] suppliers are getting squeezed bad because they can't pass along increases in their raw material prices. It's been a tough situation all around.”
