Below is an email sent to me by the District Sales Manager for EXIDE battery. Basically they want to offer a discounted price to all FVEAA member for their 6V and 8V batteries. To compare prices, EXIDE is willing to sell us GC125 (equal to T125 Trojans) for $89.99. Please tell me if I am wrong, but the best price I have heard recently for T125's is $135. I have been driving GC125's for over a year, and I have been very pleased with the performance, as good or better than Trojan. They also sell a GC110 (same as T105) for a steep discount, and 8volt batteries as well. Please tell me if we in FVEAA want to receive this benefit from EXIDE.
We still would have to return old core for new core, or pay the new core fee. We still would have to buy over six batteries to get delivery and we still have to pay with a credit card.
Tim,
Thank you for your time last night in discussing the battery needs of the Fox Valley Electric Auto Association. I believe we are on to something nice for your members to be able to take advantage of a standard price and consistent, high quality product of batteries. I spoke to my distributor up north in Crystal Lake , IL about the program briefly this morning. They have only a couple concerns about selling the Exide product at such low margins ($89.99 for GC-135 or GC-8V). Please review these concerns before speaking to members……
1) They are hit by Exide with a core charge of $15 for every one of these batteries that they purchase. Their customers either have to return a core to them or face a $15 core charge as well. This sounds like an issue to members converting a brand new vehicle but it is standard practice in the battery industry so probably understandable to your members.
2) At such low margins, it makes it difficult to cover the costs of delivery to the customer of fewer than 6 units. Can your members will call the batteries from their locations ( Crystal Lake and Bensenville ). I also plan to ask distributors anywhere where is most convenient for your members as well ( Hillside , etc).
3) Cash flow and collections…..do your members typically pay COD or with credit card?
Per our conversation, if you can touch briefly on this subject in your meeting tomorrow and try to get a consensus if this type of program would go well with the members or if they are already happy with their current battery supplier, we can make this program available almost immediately, and then work on growing it among some other distributors along the way.
Let me know your thoughts.
Kind Regards,
Steve Mezan
Exide Technologies
District Sales Manager
