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ValuePack Offer FAQs
<Objectives>
<Customer Perspective>
<The Implementation>
| 1. |
What is ValuePack Offer?
We have observed that bulk of the Plate problems experienced by our customers relate to improper use of platemaking & pressroom chemistry. To induce the end-users to standardise their platemaking chemistry, we started bundling our Plate Developer along with our Plates a couple of years ago. The results have been very encouraging : The industry average of cancellations has dropped dramatically, along with a reduction in trouble-shooting calls made by our Tech Support Team. The logical path forward, recommended to us by many end-users, is to extend the concept of bundling to other chemicals, which impact Plate performance viz. Founts, Plate Cleaners; Finishers; Delete, Washes; etc.
As the next step, therefore, we are launching the ValuePack Offer, which bundles TechNova Plates & Founts. As you know, the right Fount makes the difference… between a perfect print and a washed out one… between a Plate that performs as promised and the one that lets you down…. between a press with a trouble-free long life and the one that corrodes.
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| 2. |
How does it work?
Price of the Fount is to be included in the price of the Plate @ 5% of the end-user price of the Plates purchased. The 5% formula is arrived at based on the data that approx. 250ml of Fount is consumed for each m2 of Plate, with the average run-lengths observed in the Dings segment in India. The value of 250ml of a standard Fount works out to approx. 5% of the end-user cost per m2 of a medium run Plate e.g. Midas. For more expensive Plates, the customer may use a more expensive Fount e.g. Alympia user will use Nectar. Again, the 5% formula seems to work well. There may be exceptions, which the ValuePack Coupon scheme is expected to take care of.
The increase of 5% in the price of all Plates (except Gemini), is inevitable due to cost increases (as per data provided elsewhere in this note). However, this price increase can be neutralized when the customer chooses to use TechNova Fount. With the consent of the customer a ValuePack Coupon of a value equal to 5% of the amount of the Plate invoice will be provided. The ValuePack Coupon will be issued by the TechNova Dealer with his own company seal, along with the invoice for the Plates. The customer is entitled to exchange the Coupon against supply of TechNova Fount of his choice of an equal value from the TechNova Dealer from whom he has received the ValuePack Coupon.
If the customer wishes to purchase Founts of a higher value than the Coupon Value, he can pay for the additional amount and purchase the Fount from any TechNova Dealer. If he wishes to buy Founts of a lower value, he can utilize the balance value of the Coupon to purchase other Plate related chemicals such as Plate Cleaners, Finishers, Delete, etc. from the TechNova Dealer. Details of how the entire scheme will operate are provided elsewhere in this note.
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| 3. |
Does this scheme apply to all types of Plates and Founts supplied by TechNova?
Yes, it applies to all branded products of TechNova.
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| 4. |
Which are the products not included in the scheme?
EconoFount 102, EconoFount 104 and EconoFount 106 are excluded from the scope of the scheme.
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<Objectives>
| 5. |
What are the objectives behind the ValuePack Offer?
Our objective is to find the least painful way to absorb the increases in input costs, as we are determined NOT to pass them to our customers. The focus is on reducing our overhead costs & improving productivity.
The following input cost increases have been experienced since April 1999:
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Aluminium : 13%. Aluminium constitutes over 60% of the production costs.
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Power : 38%. PS Plate manufacturing is an extremely power intensive industry.
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Cost of Imported Raw Materials : 12%. Caused by Rupee devaluation of 12%.
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De-ionised Water : 78%. Pure water is an essential raw material for PS Plates.
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Personnel Costs : 47%. Despite higher level of productivity and automation.
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During the same period, we introduced a range of medium & short run, high-quality PS Plates at significantly lower prices to help our customers reduce their costs. These brands have now become industry favourites.
The net result is that the average cash price of our PS Plates has declined by 3% since April '99. Today, the ex-factory price of Indian PS Plates is amongst the lowest in the world!
The ValuePack Offer will help ensure standardisation of Founts, with its multiple benefits to the end-users. For TechNova, it would mean reduction in the cost of trouble-shooting calls. As you are aware, our Plate performance guarantee is void if compatible chemicals are not used. However, we provide free trouble-shooting service even to customers who do not use the recommended chemistry. The ValuePack Offer will help us to ensure that avoidable Plate problems do not occur, thereby minimising wasted tech support costs. This, in turn, will enable us to partially offset the increases in input costs.
Another objective is to prevent spurious Founts, sold under fraudulent TechNova packaging, from reaching the customers and causing Plate failures.
Yet another objective is to help users of high-end Plates to use high-end Founts to derive the maximum benefits from the Plates and their presses. The 5% ValuePack Coupon enables them to obtain the high-end Founts without any additional cash outflow.
Customers who do not opt for TechNova Founts, would end up paying 5% more for the Plates. This, in turn, will enable us to provide them with free technical support - which they will most probably require due to the Plate problems caused by the use of inferior Founts.
Most importantly, the objective is to demonstrate that use of TechNova Founts will result in a lower cost-in-use. The TechNova team has taken this up as their prime objective.
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<Customer Perspective>
| 6. |
How does the customer benefit by Fount bundling?
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As mentioned above, the prime benefit to the customer will be a reduction in the cost-in-use of the Plate-Fount combination. Each TechNova Fount is carefully formulated to be perfectly compatible with the Plate coatings & the hydrophilic surface, on the one hand, and the dampening system, on the other. Specifically, users of the recommended Founts experience : cleaner Plate background; longer run-lengths from each Plate; reduced water-feed; near-zero start-up waste; trouble-free press stoppages; faster drying; sharper & brighter prints; near-elimination of alcohol; prevention of press corrosion; etc.
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Also, as mentioned above, it will safeguard him against spurious Founts.
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The customer can choose any Fount that best suits his needs from TechNova's range without having to worry about the price.
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The mission of the TechNova Team will be to help each customer find the right Fount for him from our range.
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The customer can enter into an agreement with his dealer for supply of the Fount along with the Plates without having to order separately for the same.
Expected result : No hassles of ValuePack Coupon; better planning; guaranteed supply, better inventory control etc.
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The customer can standardize their quality with full support from the TechNova team. Expected result : Zero Plate failure; less dependence on TechNova support for trouble-shooting. |
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| 7. |
Does this mean that TechNova Plate customers are forced to use a TechNova Fount?
The customer is free not to use TechNova Fount. However, he will need to pay the legitimate cost increases of TechNova viz. 5% price increase on Plates.
Alternatively, he can try to switch to Gemini Plates which are available at a lower price than what he may be using currently. Gemini & DE are the most competitive brands in terms of price performance ratio, not just in India, but worldwide. Despite their very low price tag, they also come packaged with the ValuePack Offer.
Despite everything, if a customer is wedded to a high-end Fount for which TechNova has no substitute at this time, we offer to evaluate the Fount for compatibility with TechNova's Plates. If suitable, we shall certify it as such, and not charge him the additional 5% on Plates - until we can offer a similar or superior substitute. TechNova will continue to introduce Founts which will be better than the best in the market; hence, there should be no need for the customer to go to a competitor.
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| 8. |
Does this mean that the customer is paying extra for Plates?
The answers to this question has already been provided, indirectly, above. However, here is a summary of the answers :
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No : If the customer is currently a TechNova Plate and a TechNova Fount user. This ought to be true for almost all our customers if the market share figures for Plates & Founts provided by the TechNova Team are accurate!
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No : If the customer is currently using TechNova's Plates with a competitor's Fount which is : priced at the same level as a comparable Fount from TechNova's range; or is priced at a lower level but is causing a higher cost-in-use through higher paper wastage and/or inferior print quality and/or corrosion to the press and/or higher alcohol consumption and/or etc.
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No : If the customer switches from a higher priced TechNova Plate to Gemini, he would be saving instead of paying more. And yet he will get the Fount free, with its multiple benefits.
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Yes : If he is currently using a TechNova Plate along with a competitor's Fount which is either similar in performance but lower in price, or similar in price but superior in performance. In such a case, as mentioned above, the TechNova team will help the customer with the most acceptable solution.
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| 9. |
How will TechNova communicate the scheme to customers?
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TechNova has already provided a comprehensive circular letter explaining the scheme for helping the Dealers to explain the scheme to the customer.
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TechNova Team, MLPs and Dealers will explain the details of the scheme to their respective customers with the objective of creating instant acceptance and enthusiasm for the ValuePack Offer. This FAQ provides you with a list of possible questions and the recommended answers. If there are any questions that are not answered or understood, please immediately contact TechNova HelpDesk : help@technovaindia.com
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| 10. |
How will the scheme be implemented for proofing houses not requiring Founts equivalent to the 5% value of Plates?
TechNova dealer is free to offer chemicals other than Founts against the ValuePack coupons issued to such customers.
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<The Implementation>
| 11. |
What is the methodology adopted for implementation of the scheme?
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All Plates other than the Gemini brand will be invoiced to the Customer @ 5% increase on current price level.
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Gemini Plates will be invoiced at the current price level.
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Dealers will provide the customer with value coupons equivalent to 5% of the value of Plate invoice. Customers shall present the coupons to obtain Fount of equivalent value.
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Alternatively, the customer and the dealer may agree to a mutually acceptable arrangement to achieve the same objective.
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