Hi all, This is one of my best experience working in automobile sector. I was being approached by tata motors to produce one of the components for their factory at Ahemdabad. It was a proud movement that I was about to become a Tata Motors supplier. I offer the price of my component at quite a low margins because I want the business for long term.

Here comes the twist, I met with Tata Motors General Manager Mr. Chakarborty (A bengali who started career with Tata Motors and stays on) He screwed me like hell for quoting low value and keeping margins low.

He said Tata Motors want to lift everyone including your labour and tea supplier. So we can not give you part at lower price, Please submit the quote again, chance is given because you are a start up entrepreneur. 

Hence I submit the quote again and find the order confirmed without negotiating single paisa.

For reference: old price was 80 and New price was 97.22. and I received the order for 97.22.

Thanks Mr. Tata for such a valuable learning.......

****

Editorial note by Alok - Please read 'Mr. Marwari, have you met Mr. Tata' on this site

(Ps - I would normally NEVER add a comment on someone else's post, but this was a compelling additional read.)

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Comment by Karan Pandhi on March 6, 2013 at 1:13am

Congratulations........ Tata is TATA ...... they let everyone earn, hats off to the Bengali Babu .....

Comment by Deepak Sharma on September 17, 2012 at 3:06pm

Tata Motors is coming up with CNG and diesel models and we got more business

Comment by Jay Kashyap Padhya on June 29, 2012 at 12:23pm

Totally awesome...!!

Way to go ahead

Comment by Deepak Shenoy on June 22, 2012 at 2:50pm

Heh - while it sounds cool, it comes from japan, no? Toyota, Honda, etc. even guarantee suppliers debts with their banks, offer them real estate, make sure they come with a minimum profitability. They even vet your balance sheets every year. To a large extent this makes sense because a supplier failure is simply unacceptable as it takes a lot of time to get additional supply on board, customers don't get parts etc. But I agree, Tata is way better than say a Kirloskar or a Reliance, whose suppliers are easily replaceable. (Tata doesn't do this for all their businesses, btw, only for certain parts of Tatamotors)

Comment by Chirag Jethmalani on June 22, 2012 at 11:52am

Whoo That's awesome.

Comment by Jitendra Chaturvedi on June 20, 2012 at 5:45pm

We have been working for Tata Motors for over a year now and the billing runs into crores. The twist that nobody would believe....we do not have a PO! They say an informal mail from a Tata Manager is more than enough security for a vendor. You bet. Never a delayed payment....never once a hassel. 

That's Tatas 

Comment by Aditya Babbar on June 20, 2012 at 1:31pm

My reading into this incident and a very very valuable lesson for Entrepreneurs.

Entrepreneur's kneejerk reaction to being able to deal/prospectively deal with a Big Name Client - "Let me quote this at a Lower Price to ensure I get the Order and Beat competition"
Big Name Client / Business House who truly values quality over price - "If she quotes lower, it would mean she would cut corners in the deliverable to ensure she can complete the order. The lower amount she makes, a lesser amount would be earmarked for quality standards, service and R&D, which would ultimately harm our product." 

So to all of us, lets ensure the pricing mechanism is not following an "undercut competition with lower pricing" psyche, but a "top value offering from our stables at competitive prices" psyche.

Agree ?

Comment by Durgesh Khandelwal on June 19, 2012 at 2:05am
Wow! !!! So heartening to read this about Tata.
It will beso intresting to understand how the culture is imbibed into the minds of the People who work.
Apt title for the post...
Comment by Gurpreet Singh Tikku on June 16, 2012 at 6:25pm

WOW!!! This is gr8.

And this is a Culture there and not a one off case. And the culture here goes Top Bottom and that is the only reason that it works so well!!
Best Wishes!!

Comment by Alok Rodinhood Kejriwal on June 16, 2012 at 4:48pm

MY GODDDDDDD.....

Have you read this blog of mine -  http://rodinhood.com/Mr-Marwari-Have-you-met-Mr-Tata

The RodinStar Post of the Week!

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