Green Tissue-Tek Staining Racks

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From:"Klemme, Nancy" <nancy.klemme@sakuraus.com>
To:Histonet@pathology.swmed.edu
Reply-To:
Date:Mon, 20 Sep 1999 13:36:00 -0700
Content-Type:text/plain; charset="iso-8859-1"

I took Friday off and was amazed to see the "green-rack attack" postings this
morning.

I want to begin with an APOLOGY for anyone at Sakura who may not have shown a
sensitive understanding for your request of a product no longer available.  We
all have a right (maybe even a responsibility) to communicate our needs about
products to the sources that provide (or provided) the products; and we also
have a right to be listened to with courtesy.   It is with histologic empathy
that I share the Green Rack saga.

Beginning about 9 or 10 years ago, Tissue-Tek customers began asking for slide
racks which could be used in a microwave.  The number of those calls were
monitored along with the sales volume for nearly four years.  The business
decision to replace the metal-handled, 25-sloted slide racks was driven by
customer demand (requests).    The decision was to make the same basic rack and
place a (microwavable) handle in the center slide slot - - resulting in a
24-slide rack.   

When (Miles) Bayer made a business decision to end their histology division,
Sakura took on the Tissue-Tek product line.   Your e-mails were forwarded to
several  personnel at Sakura for review and additional response.

I do not know if the molds for the metal-handled racks were destroyed.  I can
tell you, though, that the cost to create new molds is in a low 6-figure/high
5-figure cost range.  Design and pre-production responsibilities would be in
the
low to mid 5-figure cost range.  Raw materials and production costs (high
5-figures)  plus QA, packaging and labeling are also factored into what,
ultimately, the cost per product would be.     Prior to all of this, a business
needs to identify the size of the market (how many will be bought?).   Knowing
that any company cannot operate at a loss, the products sold have to cover the
dollar investment into the product (just to break even).   How often and how
many of the old-style racks would you buy?   Say there is a market demand for
300 of these racks the first year and 100 racks the second year and another 100
racks the third year.  Just to break even, what would a company have to charge
per rack?

I used to begin sentences with "Why doesn't a company simply ............?  How
hard could it be?"    It may not necessarily be difficult, but even simple
products involve planning, preparation and responsiblities, all which have
costs
attached to them.    The change to the slide racks available today are the
result of a business decision based on customer requests.   

I don't know if this clarifies the issue, but I invite your further postings
and
concerns.

My best regards to all,

Nancy


Nancy Klemme, HT(ASCP)
Customer/Product Support Mgr.
Sakura Finetek USA, Inc.
1750  West 214th Street
Torrance, CA  90501

Web Page = www.sakuraus.com 
e-mail = nancy.klemme@sakuraus.com
Phone = 800/725-8723





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