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Do you really think the Mitsi is cheaper than the Cat?

A company that buys 2,500 trucks a year will always get a lower price than a bunch of Mitsi fits who collectively buy around 300 from MCFE.

The reason the Cat was more expensive in the marketplace was nothing to do with the price of the truck but more to do with the higher cost base that Briggs had compared to the low cost Mitsi dealers. It was Briggs need for a higher margin that made the Cat appear more expensive than the Mitsi.

Impact with their lower cost base than Briggs will be able to offer existing Cat users a lower rental rate for the Cat than Briggs could.

Unless Briggs do something about lowering their cost base they will be offering the Yale at around the same rental rate as they did with Cat.

Customers are not interested in what the product is but are interested in how low the rental rate is.
  • Posted 2 Sep 2010 02:26
  • By millreef
  • joined 24 May'10 - 63 messages
  • Staffordshire, United Kingdom

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