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We Need the Woods

FULL OF WOODS

By

G. W. WILSON

Manager Transportation Divisions

  Unquestionably General Electric has scooped the field on the industrial diesel-electric locomotive.  We have a low-priced standardized product, and can make relatively short shipment--a most potent sales combination.  This enviable position, however, like all good things, was attained and can be retained only be hard work and constant vigil.
  The manufacturing cycle on industrial diesel-electrics is from nine months to one year; from the start it was evident that only by undertaking some form of stock program could we be profitably competitive.  To make quick delivery and maintain low prices, we are placing manufacturing orders on the factory in anticipation of future sales.  By so doing, we more than halve delivery time, and enjoy the advantages of quantity production.
  Keeping our "pipeline" full of locomotives, however, entails considerable inventory and subsequent risk.  For example, assume that during the next six months district estimates of pending business justifies a planned delivery of a 25-tonner, a 45-tonner, a 65-tonner, and an 80-tonner per week.  To keep the "pipeline" full will require manufacturing commitments totalling $5,000,000.  Moreover, this building program and inherent "gamble" has to be sustained at that level so long as the districts continue to sell locomotives at that rate.  However, we have the faith in the G-E sales organization to continue this "blue chips" backing as long as the districts can uncover a reasonable market and feed us sizeable orders regularly.
  During the war, normal industrial locomotive prospects couldn't buy diesel-electrics.  However, these prospects,

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as well as existing users, had a chance to see how good diesel-electrics really are.  Now they are going to buy lots of them, and any easing off on our stock program is inviting the little fellow to grow up and bite us.
  Now that we have created this multi-million dollar industrial-locomotive business, we must not miss a bet.  Every sale that goes to a competitor by default undermines our position.  The surest way to protect our investment and keep it a profitable business is to make sure that every possible prospect is contacted.  When a prospect is uncovered, stick with him until he buys, or until it is doubly apparent that he can be crossed off the locomotive list.
  It won't be easy to remain the leader.  A competitor in a boastful mood once claimed that he alone had at least 16,000 steam dinkeys in service throughout the United States--three times as many as the G-E sales organization has uncovered to date.  We must "beat the bushes" for prospects, and then really push our standard industrial diesel-electric.  We in the General Office will help in every conceivable way, but primarily the burden of evaluating the market and promoting sales falls on the district organization.  You have just heard Buffalo's locomotive success story.  We are convinced that this is typical of what can be accomplished in other territories with the woods full of Woods.

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