Adi Sakthi has proposed a water cost increase from Rs.225 to Rs.300 for 4000 liter tank from June 2012 onwards. My guess is that they have given this number with a thought that we will negotiate Rs.10 or Rs.20 lower and settle for a lower number.
I heard from Mr.Kashikar that there are other water suppliers who can provide water for lower cost even less than Rs.225 even now. Does anyone have time to go find another vendor to replace Adi Sakthi?
Can someone suggest what is the cost we can or we should provide if we want to stay with Adi Sakthi?
I will talk to Aishwarya Opulence about this of what is the price they are giving now.
Adi Sakthi would not stop water anytime soon so there is no real threat that water would be stopped or something of that sort.
Adi Sakthi does not want their water supply to be cancelled in the month of June, because all water suppliers will have problem only during these months of March, April, May and not after June so they would like to hear from us within a week of what is the cost that we can give for water from June 2012. Adi Sakthi wants the other water resellers to provide water at a lower cost now.
They also want to sign a contract so that we dont back out from our deal from June 2012 because someone can give water at a lower cost in the months after June 2012.
About Adi Sakthi - how can he make such a increase all of a sudden? this is bit atrocious as with his words the other Lakshmi was canceled now. He is playing a trick. Sounds unprofessional to me. He should be called for next meeting and he should give proper justification before the committee to come with a solution for this. 75 bucks per tanker is going to really make the water budget sky rocket. Also how does he differential old and recent customers. He needs to be reasonable. This is just my opinion.
I think we need to take help of Naveen to figure out few other vendors and their existing rates before we call Adi Sakthi for discussion.
Regards,
-vinod.
Adi Sakthi did not say that there will be no increase in water cost. They said they will not increase it until June 2012. I will ask Naveen to enquire and get another vendor for water.
He started the discussion for the cost increase as of the month of June 2012 now, as he knows that we will not increase the cost after the month of June 2012 when rain has come. He is protecting his interest and we have to protect our interests.
From my point what he is doing is very fair, as we may conveniently switch to some other vendor in the month of June 2012 when or if he asks for an increase at that time, because now we have a switch to the lowest cost vendor policy and switch to vendor who accepts our rules. In June both water and power problems become better/ok and there will be multiple vendors to provide water at lower costs.
My suggestion is that either we should find another low cost vendor like Manjunath and trust him that he will supply as reliably as Adi Sakthi or negotiate a number acceptable for us. He has clearly stated that we will not be having any issues with water because of this discussion and wants to negotiate a number for June now and also writeup an agreement between Eldorado and him.
My suggestion is that we propose 10% increase to Rs.247.5 rounded to Rs.245 and find out if it is acceptable for him. If you still want to bring them in for discussion, I can ask Naveen to call them and ask them to come to our May 6th 2012 meeting.
But before we propose this cost we should find another vendor so that we can immediately switch. We can drag this discussion up until June and in the meanwhile find another vendor as well. I want to know who is ready, to look for and find a lower cost vendor. I will keep the discussion going and with no water interruption until we find another vendor.
Thanks,
Ranga.
Naveen enquired with Manjunath our alternate supplier and he is quoting Rs.450 for 6000 lts. He cant supply 4000 liter tankers.
I checked with Aishwarya and Ranga Reddy in Aishwarya Opulence and he said they are giving 5.5 paisa per liter of water (Rs.220 for 4000 liter tanker) and they are planning to negotiate to 6.25 paisa per liter of water (Rs.250 for 4000 Liter tanker).
If everyone agrees we can try to negotiate with Adi Sakthi for Rs.250 per tanker or negotiate with Manjunath for Rs.375 for 6000 liter tanker. This will increase our Water spend from an Average Rs.85000 to Rs.95000 per month.
Thanks,
Ranga.
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