Recently, we have been disturbed by published comments that are being made by an apparently bitter competitor. I very rarely respond to such "scare tactics" from increasingly desperate competitors, because, frankly, I think they are acting in an unethical manner, and we simply don’t wish to compete on the basis of half-truths or slander. That’s not the way to win business.

However, their recent statements are so outrageous that I feel compelled to respond with cold, hard facts. These are the REAL facts that should be no secret, and every word can be conclusively proven.

1. Our competitor accuses us of requiring "large deposits" because we "rob Peter to pay Paul". They claim the reason for deposits is that we don’t have any money. What a childish accusation! Firstly, our competitors have no idea whether we have any money or not...neither do we know about their financial status. If this was so true, then why do THEY require deposits? The answer is quite simple: we are a manufacturer. We build every piece of our frames from raw steel. We have an enormous investment in machine tools and skilled craftsmen. We build a sophisticated piece of construction equipment, and our customers clearly understand that with a huge backlog of sales...which we certainly have...a financial commitment on their part is necessary.

Our competitor, on the other hand, was once a manufacturer, but no longer is. Our understanding from their former customers is that they outsource every single part of their machines to various fabrication shops in their area...they don’t build anything. A couple of their former customers say they may still be doing final assembly, but we don’t know. It doesn’t take much effort to merely be a sales agency instead of a manufacturer, and it doesn’t cost much to operate.

2. They claim that long lead times (more than 2-3 weeks) means that we don’t have enough confidence in our products to invest in inventory. Of course, they don’t have to invest in ANY manufacturing inventory. Their suppliers, who actually BUILD their machines, carry their own inventory! On the contrary, we manage our inventory the same as all modern manufacturers do, depending on "just-in-time" deliveries from our component suppliers, and stocking in accordance with the expected lead times. A good example of this occurred this year (2008) when a gearbox supplier- who we have used since 1997- was unable to supply our gearboxes for 4 months. We looked at the alternative of using the same gearbox as our competitor, and even brought one in for testing. But it DID NOT meet our standards for strength and durability. Although we were getting desperately behind in production, we also knew that our customers would rather have the robust quality of a superior gearbox instead of one they could count on for trouble. The gearbox we chose in the end was a Brevini -widely recognized as one of the world’s leaders in gearbox manufacturing.

The truth of the matter is that our sometimes long lead times are a product of astronomical growth in sales, which in turn makes our forecasted needs to our suppliers too low for the rapidly increasing sales volume. The Concrete Titan 125E has become the standard of the industry because of its very robust design, high capacity, state-of-the-art hydraulics, and advanced features. As more and more users learn of the Titan, fewer and fewer are willing to settle for lightweight, poorly designed machines. For many years, our competitor had a virtual monopoly on the mixing trailer business. Consequently, they gave little thought to constantly improving their machines for the benefit of their customers, as we do. It appears to us that they are simply unable to accept the idea that now,  customers have a choice, and given that choice, are no longer choosing their lightweight, 30 year-old design. Instead they are choosing the Concrete Titan in huge numbers. It must be very hard for them to accept that new reality- which is probably why they devote so much time and energy slandering us instead of trying to sell you on their own inferior product.

Last year, our competitor was quoting six week delivery; now they claim to always have a few machines in stock. And that may very well be true. When your sales plummet, you are usually stuck with unsold inventory, and that appears to be the case with them.

3. Our competitor warns their readers not to be fooled by "low prices" or "some overstated feature". That’s probably pretty good advice. The Concrete Titan 125E is considerably more expensive than our competitors, so they are, in fact, correct in telling you not to be fooled by their lower prices. Look for yourself at our comparison page, and then decide if we have "overstated features". We do have many, many features that they don’t. We don’t offer these features just for the heck of it- we do it because it adds value to our machines, and significantly benefits our customers . We also ask that you not be fooled by a company who simply REFUSES to make their machine the best possible- to offer the most for their customer’s money.

4. Long lead times will cost some lost opportunities for profits for our customers- there is no doubt about that. However, with the great strength of the Titan, its higher efficiency and lower operating and maintenance costs, and its expected 15-20 year life, it doesn’t take long to overcome a few weeks wait. Over the course of your machine’s life, the Titan will be a far more profitable investment than the cheaper machine. Kind of like getting your new Yugo today, or waiting for a month for your new Cadillac.

5. Our competitors claim that they are "the professionals". Professional at WHAT? Clearly they aren’t "professional" manufacturers- they no longer manufacture their own machines. Are they "professional" at operating trailered concrete businesses? As we understand it, some of their employees apparently did work at trailered concrete operations many years ago- they were never owners- but that certainly doesn’t make them "professionals" in an industry they don’t even work in!

So what are they "professional" at doing? They are "professional" salesmen and fast-buck artists, in our opinion. They are failing to compete at virtually every level. They have lost their biggest rental-house customer, who now has the same lightweight, cheap machine built at various shops around the country. They have lost at least two of their largest customers in the Western United States, who have contacted us and are changing their fleets to the Titan. And now at least one of our competitors is trying to promote a "franchise" scheme, where they will take 9% of every dollar their customers take in.

What do the customers get? A promise of- you guessed it- "professional" training on running your business. Imagine that! People who have never owned a trailered concrete business are going to "train" people who run them every day! For almost a tenth of their customer’s revenue ( yes, that's "REVENUE", not profits. You could be loosing your shirt and STILL  have to pay them!), the customer can participate in their currently non-existent "national advertising program". And as a bonus, their customer’s get to have these "professionals" tell them what hours they will open, and what hours they will be closed; what they can carry in stock and what they can’t; and most importantly, that they MUST use only the inferior equipment they resell.

 My own opinion is that the franchise scheme is an absurd, insulting, money-grab that truly benefits no one except our competitor’s owner. We understand that they aren’t doing too hot at this scheme- apparently their potential customers aren’t as stupid as they thought.

It’s no wonder they will say anything they can to get rid of Pitts Engineering. And it’s no wonder that we continue to grow and increase our sales by triple digits every year.

6. We are, in fact, "professionals" at what we do. And we actually DO what we claim to be professional at doing. I have been in the construction machinery business for over 35 years, and still am. My company actually builds our equipment, and we apply all of the experience gained in a lifetime’s work to assuring you that you will NEVER be able to buy a better Concrete Mixing Trailer from anyone. We never stop exploring ways to improve on the Titan, and since we do our own manufacturing, innovations that add value to our customer’s experience with our machines are incorporated into production immediately. When you use subcontractors to do your work for you, that’s no easy task.

We invite all of our customers to call us, and we will be happy to give you names of  customers- even some who get aggravated over our long lead times. We’ll also give you the names of our customers who were once THEIR customers, but have chosen to wait a little longer, AND pay a little more for the Concrete Titan. I am sure they will be happy to tell you why.

And while you are at it, if you are in our neck-of-the-woods, please stop by and get a plant tour and lunch on me. I will be delighted to show you our work-in-process and let you see step-by-step how we manufacture the Concrete Titan 125E, and the Titan TBL240 Belt Loader. We have nothing to hide- including the fact that- unlike our competitors- we actually BUILD our machines!

I apologize for feeling compelled to resort to their style of marketing by writing this letter and publishing it to our website, but I felt compelled to correct their patently false and misleading statements.

Call or come by anytime you want to talk about our equipment. I won’t talk to you about any stupid franchise scheme, but I will be happy to talk all day about the machines we build, and why we are determined that it will always represent the best value for your money.

Sincerely,

Monty Pitts

Monty Pitts

President

Pitts Engineering Works, LLC

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