NEWS RELEASE March 2022
Maximize Cleanroom Garment Profits
Cleanroom garment profits can be maximized in a multi-step approach
- Identify the opportunity
- Total Available Market (TAM): This includes both reusables and disposables. It includes every industry and every country
- Serviceable Obtainable Market (SOM). Suppliers of disposable garments can serve geographically diverse markets whereas garment rental companies are limited to areas where they make a laundry investment
- Most Profitable Market (MPM).
This is a high EBIITA segment where the superiority of the product and service over alternatives allows high selling prices. This target can only be quantified by
- understanding the processes and goals of the purchaser
- Analyzing the market shares and offerings of competitors
- Predicting trends and future needs to keep product evolution in step with the trends.
- Lowest Total Cost of Ownership Validation (LTCOV)
Unless the purchaser is convinced that a product is superior, he will not be willing to pay the appropriate price
Mcilvaine has been providing market forecasts for cleanroom garments and laundering since long before Morris Chang was a visitor to Semcon West with the strange idea of building a fab in Taiwan.
The forecasts of the Most Profitable Market are only as good as the understanding of Lowest Total Cost of Ownership by the purchaser. In fact, the supplier will be most successful by being proactive and helping the purchasers determine the LTCO.
Cleanroom garment suppliers are mostly selling based on higher performance rather than price. They therefore have everything to gain by helping their clients make the LTCO decisions.
In this regard Mcilvaine is suggesting a decision loop involving purchasers, suppliers and the media. Details are shown at http://www.mcilvainecompany.com/sample/Decision_Loop/cleanroom_garment_iiow_decision.htm