Seven or eight years ago U.S. Manufacturers were told that there would be no real reason for them to do much in the way of 250-500 gallon vertical bulk tank production. Reasons given included plentiful stocks of used equipment and the inability of suppliers to economically justify small volume cryogenic liquid deliveries. Yet, During the past few years, sales of microbulk vessels in the 1000 to 2000 liter range have been strong. These are the same sized vessels just packaged differently.
This might be ironic except for the fact that “Nature abhors a vacuum.” And- just because a major producer of liquid oxygen, nitrogen and argon has a business model that focuses their efforts on deliveries of 1500 gallons or more does not preclude the need of users. Posed with the question of how to fill the gap from liquid cylinders to 1500 gallon bulk tanks one producer eloquently responded “That’s what distributors are for.” And in the U.S. this has proven largely true.
Interestingly enough, though, I was informed that some of the same companies who have 1500+ models in the U.S. are actively involved in establishing a microbulk presence in Europe and Asia. Part of the answer given for this is a cultural aversion in other countries to soliciting a competitor’s clients for nearly identical services. For example- If Manufacturer X is buying 20-30 liquid nitrogen cylinder exchanges per month then it might be considered unseemly for a competitive supplier to come in and offer to provide the same service at a lower rate. But- A competitive supplier who offers the same liquid in a different package is offering an alternative that changes the rules of the game.
I’m told it would still be “unseemly” to go out directly soliciting microbulk business as an alternative, but there are means of finessing the approach so that the client calls the supplier to initiate discussion. Economic presentations at trade shows, article publication, web posting and general advertisement all become fair game along with referrals from other happy clients. Overall, this is sort of a retail walk-in approach to engaging clients vs. a more active direct approach in the U.S.
This might be ironic except for the fact that “Nature abhors a vacuum.” And- just because a major producer of liquid oxygen, nitrogen and argon has a business model that focuses their efforts on deliveries of 1500 gallons or more does not preclude the need of users. Posed with the question of how to fill the gap from liquid cylinders to 1500 gallon bulk tanks one producer eloquently responded “That’s what distributors are for.” And in the U.S. this has proven largely true.
Interestingly enough, though, I was informed that some of the same companies who have 1500+ models in the U.S. are actively involved in establishing a microbulk presence in Europe and Asia. Part of the answer given for this is a cultural aversion in other countries to soliciting a competitor’s clients for nearly identical services. For example- If Manufacturer X is buying 20-30 liquid nitrogen cylinder exchanges per month then it might be considered unseemly for a competitive supplier to come in and offer to provide the same service at a lower rate. But- A competitive supplier who offers the same liquid in a different package is offering an alternative that changes the rules of the game.
I’m told it would still be “unseemly” to go out directly soliciting microbulk business as an alternative, but there are means of finessing the approach so that the client calls the supplier to initiate discussion. Economic presentations at trade shows, article publication, web posting and general advertisement all become fair game along with referrals from other happy clients. Overall, this is sort of a retail walk-in approach to engaging clients vs. a more active direct approach in the U.S.
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