Supply and Demand

NewMariner

Reef Tank Aficionado
Roger,

Im just curious why do you have to get on waiting lists to get streams? Are they hand made? Does Germany only ship a few to the US? Im just curious why the wait?
 
All of the above. They are handmade. Their are 30 some employees at Tunze and all products are hand assembled in house. The Electronic Streams are particularly difficult to make, I built some myself on the last visit and while admittedly I am not proficient it took 2 hours to build one from start to finish. The demand for Tunze in the US has tripled and reached an all time high and continues to grow. The Streams, Osmolator and algae magnets are largely responsible for this growth. The few outsourced components sometimes fall in short supply because the sales volume we have seen was never anticipated- Tunze has been available in the US since the early eighties and such volume was completely unexpected, other small companies produce the plugs, cables, transformers and since most of the world is on a 230V 50Hz standard the US is an oddball that requires a special production component. Outside of this worldwide sales have also grown to double 3 years ago. The company in general is struggling to grow. If you have ever owned a business you will learn growth is not always a good thing- it requires a tremendous outlay of capitol and sometimes the increased overhead reduces the profit margin. We are at a point where the company grows and we project in 3 months to meeet current demand but in 3 months demand has increased even further and we remain behind. In the past month larger steps were taken including more injection molding machines and more employees. In my 4 years with the company I have seen us hit these stumbling blocks and we always overcome with enough time. Tunze was founded in 1963 and we will continue to grow and invent new products.
 
Thanks for the info Roger......I completely understand now.......

So how big is Tunze USA? I assume its headquartered there in Austin? Is the facility there just a warehouse or is there some manufacturing that goes on there too?

Sorry for all the questions, Im just highly curious about how Tunze makes such a great product but cant meet the demand.............
 
Tunze USA is just me working out of an addition to me house. Sorry it is so quaint but with the margins their is no other way for it to work. Tunze is a small company, still owned and operated by the Tunze family, a bigger company would never have the level of ingenuity and flexibility to do what we do. We are big enough to own the machines we need and have the resource we need to make an idea into a reality but still small enough to have new ideas and respond quickly with an innovation.
 
So how did you become apart of the Tunze Family Roger? You say its run out of your house, you must be a very trusted employee.........

If you feel Im delving two deep into your personal affairs please tell me...I completely understand.......I just find the make-up of the company fascinating...........
 
Well, my story is rather simple. At 22 I graduated from UT with a psychology degree. Originally I wanted to be a counselour- well frankly I got too many of my own problems and really think most people deserve a good smack when they come up with their petty stuff to whine about. Add to that their is no agreement on treating people and the people who have serious mental problems are basically untreatable. So, I started a LFS. Well, talk about a bad investment. Not too long after we got rolling the economy tanked. I realized from the beginning to survive we had to be unique and as a lifelong hobbyist I was tired with the inferior junk on store shelves. We started selling Tunze from Burleson, after a year he went out of the aquarium business and I called Tunze to get parts. It was really a bizarre twist of fate as I called Germany on a lark on a Saturday at 2pm CST. Making it Saturday at 9pm in Penzberg. Axel Tunze answered the phone and said he was coming to the US next week and wanted to meet me. He was at his office finallizing preparations for the year 1999 Backer show. At the time every dealer who carried the product ordered seperately. Axel could always count on me to do as he asked and I sold more product than anybody even though I was only a LFS that dabbled in internet and the big mail order outfits sold half the product. Further, I knew how to fix the stuff so when a problem came up whether it was from one of my customer or not I could be called on to fix it. Every year I visited and became friends with the family. Axel says it is unique to my personality as he considers most Americans proficient BS salesman and I was someone who appeared very straightforward, honest, introspective and sincere. In general wholesalers are not highly thought of in Europe as they usually copy the products and make their own, they also are seen as people who make money for doing absolutely nothing, they neither made the sale or made the product. My case is unique in that Germany is so far away that it is honestly cheaper for them to give a new pump than to repair and return a pump to the customer. In my position I agreed to a very slim margin that is not a living wage but with my LFS income and some odd jobs I do is enough. This gives them somebody here to take care of any problems and handle tech support as a proficient English speaker. Also, somebody who has some understanding of the market but I have to emphasize only some as I don't think like a typical American and have no problem paying for quality. I am not part of the disposable American consumer culture and have learned buying an expensive high quality article will save you alot of money down the road. So, I will never be a master of mass marketing or tagging along on Nemo pop culture but I can fix stuff and understand the product. I also get a great deal of enjoyment out of being able to attend annual brainstorming sessions and invent new products or help solve the problems of an existing product or product that is in development. I also like attending the large trade shows in Europe and helping develop the catalogue icons and photographs- we literally do everything in house, every manual, catalogue and brochure will have Axel Tunzes own personal hand in its production. I have a tremendous amount of respect for this because big American companies snub their nose at you and couldn't care less- just buy it and shut up is what they want. As a high school kid I invented new engine designs for automobiles, waste water filtration systems, I would write t the companies and all I ever got back were form letters if anything. The same as a LFS owner, I would suggest filter design A and the manufacturer would come back with- well, we sell more cartridges this way and our marketing studies show this and that. Well, marketing gurus can burn in hell, I want what an engineer has designed not what a focus group designed. Anyway, time for lunch.
 
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