The Patent Frees Your Suppliers to Increase Their Profits by Reducing Your Costs
Customized and other specification-defined goods and services differ from pre-stocked or inventoried items in that they must be specifically manufactured or provided to meet particular buyer requirements. Consequently, specification-defined goods and services cannot simply be purchased off the shelf at fixed prices appearing on standard price lists. Instead, their prices are established when the exact goods or services are actually specified. Only then can the manufacturer or service provider assess the precise quality and production specifications required to perform the project.

While store-front and e-catalogue systems manage procurement of inventoried items that are produced in advance and warehoused until purchased, this business method patent covers specification-defined goods and services that are ordered to precise and unique specifications and produced at point of purchase.

The key to obtaining low prices through The Gindlesperger Method is in the permitting of qualified suppliers to bid high, low, or not at all without having to consider buyer pricing expectations, without fear of setting either high or low precedent for future bid prices and without worrying about being denied future bid opportunities for which the supplier is qualified.

Freed from these concerns, bidders offer pricing based on their own level of open production capacity at the time each job is bid, knowing that if they bid low this week when they are hungry for work, they are not bound by the buyer’s demand for the same low price next week when they are busy with other orders. It is the supplier’s performance record, not its bidding record that determines whether it remains eligible for the next bid opportunity. The Gindlesperger Method allows pre-qualified suppliers with excess idle capacity to provide an extraordinary low price without risk of establishing future buyer price expectation.

Suppliers of specification-defined goods and services willingly offer low prices to fill idle production capacity because the ongoing fixed costs associated with unsold capacity causes enormous profitability erosion. This strategy is called "contribution pricing”, because when printers bid this work below normal rates, any income above out-of-pocket costs offset their fixed overhead and thereby “contribute” - 100% - to their bottom line.