Tuesday, October 1, 2013

Price vs. Price-Value, How Local Business beats the Internet



 
 
 
 
 
 
 
 
 
 
 

There are many options for you to find the best price for pool and spa products. Like you, many of today’s savvy shoppers, much to the chagrin of small Mom & Pop shops, use the internet to get pricing for products. You may then get bids from local companies to compare what you feel is the fair price for what you found online, only to be sticker shocked by the 10%-40% price difference. But, are you getting a fair price-value comparison?

If price were the only consideration, then apples to apples numbers comparisons would be fair. Reasonable merchants would agree there is nothing inherently negative for you to find and get the best price while reaping the savings. And while ecommerce can and does deliver on cheaper prices, they do not do so on product service, after the sale, product or warranty support. An even bigger challenge for ecommerce is isolating possible compatibility issues associated with new equipment being installed with older equipment. They depend on you, the lay consumer to give them accurate product and firmware specific information.

 

This shifts the responsibility from the internet company to you. If things go awry and they do, you end up owning a piece of equipment you either can’t use or having to spend thousands more to upgrade your other equipment that otherwise may have been fine if the correct product was requested in the first place. The good news is price oriented purchase limitations and challenges are easily avoided.

 

As small local businesses vying for your support, we must take the time to explain what the true value and advantages of local companies are and what they deliver every day for customers just like you. Doing so will then empower you as the consumer to decide which makes better business and personal sense,  price only or price-value purchases.

 

Local companies can and do deliver exceptional service, value priced products and are typically experts at what they do. What then, if local companies provide quality, service and price-value products is the hook that internet companies have over local businesses that’s so appealing to the price oriented shopper?

To use an analogy, fast food is cheap because service is limited to a cashier, paper wrapped food and some seats. They use a low overhead, cheap labor, mass volume, no frills business model. Ecommerce is the equivalent of the fast food phenomenon. They have low overhead, use unskilled, cheap labor, and their investment is limited to some cubicles and a fancy website. While this is a great way to save on overhead cost and maximize profits, at the end of the day, their lack of frills can and does make the internet risky for purchasing high end pool and spa products. What the internet can’t provide is everything else pool and spa owners like yourself need; local support. How do local companies do it? Here is just a sample of what local businesses do to get you the service you deserve.

 

  • Hire and keep highly specialized, experienced, trained technicians

  • Purchase and maintain dependable, professional service vehicles

  • Hire internal support staff to answer calls, scheduling, billing and customer service.

  • Invest in a seasoned, dedicated Technical  Service Manager to coordinate field service

  • Invest in a professional sales manager to drive customer centric sales support initiatives

  • Invests in $10,000 to $50,000 in inventory supporting timely service and repairs.

  • Commits $5,000-$20,000 per year in new product training for all staff.

  • Invest in field service technology, tools and instruments to provide advanced equipment diagnostics.

  • Earn, maintain and pay for required training and licenses.

  • Pay local taxes, contribute to the local economy and support local causes.

  • Go to the job site and meet you in person to ensure the right product is selected.

  • Develops, maintains and nurtures relationships with distribution channels, manufacturing representation and other local resources to provide seamless support.

  • Join professional peer groups to maintain current on all trends and industry specific issues.

  • Can answer most any product question, resolve any product issue and support any product needs you may have.

  • Experts on which products have challenges, those products other customers are happy with   and are equipped and experienced in answering questions related to product reliability and   sustainability.

  • Since local companies sell, install and service their own products, they want only the most reliable, least problematic attached to their name and are not beholden to any manufacturer to push products they do not want to support.

  • Can offer extended, more comprehensive warranties that internet companies cannot for peace of mind.

  • Most importantly, you can see the person you are talking to and shake their hand when the job is complete. Personal is better!

 

When searching for a product, understanding the difference of price-value and price alone will help you make a better, more informed purchase. Ultimately, you are the boss of your backyard and make the choice best for you. Whether you choose the internet or a local company is not about the product, it’s really about the value you get for your next pool and spa equipment purchase. Fast food is good, not great. Only after you eat it, will you will really know how well you can digest the savings.



 

Carl Stiggins is the Sales and New Business Initiatives Manager for Dale’s Gas Appliance Repair, Inc. and has held many positions within the Pool, Spa and Outdoor Leisure industries.

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