The microphone lowers and in a dramatic
baritone the emcee intones, “In the red corners
stands Price. A fleet-footed fighter, he sidesteps
costly testing and warrantees to deliver rapid combinations
of low-cost products. Volume is the name of his game.
In the blue corner is Value. A heavy fisted, hulking
force, Value marches right through undercutting opponents
with a tireless dedication to quality and service.” The
bell sounds and you look at your betting slip. Who
have you picked to win?
This analogy of prizefight between price and value
isn’t as crazy as it might seem. Every day businesses
bet their future on one model or the other, and an
epic battle is shaping up to take place in our very
own industry.
Scientifically engineered materials and adhesives
have elevated glass films to a prominent place in the
building materials sector. No longer limited to automotive
restyling, window films have become a respected defense
against solar rays, violent storms, and even terror
attacks.
But whenever an industry booms, new competition emerges.
In the window film market, this competition has come
in the form of low-cost products from suppliers that
do not invest in the betterment of the industry. Specifically,
these companies are able to offer low pricing in part
because they neither join industry organizations nor
support their customers’ knowledge base by underwriting
training or seminars.
Competition is good for business. From the manufacturer
right down to the merchant, it strengthens every link
on the supply chain. But competition also causes confusion,
particularly at the dealer level. Every day dealers
are forced to decide if they should continue to install
the products they have known for years or if they would
be better served selling today’s cheaper films.
Some argue that there are no winners in a price battle.
It becomes a war of attrition: The last man standing
wins. But this is characterization is overdramatic
when it comes to the window film market. There is enough
business – automotive, residential, commercial,
government – to support a wide range of business
models. There are many customers who buy based exclusively
on price; there are many customers who demand only
premium products.
Ultimately only you can decide if low cost or high
value products are best for your business. But if you
feel caught in the crossfire between price and value,
the following guidelines may prove useful in helping
you decide what kind of business you run.
Start by conducting an honest evaluation of your company
and the customers it serves. Ask yourself the following
questions. Is your window film shop one of many businesses
you own, or is it your financial lifeblood? Are your
customers one-time buyers, or do you view each client
as a stepping-stone to future sales? Do you aim to
increase profits as quickly as possible, or is your
goal to build a viable business for the long-term?
As you have likely concluded, a “yes” answer
to the first part of each question suggests your company
may benefit from selling low-cost products. Conversely,
if you responded favorably to the second part of each
question, chances are you are of the “value” mindset.
Choices are as plentiful as opportunities in today’s
window film market. But before you can establish yourself
as a true champion, you first must figure out what
kind of fighter you are.
Joe Chernov is a marketing/communications
consultant and author of “77 ½ PR Tips.” He
specializes in the technology and manufacturing industries.
Chernov provides consulting services to Madico Inc.
among other companies. |
