Clearview National July 2016 - Issue 176 | Page 58
GLASS&SEALEDUNITS
The real eternal triangle:
quality, service and price
There has long been a viewpoint that, in business, it’s
not possible to achieve the holy grail of quality, service
and price. Commentators have argued that aiming
for two of the three works, but a business that seeks
to deliver all three is bound to fail. This understanding
determines how a business markets its products. Luxury
brands rarely mention price. Discount supermarkets
always do, but they neglect to mention that you’ll
be allowed nano-seconds to reload your trolley.
»»THERE ARE COUNTER-ARGUMENTS,
of course, and businesses who believe it can
be done. Amazon, for example, manages to
satisfy its customers with swift delivery, quality
products and good prices. Even so, it has more
than enough detractors who happily pick holes
in other aspects of the company’s management
and strategy. And its business model isn’t
exactly responsive – try phoning someone
to discuss having that widget you’ve found
online, packed differently or produced in just
a slightly different shade of blue.
Amazon’s success has, however, contributed
to altered buyer behaviour and expectations.
These days, few people retain the fear of
online commerce. Familiarity with this new
method of sourcing goods may have started
with purchasing a book or DVD online, but
it has spread like wildfire. With commerce
enabled by smart technology, and shipping
and transportation costs low, customers
can shop around. They are no longer tied
to buying local and no longer suspicious of
imported goods. In this brave new world,
we would be foolish to ignore price as an
influencing factor in a purchase decision.
There will always be those for whom it is the
most important factor, but we believe that
for a sustainable business and for long-term
consumer satisfaction, price should have much
less weight.
A business needs to know where it stands
on the price-quality-service triangle and
then, critically, to ensure that their customers
understand their position. Sending confusing
messages to the market risks alienating all
sectors of it. It’s hard to trust organisations
58 » JUL 2016 » CL EARVI E W- UK . C O M
‘A price that is very low
can act to turn away
customers, signalling, as it
does, poor quality and the
potential for poor service’
that claim an ability to do everything when, in
reality, they rarely can. Price sets expectations.
A price that is very low can act to turn away
customers, signalling, as it does, poor quality
and the potential for poor service. Throwing
an old chestnut into the mix, the attitude that
‘you get what you pay for’ remains as strong
as ever. Besides, competition based solely on
offering the lowest price is never healthy. It’s
a vicious spiral where quality must necessarily
decline and where business survival depends
upon cutting corners and possibly on the
use of substandard working practices and
materials.
Today’s business environment is populated
by savvy buyers, who are looking for more
than just a rock-bottom price. They are
looking for quality and service, but also for
confidence and a relationship with their
supplier. Customers want to feel understood,
that their needs will be met and that there is
time to talk. If they want that widget in a
slightly different shade of blue and packaged
in an altered format it should, at the very least,
be something that is up for discussion.
Suppliers need to demonstrate that they
can react to their customers’ concerns, address
them, deliver the products they need, when
they need them, and not just once, but over
the long term. This approach builds loyalty,
rapport and mutually beneficial trading
relationships. Importantly, it’s a foundation for
growth and improvement, instead of decline.
But, back to price. It never goes away, does
it? It still matters because everyone’s money
is tight and every business has a bottom line.
But the way to manage price is not by slashing
it. It’s by making the operation more efficient,
by investing, by eliminating waste and getting
things right first time. With costs under
control, prices can be fair and sustainable. Our
triangle is balanced and all three components
– quality, service and price – are aligned to
the promotion of a viable, responsible and
growing business.
Tina Moorhouse is MD of Oakland Glass
Ltd, suppliers of specialist glass and sealed
units to the construction industry.
www.oaklandglass.co.uk