Why Service Trumps Quality And Price

February 9, 2012

In the precision machining business, nobody sets up their machines based on the quality or price of your barstock. They set up their machines based on your delivery (service).

We don't set them up because of your price.

Ability to provide your product on time and to specification is the true determinant in the real world of execution. Thats why there is a gap between the dream world of  business plans (what we think we can get) and the real world of monthly operating statements (what we got).

The delta (difference) between the two is a failure of some supplier to service (provide what needed as needed as planned.)

  • Quality: Either the quality of the product meets requirements, or else you will get claim/return and won’t get the order (again).
  • Price: You will meet the market price for whatever comparables exist for the same requirements- or else the lowest priced comparable product will be selected.
  • Service is the only differentiator in my experience;

 Therefore it is only your ability to serve the customer with immediate delivery/ provision as needed that is a differentiator.

PS.:  Consumers consider service to be part of the landed cost, and don’t want to pay extra for it. In the industrial sector, service  is a given.

PPS.:  Everything else is Marketing B.S.

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