Price & Value Imports v’s local

price value import vs local

When comparing our products to some import barwork we discovered “our rates were uncompetitive” according to some shoppers!  Apparently, our prices were well above those other bullbars from offshore. And the import product was available right now as a competitor had stock. Our capacity is pushed to the limit at the moment, with waiting times up to 14 weeks from order, yet it was tempting but completely unfair to our existing clients to reduce our prices for this client for the same (great) things pre-booked customers are prepared to wait for.

We stick to our principles, and we miss out on jobs. We don’t even know what the “winning” prices are.  It’s an age-long dilemma – what prices should we charge? How do they compare with our competitors? Shall we drop ours prices to below theirs?

I’m sure that you, like us, don’t buy anything of value by considering the cost of all the parts. You convince yourself you need “it”, then you look at the price, the quality, and the difference between one product over another. Ultimately, you make a decision that is often based on a price, but it’s not usually the bottom price, because we all know “you get what you pay for”. And the one you bought has something special about it. It costs more, but it’s worth more.

Let’s look at consulting services.

A mate of mine told me he paid a large sum of money to a shrink several years ago. The rate back then was $185/hour, just to listen to him rant and cry his way through his depression. There was no price quoted. It was an undefined journey, and the only way was to pay. After several weeks and many hours, he was “fixed”. It cost him a lot of money, but he was saved and so was his marriage.

Imagine if he had shopped around for rates. A mate might say “There’s a bloke who charges $90/hr. Not sure what he’s like though”. Imagine he goes and sees that guy, he’s useless, and his marriage does fall apart…

The point is when you buy professional services YOU ARE STILL BUYING A PRODUCT. The product will either be cheap, or good, perhaps both. It might be delivered quickly, or slowly. But the outcome – the product or the service – is what you’ve ended up with.

Let’s play with numbers

Import product – RR $2000 fitted. The design is good, unsure what materials are used, a fairly open design bar that offers more room for an animal to get its body into. These bars are usually made in Asia somewhere, so its uncertain what rate the staff are being paid, let alone the OHS and other work conditions they are under.

Our product – RR$2900 fitted. Designed and fabricated right here in the west for our Western Australian conditions, minimising the gaps in the barwork to restrict animal penetration. Materials sourced with advice from local suppliers to ensure its right for the job. We are paying our staff well, follow OHS procedures and pay our taxes.

So, we have charged $900 more for a locally made product, employing local people and keeping the Western Australian economy going.

We are truly grateful to our clients. They see the value in what we do and together we add value up the chain.

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