Things Your Grandpa Used to Say

"...There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper and the people who consider price only are this man's lawful prey." - John Ruskin "Philosopher"

There are few things more frustrating to the businessman than seeing his industry “race to zero” in the never ending search by uninformed consumers for a lower price. Note, I didn't say a better price, because lower isn't always better. That sounds like an odd concept, even to someone who believes that quality is always at least as important as price in any purchase. We are conditioned by the marketing around us that the lowest price is the best price and the best price is the best deal.

Our parents and grandparents grew up with and lived by the truth, “You get what you pay for”. That meant that every business transaction was based on mutual benefit, and value was traded for value. They built the strongest nation in history.

Somehow, in our enlightened age, we think we can turn that on its head and improve ourselves by taking from others, without giving equal value. I don't think this is a conscious effort to defraud anyone. I think it is caused by uninformed consumers who see little or no differentiation among products that look similar and are marketed similarly. We have all purchased something for our home or business wondering how a company could stay in business selling so cheaply. Of course, it usually doesn't take long to find out, as the stuff we buy rarely meets expectations, and often needs to be replaced long before we think it ought.

Anyone who has been in the fence industry for ten years knows that there can be enormous differences in quality and durability between two products that look identical. The trouble is that we have done a poor job of making the differences obvious. We haven't “trained” the consumer.

Consumers have been conditioned by the big box stores and Madison Avenue to believe that they can have what we have for a fraction of the cost. In response, we too often have agreed and lowered our prices, which meant we had to lower our standards and accept inferior quality components. After all, it was what the customer wanted, and the customer is always right, right?

There are companies that have refused to bend in their demands for top quality materials. Those companies are committed to providing the best product and service to their customers, even if it means they have to spend extra time educating their customers. These are the market builders.

Is the lowest priced alternative always the best deal for your customer? Then should it be the deciding factor when you purchase materials?