Friday Free-Day Giveaway: Sony Headphones

I agree that it’s tough for a small business to compete on price, but we shouldn’t ignore the 30% that use service as a priority. We offer way better customer service to our clients than a big corporation would.

In a strained economy, price is always the top concern, but small business has the unique ability to give the customer that personal touch. That service will pay dividends long into the future. Customers tend to be very loyal when treated properly and with respect.

Shop at Walmart and get zero service but the prices are great. Want service, step up and buy from Nordstrom. Pay more but you can find someone to talk to and will understand you needs and service the heck out of you to win your business.
The total cost is not always the sticker price!!!!!!

As someone working for a small business and involved in technology purchases, I have found that, in this economic climate, the cost of service in a purchase doesn’t always translate upstairs. In the end, everything comes down to a line item on a spreadsheet so for them its always price. For me, I have to strike a balance between price and service but something always gives.

I disagree with most of the statement.

Take the common sense approach to your own situation, make sure it can do what you need before you price it.
For us, 0% was price (we didn’t care it’s an investment), 20% for service/support of the product, 70% for what the tools can do, and 10% was for the bells and whistles – what extras can it do, reports, and what we can replace because of it.

the part I can agree with is the last part, it is the bells and whistles that help set you apart. That is true with any product or service out there.

We are in constant competition with huge integrators including Lockheed and BAE. We look at every angle, including price, when it comes to strategies to defeat them.

I definitely agree. It is virtually impossible for small business to compete with the big boys when it come to price. However, small business can beat them in service. Small business can give the personal touch and cater more to the individual needs of their customers. The 40% is a great way to capture a good share of the market but adding the 30% who seek service boosts your market share and profit potential over the top.

We use service as a differentiator between us and our cheaper competition. Big boxes aren’t able to listen or respond as well as we are. Gaining and keeping customers are what keep us in business. We offer value-added services that customers can’t get elsewhere. Furthermore, we have found customers don’t mind paying for these services! We have in the past not charged for these added services, but found that customers didn’t appreciate what they were getting and how it made us different from the lowest bid… charging brings their attention to what we provide and they are grateful!

On a municipal budget, you can’t purchase something you cannot afford or whose purchase would leave little or know money in your capital budget. However, both quality of the product and service enter into our choices. For servers we go with well-known names and trusted warranties, because we need the systems running 24/7. For software, we need a combination of the right product, good support, and then price.

In the town in which I live and work, we chose a vendor for a large capital project based on price and support, given product capability was similar with all vendors we reviewed.