Mar 7, 2006
The Broadhurst Report
The Numbers Game
By Guy Broadhurst
No matter what people are buying they are always looking for the lowest price--the lowest number. The pressure is greatest with big ticket items because the margins are perceived to be fatter. Automobiles are a prime example, especially because they always seem to be on sale! I think the last time someone actually paid retail price for an automobile was sometime in the last century, back in the days before instant rebates.
People will seek out the biggest engine, largest sunroof, softest leather, and fanciest mix of technological gizmos, all for the lowest possible price. They pit one dealer against another, and sometimes even come out with a good deal. Or at least they think they do.
Yet in the quest for the lowest number most consumers forget that quality is an important part of the deal. Since any given make and model is essentially the same no matter where it is bought, price is an important differentiator. The quality of the ownership experience is what a dealer brings to the table--and what differentiates one from another. The technical knowledge and skill of a dealer's service department, the way customers are treated, and how any problems are resolved have a direct impact on the experience of owning a vehicle. And while dealers make a profit when selling a car, service is where they develop relationships with customers and ultimately build their business. It's no different with high-speed production printers and software.
Beyond the Numbers
Still the quest for the lowest price extends to corporations as well and often drives the discussion about which print engine and software to buy. Corporate bean counters--with little understanding of print operations-- frequently fail to realize that much more is riding on purchases of complex technologies than is reflected in the numbers on the sales agreement. I know the financial folks are just doing their job, but the weight of their opinion should be just be part of the purchase decision. Sometimes the equipment vendor's business philosophy offers value far beyond the core functions its machines and software provide. For example,
- There is the value of the technology over time, especially if it can be readily upgraded to provide greater performance or is scaleable to grow with expanding needs.
- Reliability and predictability are important because they enable a machine to deliver consistent, often mission-critical, documents during peak periods.
- Versatility is essential because it enables one investment to be used in many different ways, reducing overall costs.
- The software that drives the machines is especially important because it can reduce the labor required to keep print engines fully productive, can streamline work flows and ensure accuracy from host to post. It also helps maximize the reliability, predictability and versatility of the print engines to deliver optimal and profitable results.
- Providing service levels that match your company's operational requirements and having an award-winning service organization demonstrate a clear commitment to your success.
Subtle Factors
These values are, for the most part, measurable or visible within an operation. Other factors are more subtle and are part of the total value a print engine vendor delivers. Every print engine and software provider can service what they sell, but are the typical response times in line with your company's service level agreements to its customers? Has the company to whose print engines you are entrusting your business acquired ISO 9000 or 14000 certification? Have they adopted lean business practices such as Six Sigma to ensure they are efficient and goal directed, with your interests in mind? Does the supplier continually reinvest in R&D to develop new solutions and technologies that you can take advantage of in the future? Has their strategy been proven? Do they look at the market in different ways than their competitors and bring out products that provide cost-effective alternatives for workflow management and color printing.? Such values may add to the cost of equipment and service while adding a more stable print infrastructure you can rely on as your business or print operation grows or adapts to changing market demands.
When buying a car, it's easy to go for the lowest price or the best lease deal and drive away satisfied. But cars are basically a kind of commodity. They aren't charged with keeping your customers satisfied, your operation working efficiently and revenue flowing into your business. While basic business sense dictates that you work to get a good price on whatever equipment or software you need, you should not shortchange the future of your business or operation by basing your choice solely on price. Look to the quality and value behind the price, the lease program and the click charges to understand all that you are paying for and how it can help drive your business forward.