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As the machine is being sold with a five year parts guarantee plus the option of a 5 year labour guarantee, I assume the machines parts have been made accordingly. i.e. carbons, bearings, belt, motor have been designed to last more than five years. If this isn’t the case a loss will be made by ISE on paying us to replace such parts under the guarantee period. If this is the case a loss will be made by the sellers as we have only made profit on the sale of the machine.
The point i’m trying to make is that the machine is being sold so that the seller looks after the product, we need to make money by the machine failing at least a couple of times under the 5 year guarantee, if this dosen’t happen i would have been better selling a product with 1 year guarantee and getting my (loyal) customers to come back to me therafter.
Is this a fair point or am i blinkered to my old ways?
Re: ISE reliability
Sorry, we have not produced an appliance to break down to suit an individual repair business expectaions. I wish 😆
However we have aimed at reliability, as at the end of the day it’s what the consumer wants, imo.
There’s a trade off between customer satisfaction and reliability, and I for one don’t want to go there with our product. I’ll leave that equation for a £160.00 washer to settle.
As for breaking down a couple of times, some will, but not all. Thats the numbers game we calculated against reliability.
Kevin
Re: ISE reliability
I agree that the customer does want reliability but I thought this project was also about us the engineers, if the ‘numbers game’ is weighed greater towards the customer, then ISE as a company will profit as well. So the engineers who are the rise or fall of ISE will lose on repairs. Considering repairs are our bread and butter the £80 profit on the sale of the new machine will soon lose it’s appeal.
I am seriously interested in the concept of ISE but am looking for that re-assurance that i probably won’t obtain.How about if we sell the extended warranty and it isn’t used, returning the extended warranty money back to us the seller. This would help counteract the lack of repairs over the 5 years.
cheers.
Re: ISE reliability
Hi Tim,
We’ve been over this already I’m sure at some stage. 😉
Okay, let me kill the notion that all appliances break in the first five years, they catagorically, totally and utterly do not all fail in that space of time. Fact.
Failure rate under twelve months of age is generally accepted as 5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} these days, more or less as an industry standard. Fact.
That means that for every 100 you sell in one year you’ll only see five interventions. Sell 100 year on year and that builds obviously and also the year 2 to 5 work builds alongside the new sales giving a nice little sustainable pot over time.
I’m not going to lie to anyone and, I have always said quite openly, that this is not a quick fix. ISE will not solve all your woes in one fell swoop inside a year or two as it quite simply won’t, but it will give you something tangible in time with a little work. It also means that you retain the customer until year 5 guaranteed, hopefully beyond that which allows a very nice position for you guys to be in as you capture the chargeable work and the ability to replace at end of life again.
As for giving the money back there’s a couple of points I’d fire right back at that…
1. It’s proven to be unsustainable as a model, look at Clydesdale and a host of other names that tried it in desperation to increase sales.
2. Look at Comet, they got a slating because of the terms of the cashback offer.
Neither appeal to me and neither are (IMO) marketable brand building routes to take. I’d far rather pump the money back into R&D to come up with new and bold products that are better built.
Of course we dont’ want the machine to break a lot, neither do you. Think about it…
If the machine was in the habit of acting like a bag of spanners you lot would crucify us as you were getting grief from your customers and, quite rightly so as far as I’m concerned.
Also, if it was breaking a lot, not only would you lose confidence so would the customer and that totally defeats the object of selling something a little better than the rest and would, in time, destroy all confidence in the brand. No point in that as it then becomes unsustainable and we all lose.
But in a lot of ways the old repairs vs sales argument makes me laugh at times when you see repairers selling Bosch for example as a better quality machine, especially the Spanish ones. And the Hotperloni, Hoover/Candy or plethora of other things which they kiss goodbye to any warranty work on and the manufacturer canvasses to snatch the insurance sale etc. etc.
I honestly think that that is entirely counter-productive to sustaining your business in the longer term even if you do make a quick buck today.
Trust me, there’s an awful lot of thought gone into this project and one h*ll of a lot of bitter experience.
K.
Re: ISE reliability
hi,tim. dont forget what some of your lovely customers will leave in their pockets from time to time 😯 the odd coin rattling about will get you a call out,also the bra wires,the dirty socks and those sexy little thongs 8) are great at blocking those hoses and pumps 😉 so sell the ise with confidence,the only time it breaks,its the customers fault 😆
Re: ISE reliability
deltra wrote:hi,tim. dont forget what some of your lovely customers will leave in their pockets from time to time 😯 the odd coin rattling about will get you a call out,also the bra wires,the dirty socks and those sexy little thongs 8) are great at blocking those hoses and pumps 😉 so sell the ise with confidence,the only time it breaks,its the customers fault 😆
1st call ISE will pay for, second, third etc, nice little cash calls 😉
Greg
Re: ISE reliability
lets be clear……
The customer gets 1 (one) intervention that we will pay the engineer for, only, if you write on your job sheet that the customer has been advised of future “own fault/foreign object” calls. The customer must sign it and we have to receive your job sheet, so we can see you are complying.
After that it’s down to how you handle the “customer care” side of your business. As an example we have had 1 intervention where a bath mat dissolved (we’ve all had that one 🙂 ), the engineer involved charged the customer a reasonable call out, rather than ISE.
cheers
Kevin
Re: ISE reliability
timdowning wrote:The point i’m trying to make is that the machine is being sold so that the seller looks after the product
Indeed he does Tim, but more than that, he is selling a machine that is a first class product built within specific requirements to enhance his reputation. Whatever would your customers think if you sold them an Indesit for example and it had to be scrapped as uneconomical to repair (as so many do) after just 18months? Or if Indesit is not your thing, perhaps you sell or recommend the more respected Bosch? They can go belly up and regarded as BER after less than 3 years, in fact they are getting worse these days!
But YOU recommended those machines or YOU probably sold those machines to your “loyal” customers. How loyal will they be after that I wonder?
The ISE machine is very different from those 2 examples in that you make a tidy profit on the sale, you get exclusive rights to fix it should it go wrong. You get well paid for under guarantee repairs. The replacement part costs are very low so the thought of it becoming BER even after 5 years and more is unlikely.
Therefore your business can rest easy in the financial security of knowing you’ve sold a good product, you’ve made good money from it AND you will have even more loyal customers than you think you have at present. They will know doubt recommend others to enquire about an ISE machine which (as you know) only YOU can sell them…. 🙂
ISE reliability is your success story, start flogging a few and see 😀
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