Questions

[andy2]

Re: Questions

I don’t think anyone is going to give you an answer Andy but I agree it’s a very important question.

My biggest concern is the proposed cost of ‘X’ at £400 it is not cheap and there is going to have to be some very strong selling features to persuade a prospective customer to buy at this price. This especially applies if the machine is based upon a modified production model that is readily recognizable in the shops and there is a substancial price difference. This seems to be implied in the spec where it is noted that the case design is the manufacturers.

I don’t wish to appear negative, as i am not but this does concern me.

Andy 🙂

[kwatt]

Re: Questions

Sorry, missed this. Away, not well.. 😕

There isn’t too much that we could do cosmetically based on teh fact that we have little to go on in terms of volume. Had we been in a position to order 5000+, different story, but we’re not. Yet.

But then that didn’t stop the Philco/Bendix, Candy/Hoover, Zanussi/Electrolux or a slew of others from doing what we’re doing.

The big difference is in what they refer to as the selling proposition, the package that you guys can offer with delivery, installation, pure speed of replacement, customer dealing with you (LOCALLY) for service, five year spares, affordable repairs once the warranty drops off and all the other little bits and bobs makes this totally unique to us. This package is totally unavailable from any other channel that I know of.

The machine itself was specified to meet certain criteria, they were met. Whether the same machine with a differerent name on it is available at a different price elsewhere is pretty much irrelevant if you ask me as the customer cannot get the same support either pre or post sale on any other brand.

But that’s not to say that we are ignoring the question. The answer is that, yes, we have seen it in limited retailers in the UK now sadly and there’s not a lot we can do about that. The only good thing is that it’s not so easy to find.

Once we have some volume, the whole ball game changes. 😉

K.

[andy2]

Re: Questions

Thanks for that degree of candidness Ken without actually letting the cat out of the bag.

But that’s not to say that we are ignoring the question. The answer is that, yes, we have seen it in limited retailers in the UK now sadly and there’s not a lot we can do about that. The only good thing is that it’s not so easy to find.

The question here is that do we

(a) sell this appliance without being ‘up front’ that it can be sourced elsewhere (cheaper?) and risking a customer seeing the alternative machine and being upset.

(b) Be honest about it and rely on the strength of the benefits offered to make the sale.

Personally i would only be willing to make a sale under option (b) because it is the right thing to do (I would’nt like to be decieved), and its not worth risking losing a valued customer.

Having said that it might limit the amount of potential sales initially which has the knock on effect of making bigger volume orders harder to attain.

Andy 🙂

[kwatt]

Re: Questions

I guess when it comes down to it it’s your call on how you handle the customer and, we also have to remember that not all customers are the same.

My take on it is that, whilst it may look the same as another machine, it isn’t the same due to many factors, most of which I pointed out. But it could also be argued that almost every machine in any given price bracket is almost feature set identical and mechanically very similar.

What the customer won’t get anywhere else is the support and backup and ease of ownership irrespective of the physical attributes of the appliance. I think that it’s fair to say that those put this in a league of it’s own that nobody can touch.

You also have to remember that should the customer buy it cheaper under another brand they may save a few quid I grant you, you may lose the sale or you may even make the sale with a LOT less margin for yourself, but beyond that point it’s out of your hands and you’ve lost the customer anyway.

K.

[andy2]

Re: Questions

I realise that this may be difficult to answer Ken but approx what sort of retail price would an order of 5000 machines make viable using the 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} markup figure?

With regard to the other matter I suppose we shall have to wait until all is revealed and see what degree of difference in price is involved between ‘x’ and the standard model.

Andy

[kwatt]

Approx 1.625 million UKP up front to buy 5000 of them.

But when you break that down, whilst it includes a margin it does not include any warranty whatsoever, printed literature, transportation and a host of other little gems.

When you actually start to dig into all this you start to understand how close to the bone some of the retailers work.

K.

[admin]

Re: Questions

Lets just clear up a couple of points.

We specified a long list of options we wanted on our appliance. Because of “no record” we were not able to have all our options. Ok, we compromised, to get the ball rolling. We can gain more bargaining power as sales reach volumes, and we have the ideas to input once we can. Don’t ask what, they’re secret 😉

However we are powerless to stop the manufacturer using our specs to improve their own brand. After all it is common sense.

This package of appliance can not be bought anywhere else. You will not get the 5 year free parts with anyone else, you won’t get a fully trained network of agents all of whom will have had product training, with instant technical back up, spares availability and customer care that will come as part of the package. Nowhere else can the customer receive the suport we can offer. Nowhere else will you get £50.00 to do an in guarantee call, £50.00 to install the appliance where the customer buys an “expert installation”. This is about “total” service and peace of mind, how you guys market that is up to you. If you need help, ask.
That is why this appliance is circa £400.00. The customer buys into the best network of support money can buy. They buy into a local guy who cares for his local customer, try putting a price on that in your local shed.

Finally can I say that delivery with us will be 14 days quicker than where we have found the Manufacturer offering a similar spec appliance elsewhere. Yes, within 17 days is quoted.

Kevin

A thought to the inquisitive…..

So how do we stop the manufacturer borrowing our ideas? Easy we buy the old Rover plant, get Government subsidies along with Euro funding to retrain and re employ all those redundant workers and we produce our own. There’s not much kwatt and I have not disscussed with regards to this project, anyone got 10,000,000 to loan kwatt and myself?

[andy2]

Re: Questions

Kevin

I don’t think you need to convince us on the benefits of this package and it was not my intention to put you guys on the defensive, far from it! As I said in my first post re: project X, i personally think that the whole concept is superb and I congratulate you guys on actually pulling it off.

You guys already know the price difference between x and the ‘shop version’ and so are in a much better position to judge whether the difference is enough to be a problem. ie. are the package benefits worth the difference.

I hope fervently that they are and that the customer will percieve it to be so, as I would hate to see this venture fall flat on its face at the first hurdle. There is far too much at stake for that to happen and i don’t just mean that with regard to any financial commitments that might have been made.

This is probably the greatest and only opportunity to change the face of white goods retailing for the better – for both ourselves and the consumers out there who are getting screwed from all angles. For this reason it is important to get it right!

I am sorry if i have opened a can of worms but this really needed discussing.

Andy 🙂

[kwatt]

Re: Questions

There’s no offence taken at all Andy, the questions are valid enough and there’s no call to apologise for asking questions, unlike many we’re only too happy to answer what we can. If we can’t tell you we’re honest enough to tell you that.

All I’d ask is that you consider what a 5 year parts warranty is worth, £50 a call, the sensible margin etc.

The point Kevin was making and myself earlier is that, whilst we went with a wishlist, we couldn’t check every box as we just don’t have the clout to make those kind of demands yet. But we are working on it. So, for now, we have to content ourselves with what I consider to be the best possible package for you and your customer currently available from anywhere.

I have often said this past few weeks, is the actual appliance worth about £400, probably not. Is the package worth that money, definitely yes, it is.

But give us a little support and a bit of time and we’ll deliver something to you that nobody and I do mean nobody, will be able to compete with. As you can probably tell I’m dying to tell people what the plan is but I simply can’t do that for now

What I can tell you is that the first machine is reffered to as “Generation 1” internally and I have a few things in my head for a few generations beyond that, but first we have to establish the name and volumes. Let’s just say for now that it’s the usual forward thinking that you’d probably expect from us by now.

But like so many brands before us, to start with, we have to live with what we can do now with an eye fixed firmly on the future. This is only the start.

K.

[admin]

Re: Questions

No probs Andy, but there is not a shop version, its an internet version, and now I have to shut up.
Thats why the delivery is crap.

As you say, I was probs defensive, sorry.

But after all the effort and to be so close, its nailbiting stuff for us. Fortunately we don’t bite nails but drink instead 😉

However, when I wake at 3 am dreaming/thinking of this project (and I know kwatt does as well) its difficult at times to keep the objectivity and focus in tune.

Kevin

[andy2]

Re: Questions

Ok gents – thanks for the replies I will now shut up on the subject and wait to see how it all pans out…….

Andy 🙂

[Martin]

Re: Questions

£399 is a better price tag to put on it, brings it into the ‘under £400 price bracket and is what punters look for after all 😉

Will glossy sales brochures be available or the equivalent downloadable pdf.file so we can print off loads to hand out to customers? High pressure selling in the customers home is not to be recommended once their machine has been written-off. Therefore they may need a certain time to consider such a purchase and a chance to compare prices perhaps. So a good load of information about the product and emphasis on the after sales service/guarantee and all that good stuff wouldn’t be a bad idea?

[kwatt]

All in hand Martin. 😉

K.

[Martin]

Re: Questions

Will Project X ever be sold direct to customers from the website (i.e ProjectX Internet sales/service/extended warranty) ??

[Dave_Conway]

Re: Questions

Yes Martin, it will. But wherever the machine goes the agent in that area will recieve the benefits of the service etc and the install should the customer choose that 😀

Dave.

[Author]

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