Customers Expect Products to Work

The other day I had a discussion with a distributor regarding what his customers expect when they purchase and use a tool.

Here’s a thumbnail sketch of what he said they want:

• An exceptional price
• A functional tool
• An extensive warranty

I understood the first two, but an extensive warranty? What exactly does that mean?

Here’s some speculation:
• The manufacturer stands behind the product
• The product is good enough to warrant
• When it breaks, they’ll replace it

When it breaks, they’ll replace it.

Anything made by man is destined to break. But, if a customer expects it to break, something’s wrong.

The distributor went on to explain that his current tool supplier will replace any tool, regardless of how old with a new one, no questions asked. He continued that he suggests his customers keep two of each tool on their truck, one to use, the other as a backup.

When one goes bad, the tool rep doesn’t even want to see it, he “orders a replacement and throws the bad tool away”. Whatever happened to manufacturers that want to inspect “bad” tools as part of the constant improvement process? I’ll tell you. It’s not worth the freight because the factory is more than 7,000 miles away.

It appears their business strategy is: “build an adequate product, price it low and load up the customers with them”.

It took Detroit decades to realize that top quality is an investment worth making. Superior quality earns terrific market share. Adequate products get you from 65% market share to 22%.

Customers will pay a little more for quality products and services. Not a lot, but they will pay more. Oh yeah, don’t think you’re kidding them when you reduce the amount of cereal or ice cream in the container; that’s a shell game

US manufacturers face numerous challenges in order to stay ahead of overseas producers. Quality, regardless if you are providing a product or a service should not be surrendered in order to stay competitive. Find new processes and designs; seek out new suppliers with better technology; do not compromise on quality.

Leap frog your competitors with quality. It’s a time tested true investment in your business.