Sunday, July 7, 2013

Product-People-Price

       I had a really interesting conversation with a customer this past week about why people buy a particular piece of turf equipment over the other choices. My feeling on why people buy comes down to 3 simple things Product, People and Price. While all three play a part in the decision process, what is the percentage breakdown is the interesting question. Sure this is a simplistic view of a complicated process, but I think it is the basis of what a purchase consists of. When you have the opportunity to buy, what makes you choose one piece of equipment over the other?
       Now I hate to share such a big turf industry secret, but they all cut grass or spray chemicals or pull plugs! Yes, some units are just better than everything else available, but the reality is basically all reel and rough units cut grass, aerators pull plugs and sprayers spray. And of course, I feel strongly about Toro products from my years of selling red iron. Obviously, some units have better features and just like all cars are not the same design, they all do the same thing.
       To me that is where the other two parts of the equation come into play. When I reference people, I am not just talking about your sales rep either. It is the support from the salesman, service department, parts department and training provided that are the difference maker. Again just as it all cuts grass....It all breaks at some point! I just want to be the rep from the company that can get you up and going faster than anyone else.
       And the final variable is price. Now the funny part about price to me is it is not the same as cost. If something is cheap up front, I can almost guarantee that over the life of the unit it will cost you more with down time and parts. I am talking about an apples to apples purchase, not any special pricing because of  multiple units or special deals.

       So the next time you have the chance to spend some capital dollars, I would ask you to think about what is the percentage break down in importance of             
Product-People-Price of your purchase.


WJC

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