Retail Observer

RETAILOBSERVER.COM MARCH 2019 64 S E R V I C E D E P A R T M E N T Don Pierson, Certified Service Center (CSC) www.certifiedservicecenter.org RO T hanks to several readers for their comments on my recent article, What is the Right Price? They contributed valuable points on the intricacies of pricing and choosing product offerings for retail and service-based companies. The commenters mentioned the need for product knowledge, for maintaining an unbiased view of the marketplace, and for constant research on our customers' real needs. Several commenters pointed out that excellent product knowledge can sometimes work against us, when it comes to establishing a pricing policy and marketing/product philosophy. Do you have an unbiased view of your customers' real needs? Are those needs properly reflected in your company's products, policies, and services? As a first step, I believe it's good to review our personal philosophies and see if they're in line with our customers' real needs. If not, we'll need to modify our thinking. For example, if you're deeply frugal in your day-to-day life, it could become an obstacle when it comes to setting a proper target market and defining the specific types of services or products you'll be offering. Are you aware of any other personal philosophies that might raise barriers to growing your business? For myself, I've always equated quality with the highest-priced options, and let's face it, that can be a real mistake, if it pushes me toward the high-end products before I've properly investigated and understood my market. I've known many business owners and encountered many operating philosophies. The common thread is usually a desire for close relationships with customers. The successful owners I've met have had very different personalities and operating philosophies, but they all knew their customers and were very active in keeping current with their likes and dislikes, and using that information to drive their business. When smart manufacturers plan for new products or procedures, they're careful to ask the dealers and servicers for their opinions before they release the new offerings. If not, they could end up with an "Edsel" that the manufacturer and designers thought was revolutionary, but that the customers and dealers feel is just too strange-looking and not favorably priced for the market. Many industry analysts described the Edsel as the wrong product at the wrong time, in the wrong market. Perhaps a few visits and phone calls would have helped Ford to design and launch a more successful product. When we started the Certified Service Center program (CSC), many questioned the Customer Survey requirement, saying that they talked to their customers all the time and knew what they wanted. And, of course, that's as it should be, but the customer survey allows the data to be reviewed by others, to ensure that the information collected is interpreted fairly by various parties, including the customers, before any final decisions are made. A prime example is the common feeling that we're living in a "break and replace" economy. Many say it's just too costly and time-consuming to repair products today. However, there are several real customer needs that aren't well-served by this way of thinking, such as sentiment, compatibility, and biggest of all for many (including me), the desire to avoid having to learn to use a new product, especially today's often confusing high-tech product offerings. So we really do need to ask what our customers are feeling about the "break and replace" philosophy, and we need to find out if our service offerings are reflecting those needs. What is the right product and price offering? Your customers know – so listen to them, really understand them, accept their advice, and do your best to give them what they want. We should try to keep our personal feelings from clouding our good business judgment and affecting our decisions, even if we seem to be right most of the time. We all do it, because it's human nature, but we should always try our best to make a final product decision with an open mind, after soliciting and listening to the pros and cons – or we could be looking at our own Edsels. WHAT'S THE RIGHT PRODUCT? THE CUSTOMER KNOWS!

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