By Tony Hoffmann
•
14 Jan, 2020
Recently I had posted a picture and a comment about a product offering on Facebook. Once posted FB then gives you the option to boost the post in order to advertise. So when we go on to Facebook and scroll through our feed to see whats happening in the lives of our friends we will have an advertisement that is stuck in that feed. Personally, I haven't found it very effective, and whether that is due to Facebook not being a very effective medium for product sales, or whether water treatment is not a good product for that medium, is unclear, suffice it to say, I find it ineffective.
Well, in this recent post, I had a person from another water company comment on the post and say, "Don't let these guys fool you..." I responded back to his comments and we went back and forth when he finally said, "No need to get so bent out of shape...just a simple water fight." I've pondered on that comment wondering why a person would say negative things when they know nothing about the company nor any of the people who work for the company? They choose to post something negative on another companies feed versus posting something positive about themselves on their own feed?
I then reflected on the state of the new world we live in where we are bombarded with news commentary versus simply news, and where the news is fake much of the time versus true and where we now have a term for it called "fake news." Strange times indeed. It is an end justifies the means world where the end isn't necessarily good, positive, or worthwhile. What seems to be lacking in politics, relationships, and business is character, ethics, and integrity.
In simple terms business integrity means doing what you say you will do, offering a product that is what it is an will do what you say it will do, standing behind the guarantee or warranty provided, and offering it at a price that is fair within the market. For an example, I will use equipment from the water treatment industry which we work within. If I am selling an inexpensive water softener that was manufactured in China, and it has cheap materials and components, subpar resin, possible plastics that leech VOC's, I shouldn't sell it for the highest possible price, and advertise it as a top of the line system, and I should fully disclose the type of system it is because there is a market for less expensive cheap items. But if I portray it as a Mercedes, and sell it for the price of a Mercedes, but it is actually a Hongqi, then were not having integrity.
Some would say that the free market is a "buyer beware" system. That if we can sell it for "whatever the market bears" then that is equitable and fair. After all "we're in business to make money" not give out humanitarian aid. Well, a free market system is really meant for an honest and integral people not for bandits, scam artists, and fast talkers. Yes, they are the ones who sometimes seem to profit at times, but usually in the long term their misdeeds eventually come to light and they either go out of business or out of town to a new market. Yet in the meantime many unsuspecting and innocent folk were the beneficiaries of their slick lifestyle. These idioms are not integral explanations of the free market. If we choose to sell and compete in the market place we should present our product and ideas based on truth and reality so the consumer has all the facts and can make an informed decision based on the same.
In the water treatment industry, there are many brands of equipment, many different sales styles, full service dealers and sales only dealers, and a wide price range. For instance, you can purchase an Autotrol system from a dealer, from a big box store, from a plumber, online, to a part time guy selling everything from vacuums to humidifiers, to curb lettering. They're all selling the same control valve yet you may pay anywhere from $800 to $7,000 depending on the marketing package. Meaning they may put in a better resin, put a nice attractive cover on it, include the installation, throw in a lifetime warranty, have a colorful brochure with an eye catching website, and high pressured sales people, and in each case you will most likely get soft water. But was the price worth the product you received?
The burning question is - was all that worth a price difference of $6,200? Many would say perception is the key and whatever the market will bare is the rule, but is it really? If you are presented with a great story, awesome pictures, and an emotional appeal, does that automatically make the actual product more valuable? For example, a company called Pentair makes a system called a Fleck 5600. A second tier manufacturer may take that NSF (National Sanitation Foundation)certified valve, put it on an NSF certified structural tank, put in an NSF certified Purolite resin, and then a local dealer sells it as a 48K grain quality water softener. Another dealer can also acquire a knock off 5600 Chinese made control valve, put it on a Chinese made tank, and add Chinese resin to it, it'll look just like the U.S. company Pentair's system, but the quality and durability is not nearly the same, but they have catchy brochures and wiley sales people and you'll buy it for the same price thinking you made a great decision.
At Total Water LLC , for instance, we sell a control valve manufactured by Clack Corporation. They manufacture a very well thought out durable valve. It has high efficiencies, high flow rates, multiple levels of programing, and simply works. Yet because this valve is so good, many second tier manufacturers use the Clack valve in producing their complete system. Companies like Water Right, Hellenbrand, Avian, Nugen, Performance, Watts, Charger and many others. They all make systems with Clack's control valve. They all use NSF fiberglass tanks, and NSF American made resins. And if you purchased any one of those systems you would have an excellent water softener that would be durable and efficient. You would have made a good buy, so long as the price you paid was fair for the extra services rendered by doing business with the local dealer.
Some ideas to think about are; does the local dealer stand behind the product? Do they offer service and maintenance on their systems? Do they offer a fair and honest warranty with win win provisions? Do they make the system more attractive with blow molded jackets and matching covers or is it a simple raw rustic look. Do they offer WiFi, a service contract, timely service, knowledgeable trained personnel, and work guarantees? All of these items have a value to them and is worth paying more for. But how much more?
In my years of business and years in water treatment I have found many people look at water treatment as a get rich opportunity. Because it is one of those rare appliances which actually pays for itself over time and has the potential for high mark ups due to the potential savings home owners can realize over many years. If a homeowner owned a softener for say 20 years, over that time, they could save money on soap products as they would be decreasing the amount they use by 50% - 75%, they would save money on worn clothing from washing and drying them frequently, their water fixtures would last much longer therefor reducing repair and replacement costs, they would decrease their hot water heating costs by preventing scale build up, their shower doors and dishes would last longer as they'd keep them longer as they would look nicer longer, they could reduce their lotions and potions costs as their skin would be cleaner and healthier. All of this has a cost to it and over 20 years a homeowner could literally save thousands and thousands of dollars.
Well, if we look at how much you are saving over a selected period of time and then determine that our product has a certain value in saving a consumer money why shouldn't we benefit financially in that savings. So if you saved $10,000 in 20 years, why should we not get $5000 of that? After all your saving $5,000 as well which you wouldn't have saved had we not explained it and sold you the system? Could be fair depending on how you looked at. But is that the price you want to pay for a product?
We prefer to think that it is a product much like any other. It has a function, it will wear out, there is value to it, and you as a consumer should benefit from it and feel good about it. So we take the cost of the system, ad a fair multiplier to it for a markup to pay for unseen costs in acquiring and paying for that good, calculate our fixed overhead expenses and variable costs, labor, taxes, and a reasonable profit, and come up with a price. We then sell it at that price. If we operate a wise business and can't make it at that price we recalculate as necessary and reprice. In the end we have a good honest product at a reasonable fair price. Interestingly enough, it makes our price less in many cases and significantly less in some.
At Total Water LLC, we strive to provide a good quality system, at a reasonable fair price, with good customer support and experience, and an honest warranty that protects both our customers and ourselves. We believe in full disclosure, explaining our products and how they work and why on a factual basis, and if we are incorrect or made a mistake we own up to it. We want people who become our customers to trust us and feel as if we have their best interest in mind. We also believe in offering a viable service and product and in being paid for that as well. We strive to be experts in our field and to be a resource for that knowledge to you.
We want you to do business with a company that fits your needs and expectations. If that is not us but another, we are happy for you and hope your relationship with them will be beneficial to both you and them and that it will be a win win. We simply advocate doing honest business, in being real, and respecting other companies in their pursuit of honest business. If you would like us to see how we can help you please call us at (801)796-0940