In a recent online trade publication, I ran across the following article which I would like to delve into. It's from Pool & Spa News.
I would like to share and discuss an issue or issues which the industry I’m in has run across since the advent of the modern day web. Admittedly, I realize there are many businesses, business owner’s and operator’s who do not cozy up to the idea of a consumer buying a product online, then expecting someone in the local area to install it.
Much to my chagrin, I cannot believe this issue still exists within the marketplace today, in so much that there are companies in a local market area who absolutely refuse, to in any way work with or on a product purchased online. As with many industries, there are products sold within the industry which are commodity type products.
Let’s say Consumer A buys such a commodity item online and asks Company B to install it for them. Company B says “Dude, you’re one of those internet customers. I’m not installing that without charging you for the money I lost because I didn’t sell you the product.”
Are consumers being profiled as either a local customer or an internet customer, which may be further segmented into a DIY classification?
Not that there’s anything wrong with this type of classification of customers, because we most certainly do it, but it’s how a business handles those different types of classes that brings about friction in the marketplace.
Our company sells and builds in our industry on a local basis and also sells nationally through our website. We have a localized site for our local customers and then our nationalized site for our national customers. It’s not that the two never meet because they do, and we promote it as such.
We are not the only company in our industry who sells online, so we do have local customers call us and ask if we will install a product which they purchased online. Now, I understand, there are those around the country who, as a dealer, may tell the consumer to take a hike and good luck finding someone to install that. We on the other hand welcome this as an opportunity to broaden our customer base. What we sell to the consumer in a situation like this is our company’s history, integrity, quality of work and the fact that we guarantee our work. Not to say the product won’t fail, but we guarantee our work.
Then there’s the customer who buys one of these products online and then contacts the local professional for some “free” information on installation etc. Within our industry this rubs the wrong way with so many people. Why? I’m not certain but I think it’s in part to the fact that there has been a paradigm shift in doing business, and they “never got the memo”.
I think that one of the reasons why there’s been so much resistance is a lack of adaptiveness and education. Those who are able to improvise, adapt and overcome have been rather successful in blending both a “local approach” and an “internet approach” to doing and generating business.
As we’ve noticed, the two above approaches will in turn have online businesses creating networks of licensed professional’s who will do the installation these “professionals” refuse to do. Thus, these so called “professionals” will be even further behind economically. I wonder to what degree this might be the “squeaky wheel” syndrome by this type of dealer.
What’s the harm in offering out some free advice and guidance to those who ask or require it? Furthermore, what’s the harm in broadening the customer base by doing the installation, doing some leg work, etc., all in an effort to broaden/strengthen your local base? The companies which offer this free advice and affordable installation; both sell and market their service and their company’s value in the market place as an installer, who hopefully adds value by a higher, longer service level.
One industry publication even quoted one dealer as saying “I’ve found that if I work with people, eventually I become the first call on their list,” says Bob Nichols, owner of Precision Pool in Glendora, Calif. “Next time they have trouble, there I am! I think it’s good business to build relationships with people based on their needs rather than yours.” To this point I couldn’t agree more.
“One time I helped a guy and now I’ve got five of his neighbors [as accounts],” Nichols says. “If I had refused to help, I would have lost a lot of money. My suggestion is don’t walk away until you’ve taken a good, close look at the situation.” Absolutely Sound Advice, in my humble opinion.
So, after reading my ever so brief dissertation; what's your take on this ?
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Comments
I recently completed a pool. The client later found that the salt system was just too harsh for their liking. We kept the FC at .00nothing just barely keeping the water from going biologic. The ozone system was set to minimum. We were able to keep this narrow margin and have very clean water. The complaints persisted. The clients emotional responses were such that any logic on my part would be viewed as confrontation. I began to recognize the clients talking points as coming from an "ionize/oxidize" noble metal system salesperson. I was (am) "living in the past straddled to archaic technology". Poor me. Anyway, I now face the situation of installing a system that I feel is completely wrong for this client . I appreciate that these systems are viable under near laboratory conditions with alot of tweaking and oversight. This will not be the case with this client unless I do these functions myself and that will not be possible for the most part. This is a wonderful client and I want provide the best level of service I can. I have stated my reservations and have agreed to install the system. The client is fully aware of my reasoning but an online personage awash in the "most current information and technology" has trumped my 40 plus years experience and neandrathal mentality. I am willing to meet the clients request and professionally install the system. I am not looking for an "I told you so" moment and I hope the system works as advertised but I know the person at the opposite end of my clients computer screen will never be the boots on the ground that I am nor will he/she have to deal with the fallout.
As for the more mainstream items people purchase online such as pumps, filters, sweeps and so forth, I agree with the previous poster that sees this as an opportunity.
Never, Never, Never devalue your skill and knowledge. If a potential customer does, do you really have anything there in the first place? Might be time to move on. Most of us build our businesses by converting a "guy with a busted pool" into a loyal client by our skill and professionalism. So don't sacrifice the opportunity to convert the internet buyer to a client.
Peace
It would be a little difficult I think to be a warranty station for all brands and products depending on your company size and knowledge of all products which I don't think is feasable. To be honest if a customer bot the product from us and we installed it no question that we would repair based on warranty and usually do not charge client for labor to keep goodwill with the customer but should if I understand you correctly you are suggesting that if they purchased online the installing company should spend the time contacting that online company for the warranty issue using again unpaid manpower to do so. Lastly my experience as a warranty station for a major company has not been all that great as they limit labor reimbursements no matter the amount of travel time not to mention waiting weeks for replacement parts and approval that it is indeed warrantable. I've sent parts back in April that by Sept still are approved each year. I agree there has got to be some sort of balance here but as a company you have to be able to manage just how much you can afford to put out to keep and cultivate that customer.
Agreed, this can be a touchy subject but you said it in that there’s a warranty issue.
Warranty of product lies under the manufacturer’s realm and should be addressed as such.
If the product were sold and installed by “the local company/installer”, who and how would the warranty be handled? I don’t see how warranty would or should be handled any differently from when it’s installed after an online purchase.
If it’s a manufacturer’s defect/warranty, then the manufacturer should handle it, preferably with the installer because they will most likely be the one making the "repair".
If the installer is a warranty center then it shouldn’t be touchy at all.
If “the company” is not a warranty center, then a simple phone call to the manufacturer or distributor, explaining the issue will generally get the ball moving in an advantageous way for all parties concerned.
“I always tell the customer in writing we are not responsible for warranty of items purchased via the internet and that labor charges will incur should we have to replace parts they received for warranty issues.”
Very good process, but doesn’t this issue itself identify the need to make sure “the local company/installer” is a warranty center for most major brands?
But in the end, I think notifying the customer, up front of your position on product warranty is the best practice.
Sounds like you've developed a very sound business strategy for adapting to ever changing biz environment.
As far as the customer coming in with a product you wouldn't necesarilly advise they use, we have to ask ourselves if we are correct in our opinion. I know that is something we deal with fairly often. The business decision for us is to not cause any friction but to add lubricant to our relationship with that customer so that it becomes an easy working relationship. My hat's off to you for revised business model.
As it turns out, the restaurant owner and workers didn't say anything about it. I had an outside drink to go with my sandwich and I felt good about the place. This seems analogous to the pool owner who comes to us with a product in-hand and wants to buy something else from us (our parts and labor for installation). If we tell him that it is against our policy then we would drive away business just like the restaurant would have today.
But, customers purchasing online still bugs me for a different reason. I believe that a major value that I provide is my knowledge. If a customer comes to me with a product to install, they have already chosen the item to be installed. The last few times that this has happened, the customer purchased a product that would be more difficult to install and more of a hassle to use in the long run. Now the question becomes one of integrity. Do I tell the customer that a more suitable product was available (in which case I make them unhappy with their purchase) or do I keep my opinion to myself and just install it?