PRICE WARS?
Over the last several years the recreational boating market
has experienced a huge growth in the popularity of floating foam water
pads. The demand for these products has spawned the inevitable
insurgence of price wars centered around lower quality products. Marketing
101 nearly always demonstrates that in any market segment there will be low-end
retailers who base their sales strategy entirely on price. Conversely,
there will be a corresponding segment of buyers who base their purchase
decisions on the least expensive option available. It’s why our nation’s
largest grocery store chain sells clothing, tires, and sells a pair of water
skis for $49.99. Yes, they are water skis and there will be the buyers
that buy the cheapest pair of skis. So you ask, how do we compete?
The answer is simple, don’t sell the $49.99 low quality water skis; sell the
better quality skis. The majority of boaters are typically buyers who
value quality over price and would rather have better quality skis.
Bottom line if you sell on price only, there will always be someone willingly
to sell cheaper than you.
The same is true for floating foam water pads/mats.
There are several low-cost options available that claim to be ‘just as good or
better’ than the leading national brands. However, just like the box
store water ski example above there is a difference, and as retailers of better
quality merchandise it’s our job to differentiate our products. As
everyone knows, selling solely on price exposes that retailer to a vicious cycle
of price wars that end up in producing margins that can’t support the sales
effort. Further, the manufacturer of the price degraded product can’t
support dealer needs or warranty. Don’t just take our word for it, think
about most any market segment you are involved in and who has survived over the
long haul. I think you’ll find it is the quality products that make
it. Whether that be boats, clothing, water toys, etc.
So, why sell Chillraft’s? The simple answer is
actually three answers; quality, performance, and support.
-Better quality materials. From our
anchor/tether system to our UV protection, we never compromise the quality that
goes into a Chillraft.
-Performance. If you’ve ever seen a
Chillraft in the water next to a competitive product, you’ll see the difference
immediately. A more stable platform with less narrow axis fold/bend, a
smoother and more comfortable surface, and superior resistance to punctures and
tears.
-Service. We design and control every
aspect of the manufacturing process. The Chillraft is 99%+ ‘Made in the
U.S.A.’ and we have meticulously engineered every part and raw material that
used in its production. This connection to the manufacturing process
assures that we ship only products we have 100% faith in, and that we can
respond quickly to dealer needs.
The bottom line is really the top line, you’ll never buy a
higher quality product for the same price as a lower quality product. If
that were true, there would be no incentive to produce quality products.
Selling a quality product assures that you’ll never get caught up in the
never-ending cycle of lower price/lower margin. You all know the story,
once some retailers start down the discount road, it doesn’t end until they
drive themselves, and others, out of the market.
Buyers are already starting to see that is not just a piece
of foam, there are differences between the brands, be glad that you sell the
best water foam floating mat on the market, CHILLraft. It means less
warranty issues and more satisfied customers.
W
e’ve put a lot of effort into producing materials that help
you support your case for a higher price for a better quality product.
Please contact us to personally discuss the sales support tools and aids we can
provide to help you tell your story to quality minded buyers.
