Is Lowest Price The Best Value?

Recently I received a fair number of calls, emails, and texts from CI dealers inquiring about a certain outdoor audio solution sold by a well-known big box store. Most dealers were angry because their customers were enticed by the "loss leader" price and were going to purchase it in place of the higher priced, higher quality, better warrantied, and professionally installed outdoor audio solution the dealers had included on their proposals. I certainly understand my dealers' frustrations but all I can say is "welcome to the club." This same scenario ironically plays out every day for account managers at small, local distributors as their dealers are similarly lured by the wholesale equivalent of the "big box" store - a large, corporate, app based, distribution entity located far outside the territory, undercutting wholesale prices sometimes by double-digit percentages, offering free freight, redeemable points towards future purchases, and an entry into a raffle to win an all expenses paid trip to Tahiti where you can party like Van Halen during the 1979 World Tour. Now I am a red-blooded American, who believes in the free market, who believes that competition is good, and who believes that we are and should be free to make choices, but I also believe the choice to purchase at the lowest price possible is not the best choice for you and your company because it really doesn’t provide much value. If you don't agree, I'd like to ask you a series of rhetorical questions that might change your mind.

• Is the lowest price (and the bonus rewards program) really adding value to your company beyond a few more points of margin?
• Is the personalized, relational, and exceptional service that comes with the slightly higher purchase price through a small and local wholesaler, contributing more to you and your company's long term success or not?
• Is it of more value knowing that you are not just a Username and Password, but rather known, trusted, and supported by someone you can call at anytime for help, guidance, and design assistance?
• Unless you really enjoy supporting distant corporate chiefs and/or shareholders,?is it also of more value knowing that your slightly higher wholesale cost provides sales commissions to someone you know and who is for all intents and purposes an integral part of your sales team, working very hard for your success, and who on occasion even joins you at your customer's house with tons of heavy demo gear to help you close a sale and make you money??

I hope you realize that the lowest price is really not offering you much value. Therefore, I would like to invite you to turn away from the "Amazonization" of your business and instead pay a little more at a small, local distributor. Experience the true value that comes with it, encounter the relationship and partnership that comes through it, and enjoy the more profitable long term future that comes from it. So the next time, the corporate "big box store" makes you an offer you think you can't refuse - refuse it and get in touch with your local distributor. It's a far better deal.