One Way to Approach “Differentiation

By Weld2 Partner, Frank White

We’ve all been told “Differentiate or Die”, so how are we different, and what are we different from? Check out the ludicrous case study…we promise to sew it all together if you invest about 4 short moments with us.

Opportunistically purchased tires will not meet F1 standards.

Case Study – F1 Race Cars:

F1 Race cars are complicated, super-performing vehicles where everything       in and on the car must contribute to an aggressive overall outcome. Each component must do its part; play its role in that outcome.

 But let's say the guy in charge of tires needed some, so he fires up the truck, runs up to the local Sears, and picks up the tires that are on sale that day. Hey, a tire is a tire right?

There is virtually no chance that the local Sears Auto has the right tire for the rims, and vehicle, much less even if the guys could mount ‘em on the car, that the car will perform as desired.

How will the Sears Tires contribute to the anticipated performance? No disrespect to friends at Sears and the tires they offer, but in this ridiculous case study we make that simple point. Just cuz you could do this, why would you ever want too?

In most situations our potential clients are doing just that with their technology system purchases, and that creates an opportunity for us and our industry suppliers to exploit.

Any casual viewer of the current consumer electronic and technology sector will immediately observe that for the most part people buy components, and use them in systems. And all the vast sums squandered, marketing CE and technology amplifies this.

Go to any “super-store” or on-line arena, and see what and how the retail industry sells them. Our observation is that the retail channel sells a minimum based performance spec for an aggressive price.

In and of itself, most any single component purchased has little or no value, until is installed into a system. For example, an AVR needs an audio source, some speakers, and for a true surround type experience will need a video display, and some type of subscription internet & television service. Then we could deepen the quality with lighting, shading, room acoustic treatments, and an automation ease of use element, layered through-out, to organize the whole mess.

Distancing yourself from the crowd is generally very desirable. Many have stated, for decades, that in today’s technology contracting arena contractors must “differentiate”.

For most of us, now could be the time to perfect the art of differentiation.

Solving age-old questions like:

“Why is your Samsung TV more expensive then Costco or Wal-Mart?”

Or:

"Why does your Luxul or Ruckus network cost 2 grand, when I can get a (questionable) hot Netgear on line or at “Big Box” retail for less then 130 bucks?"

We all know this objection is coming, so how have you scripted your response?

Today’s Differentiation Tip:

Move away from selling components and focus on selling systems 

When you get braced with the inevitable question, and you engage on a component by component design & price discussion, you can never climb out that hole. Amazon, Best Buy, Target, & Wal-Mart win every time. Look, they buy by the train load, and we can’t.

You could use some derivative of:

“We know and actually respect what Costco can deliver, but for your vision and your system, Ms. Sanchez, we have specified and vetted the specific Samsung model in the proposal, along with all the other elements and components in your system and network.

We know that the brand is the same but we are unsure of the chip sets, power supply, latency challenges, and control timing disciplines that Samsung used. They stripped down that model to be able to offer Costco customers the same size TV at an eye-catching price”.

Suggesting that you could buy one off the shelf and then put it through your vetting process might work. However, that would incur labor & engineering charges negating any cost benefit harvested in the first place, and could result in a lesser overall system.

You could also add that the typical Samsung, Sharp, and Vizio models offered are relatively short lived on those shelves at this type of outlet, thus rendering the supply as unpredictable or unstable. You certainly wouldn't want to count on them for any kind of custom cabinetry. That is one of the reasons we as an industry can’t really count on them for our offerings.

So?

How do you differentiate your company?

We are WELD2, a premier marketing organization for technology contractors, offering a remarkable relationship engine that can work wonders to increase profitable sales for your company. Starting at just $70 per month; it doesn't go up much from there.

For more of these mildly irritating perspectives visit www.weld2.com

Contact Barry Scovel - [email protected]

Contact Frank White - [email protected]