The Power of Price

Most Tool and Equipment surveys that I have seen always ask the question of the technician or shop owner, “How important is price when you consider a purchase?” Answers usually include other comparison points, like quality, availability, warranty, convenience, selection, service, made in USA, and payment options. And the price factor usually comes after quality, availability and service. It is almost always the number 3 or 4 reason chosen by a professional. Number one and two generally flip between quality and availability, but in more recent years, the importance of availability is trending downward, and service is trending upward. Made in USA seems to have been left by the roadside somewhere. And, oddly enough, “relationship, integrity, connection with my supplier” is never one of the options.

So for some reason I was thinking about price today and wondering how important price really is when you consider a tool purchase for personal or shop use. I know mobile distributors stop by your shop on a regular basis to tell you and sell you the latest and greatest tools. And their leadership believes that service and quality is what drives your purchases first, then availability and warranty second. I know you have first and second-call jobbers for parts, and their leadership believes that quality and availability drives your purchases from them. And some of you may rely on a few dealerships, and their leadership believes that OEM brand and quality drives your purchase. Most of the time, the reason you buy from one source or another is the connection you have made with your supplier. At some point, he or she has proven they can help you do your job better, faster, easier, but not always by using a cheaper tool than you could buy from someone else.

So then I got to thinking about our newest tool and equipment distributor, the impersonal internet. And, yes, I know, the internet is not always impersonal. Sometimes you’re using websites that are extensions of tool suppliers you’ve used for years. But tell the truth, after you get a price from your main guy, don’t you sometimes find yourself surfing the web, looking for the best “deal”? The thought of how immediately we get information from the internet led me back to price, and why people buy. I believe that more and more, too many of us are relying on the net (no pun intended) impact to our wallet when we buy new tools and equipment. To me, this is a very short-term perspective, because there are so many other factors to consider when purchasing tools and equipment for professional use. In addition to the age-old factors of price, quality, service and availability, you should keep in mind the other factors that many manufacturers provide today, but that many internet providers are omitting. These are things like product training, product upgrades, warranty options, ease of return, credit availability, cataloging, and a long list of other services that we tend to take for granted, until they are no longer available. When you buy off the internet, many times, once you’ve entered your credit card number and received the product, your “relationship” is over. You buy it, you break it, you outta luck.

You see, I used to sell tools and equipment on quality first, the right-tool-for-the-right-job second, and price rarely. So the whole idea of looking for something cheap to get the job done goes against my professional “grain”.

Yet the power of the internet, combined with our general desire for inexpensive products, has provided us with an increasing number of choices when it comes to buying tools and equipment. As we all look to find something less expensive, it seems more and more that instead we are finding something “cheap”. And by cheap I mean inexpensive and frequently of inferior quality. It may look good, but who can say how well it will work or how long it will last? In addition to questionable quality, there may be a question of safety.

Many of these tools are manufactured overseas and are imported by both US and International companies. Some are good and some are not. Some will last a “lifetime” and some will last for one job, then be tossed aside because it breaks or is stripped or is unusable to some degree. And then I ask, what price did you pay for something that it is worth so little to you, that you would only use it once then throw it away? If you stake your livelihood on the tools you use, don’t you want to buy the best and keep them for a lifetime of use? It’s an investment in your future.

So back to the power of price and ultimately the power of the internet. I’m not saying that you can’t find bargains or great products on the internet. We all know you can find both. But, as our distribution models change, I would encourage you to know your suppliers – whoever they are, understand what it is you’re paying for, and keep quality at the top of your “must-have” list when buying tools and equipment.

After all, at the end of the day, what are you selling?

Here's one readers response to my commentary:

Dear Ms. Skove,

Your point of view on the power of price left out an important factor, namely actual supplier service (or knowledge). I live in a rural area and have offered a higher level of technical service on more makes of vehicle than perhaps any shop within 50 miles. When I contemplate updating my equipment or software, I always ask my traditional wagon jobbers about their offerings. In many cases, all they can do is show me a video or a picture of their equipment in use. This information I can get off a web site. What I really need is advice about the appropriateness of their product for my shop. This they can rarely offer, as I am usually the first on their route to inquire (and acquire). Second choice is a reasonable "road test". Leave the tool with me for a week or two so I can try it in real world conditions. If it's good, I'll buy it. If not, I won't. This is rarely an option as they rarely stock the more advanced equipment.

OTC=OTC. Bosch=Bosch. Only the price and service differ when the tool is the same. My wagon jobbers and parts stores will rarely have the lowest prices. They also rarely stock what I need as I've been wrenching for about 35 years, and already have the basics. If they offer either the benefit of experience from other shops (not just the company propaganda), or the chance to try before I buy, I will always give the helpful salesman first shot at the sale (without regard for price differential). REALLY! I always ask the tool men when they first enter my shop, "What's new and exciting that I can't live without?" They rarely have an answer ready, even though they know I always ask the same question. But occasionally one will have a "winner". And I always reward him with the sale. If a salesman brings to my attention a must-have product, he is truly a salesman, and deserves the sale. But if I have to do all the research and the jobber still has to order my selection, he is merely an order taker, and should have to compete with other order takers (i.e.. The Internet).

I buy all my parts and supplies (except dealer parts not available locally) in town to support the local economy. But when the same scan tool is hundreds of dollars cheaper on line, and the local boys offer no added value, why not buy on line?

As for import tools being of questionable quality, I recently replaced a Ford Crown Victoria steering coupler with a Ford supplied part made in Lichtenstein, and an Astro Van blower resistor with a Chevy supplied part made in Slovenia! Chicago Cutlery is now made in China. Even American companies are no longer American, and Bosch never was. In general, I find quality control is left up to the end user on most products (not just automotive) these days, and promises to "fix that problem with the next software release" are rarely kept.

Sincerely,
Jake Pressel, ASE CMAT, L1, X1, owner
Seventh Street Garage
Calumet, Michigan (Find our village on a map and you'll see what I mean by rural.)