In a competitive world market, it’s not always about the amount on the price tag anymore. People and companies are more interested in the overall and true cost of a product or service. Transactional costs are now considered just part of the total ownership cost. Do we pay freight, does the item arrive on time, and ease of installation are other transactional costs to be considered.
Focusing less on what the price for an item is, we need to demonstrate value to the customer based on these other cost factors; ease of installation, shipping and handling, and labor all point out the value of the transaction. Companies are now bringing things to market that reduce labor such as North Coast Electric’s new Southwire SIMPull reels. These wire reels are documented to provide huge savings in labor by reducing set up time, the amount of electricians needed, and speed in which the wire can be pulled. The net result is an overall reduction in the cost of getting that material to the site, installed and operational. A delivered value that has a tangible, measurable savings.
Another savings that can be looked at is Stored Material. Project material such as switchgear and lighting can be brought into a warehouse, received, examined for damage and bundled by area or room. Then it is brought to the site just in time for installation. The cost of this service will pale in comparison to the contractor performing this task. Documenting the labor saved by the contractor can be significant for a minor cost of such a service. Another way that delivering value ends up helping the contractor’s bottom line and proving that savings can be provided in more ways than a smaller price tag.
Written By: Bob Farris, Vice President of Construction Sales at North Coast Electric.