Price, Quality & Service – What Matters Most?

Price, Quality & Service – What Matters Most?

Matt Michel, Contributing Writer
Service Roundtable

The meat market in Lewisville, Texas is a landmark.  Not only does the meat market sell meat, it serves great lunches, including outstanding BBQ, homemade pies, etc.  Every year, we hold a “Rib Off” at the Service Roundtable where we buy ribs from three different restaurants and conduct blind taste tests for the sauce and meat.  The meat market wins every time it’s in the competition.

The meat market offers great quality.  It stands out.  Amidst a sea of big box grocery stores, this classic butcher not only survives, it thrives.  For now.

After a big company win a few weeks ago, I declared a company lunch.  David Heimer walked over to the meat market for ribs.  Looking at them in the case, David declared, “I’ll take them all.”

“Can’t have them,” said the meat market counter guy.
“Why not?”
“Cause then I wouldn’t have any to sell.”
“So?”
“You can have one pound.”
“So you’re telling me I can bring eight people over here and we can each buy a pound, but you won’t sell me eight pounds.”
“You can have one pound.”

David was steamed.  He left and went to Dat’s Good BBQ, where they were more than happy to sell out.

“First come, first serve,” said Dat.

Dat’s, by the way, just expanded.  They moved the restaurant to a larger location.

I wondered what was going on at the meat market.  Later, I learned that the longtime owner sold the business.  Hmmm.

Service companies, whether plumbing or BBQ, compete on the prices they charge, the quality of their work and the products they provide, and the service they deliver.  Let’s compare the meat market with Dat’s.

Price

I just asked David what the difference is between the price of ribs from the meat market and Dat’s.  He didn’t know.  Price is important, but not necessarily the most important factor.  To a point, price need only fall within an acceptable range.

If price was the deciding factor for ribs, David would have hit the McDonalds’ drive through for a few bags of McRib sandwiches.

Quality

Dat’s quality is good.  The meat market is better.  It may be the way they cook the ribs. It may be the rub.  Personally, I think the meat market starts with a better quality rib.

Does this imply that quality doesn’t matter?  Hardly!  But sometimes good enough is good enough.  Good enough meets the minimum acceptable level.  Dat’s has good ribs, very good, even if the meat market surpasses them.

Service

Here’s the rub for the rib experience.  The meat market failed.  Period.  Their service was poor.  Their attitude was bad.  They were difficult to do business with and unyielding.  It cost them business, not just on the day David attempted to buy their last eight pounds of ribs, but going forward.

If the meat market counter guy had been merely surly and not obstinate, the meat market would have gotten the business that day.  It may have still lost future business as David choose to buy from Dat’s in anticipation of surliness at the meat market, but that day he was ready to buy.  Like quality, the service must be “good enough” (or not “bad”).

What Matters Most?

So what does matter most?  All three factors matter.  Failure with any single one can kill a current sale and/or cost future business.

As long as the price was within a range, it did not determine where David bought the ribs.  As long as quality was above a certain standard (i.e., the fuzzy, “good enough”), either would do.  As long as the service also exceeded a minimal level, it is not a factor.

It’s the totality of the offering that drives customers and constitutes value.  Few contractors price outside of an acceptable range for the bulk of their customers.  If anything, they probably price too low.

Most contractors can perform to a minimally acceptable level.  They are “good enough.”

It’s service where one stands apart from the others.  Price, quality, and service all matter equally, but for service contractors, it’s service that wins current and future business.

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