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When someone considers doing business with a company where they deliver goods or services over time, what's the most important thing to consider? (1 Viewer)

When someone considers doing business with a company where they deliver goods or services over time,

  • That the company keeps it's agreement you signed up for and does what they said they would do.

    Votes: 44 84.6%

  • The company offers a great price and is a better value than the competition.

    Votes: 3 5.8%

  • The company offers a great product that's better than the competition.

    Votes: 5 9.6%

  • The company offers something unique the competition doesn't offer.

    Votes: 0 0.0%
  • Total voters
    52
Joe Bryant

Joe Bryant

Guide
Staff member
I had this discussion today with regard to the MoviePass stuff and wanted to ask you guys what you thought.

When someone considers doing business with a company where they deliver goods or services over time, what's the most important thing to consider?

 
Last edited by a moderator:
IMO, without the 1st one, none of the others matter:

  • That the company keeps it's agreement you signed up for and does what they said they would do.
     
Assuming the 1st one holds, the other 3 are all good reasons to go with a specific company and at that point it depends on your needs. 

If it's a commodity item, then price is important.  If you're looking for a competitive advantage, the last 2 gain importance.

 
If it were available as an option, I would choose, "The company offers the best combination of price and quality compared to the competition."  Since that's not an option, I went with "The company offers a great product."

The way #1 is worded makes it seem sacrosanct, and I don't mean to say its not important.  But I will overlook a few days delay in delivery for most products if I'm getting a great quality product at a competitive price.  Stated differently, I'm not going to move to a lower quality alternative just because of a delivery issue for most of the stuff I buy.

 
I believe that the answer is contingent upon the motivational factors of the buyer/customer.  if this is a common product or service, then price and reliability may take priority.  if there is uniqueness, maybe just the fact that the vendor sells it. if it is a common, but superior product then we probably need to weigh the cost/added value of the differential.

 
#1.

Do what you said you were going to do, when you said you were going to do it, for what you said it would cost.

 
#1 the vast majority of the time. #4 only in cases where the uniqueness of the product gives such a huge benefit that it's worth dealing with other potential issues.

It usually doesn't matter if a product is a great value, better quality than everyone else, or unique if I can't rely on you to deliver what you promise when I need it.

 
NotSmart said:
IMO, without the 1st one, none of the others matter:

  • That the company keeps it's agreement you signed up for and does what they said they would do.
     
Assuming the 1st one holds, the other 3 are all good reasons to go with a specific company and at that point it depends on your needs. 

If it's a commodity item, then price is important.  If you're looking for a competitive advantage, the last 2 gain importance.
Click to expand...
This. Item 1 is table stakes. Item 2-4 are differentiators.

 
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I agree with others that number 1 is more of a first principle than a buying factor, though I would say that it could be overcome if the end result is still net positive.  

I don’t know all the latest on moviepass, but if the original deal was like any movie any time for $7 a month and then the terms changed to more limited stuff for a higher price but that was still a much better value than any alternative, there is some chance I would stay.  Though certainly some chance that it would just leave a sour taste in my mouth and not trust the company.  Would depend on the circumstances I guess.

 
Went with one for most instances.  

That said, my criteria for weekly trash collection are going to be very different than having my heart operated on.

 
#2 is the most important factor in selecting a company. Once I'm with them, if they keep up with #1 I'm rarely, if ever, going to shop around for a better deal. I'm happy with the product I'm getting at the price in paying. 

 
You can’t ask in a vacuum whether price or quality/service are more important.  The answer will always be “it depends.”  People will have different views on that for different types and classes of products or services. 

 
Marketing 101 Value Proposition answer... 

it depends.

You can compete on price/Value, you can compete on quality/reliability, you can compete on service... often there is a “leader” brand in each category.

What’s most important differs from person to person and often depends greatly on the product/industry. What service is being provided here? If we are referring to movie pass, I’d say service/reliability... trusting they would deliver full term.

 
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For people considering #1 when you see "keeps it's agreement you signed up for" do you consider that to also mean consistent price?  Do you consider Amazon Prime or Netflix to be violating this when they have increased prices over the year or do you say they keep the agreement you signed up for as they keep offering the service you signed up for at an acceptable price?

 
#2-4 go a long way to creating the relationship. #1 is usually what keeps the relationship.

Voted #1. Execution trumps promises. 

 
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In my experience, people decide based on price for their first choice and find that the company doesn't provide what they said, then they choose based on price for their second choice and find that the second company doesn't provide what they said, then price on their third choice... until they find someone who does what they said they'd do.  I think that's because it's hard to figure out who fits #1.  Online reviews help, but in some cases (industrial equipment), that's not really available.

 
Tick said:
In my experience, people decide based on price for their first choice and find that the company doesn't provide what they said, then they choose based on price for their second choice and find that the second company doesn't provide what they said, then price on their third choice... until they find someone who does what they said they'd do.  I think that's because it's hard to figure out who fits #1.  Online reviews help, but in some cases (industrial equipment), that's not really available.
Click to expand...
Good points. In many situations, counsumers have a hard time getting enough good information to determine which companies actually meet condition #1. So they end up assuming all of them can and just go with the lowest cost. Sometimes the lowest cost really is just fine and the company simply is more efficient or the owner takes a smaller profit margin, but other times the lowest cost is due to an inferior product or inability to truly deliver on time/consistently.

On the flip side, the highest cost isn't always an indication of best product either. Sometimes it can be an indication that the company operates poorly or doesn't really know what they're doing.

 
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