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Originally Posted by 69gmcc10
I think this is a great subject and as a business owner myself and as a manager of other businesses before that (nothing to do with auto repair, maintenance, or modification industry), and I have always struggled with providing the same thing you are trying to provide to your customers or potential customers.
First, the use of the word "budget" should be thrown out the window and never used, not necessarily by you but everyone (customer and business), but it never will be. Most every person has a "budget", it is a relative term, and some people have a $500 budget and some have a $40,000 budget and sometimes the budget they have gets thrown out the window.
Second, What any good business person is looking to offer to there customer is "value" and "value" comes in a plethora of different ways. "Value" can be a good product for a reasonable price, it can also be the expertise of the person you are buying the product from and the knowledge they provide to the customer, it can simply be the quality of the product regardless of price compared to there competitor that makes it a value, and there are many other ways to add "value." People only concerned with price are the last people a business wants as a customer, they are overwhelmed with problems.
The largest issue business owners run into today is trying to please a percentage of the potential customer base that will always complain about price regardless of quality or the "value" associated with the product they are planing to purchase, or who they are purchasing it from. More and More, in a society that researches, finds what they want and then goes on line to get it for the lowest possible price, regardless of its source or "value" (quality bundled into value), is damaging to quality businesses. It is especially damaging to small businesses trying to compete on a global scale that does not have access to cheap labor, the easiest place to cut costs. But, why am I telling you this? You fight this battle every day.
I do think that you are doing it correct in your current business practices and the products you sell. Product packaging and flexibility as we are talking about are excellent ways to add even more "value" to an already excellent business plan that is mostly already in place, but increasing awareness abut the "product packages" you currently do provide, and filling any holes of any demographic you are missing will add even more "value" to an already excellent company.
I like the idea you stated earlier of, more or less, starting with a affordable value oriented system and expand as you budget, wants, and needs allow. The one thing I do not see on your website is an air management system that has analog valves, something when the customer out grows that they can upgrade to something like your switch speed or e-level systems. That might open up a new price point for your customer base that can add value and not compromise quality or margin? But, your switch speed system and stage 1 kit front and rear is about $2200 and in my opinion is a good place to start with if you want to go with bags.
I think the real question to ask is at what price are people willing to convert form coils to air? That is the segment of customers a business wants to develop. I don't think your competition is other people selling air systems but moving people over to air in a easy to order, all-in-one product. The people hunting for "cheap" deals, or to use the word they like to justify there frugality with, "budget", know what they want and are only really looking for a cheap price. How do you push the people that understand the quality and "value" you provide that are standing on the fence weather to go air or coil to land on your side? How do you create those customers and not just buy customers looking for a deal?
People in the static world respect you and your company, and many of them are on the fence to go bag or static. With a price of $800 for a static 4/6 drop from another well respected competitor, I think you can convert people to a bare bones air system with better ride and adjustability for about $1250. That I think that would turn some heads and sway some people, I certainly know what my next suspension would be without a doubt for that price (I am one of the static guys on the fence). But can you make that profitable for your business? I don't know if you can provide a system of reasonable quality for that price and not loose money? Don't cut your teeth searching for unappreciative customers.
BTW, I love that you trust this forum so much to share with us this kind of stuff and you use us as your feasibility focus group! I hope you find the answers you need.
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This is great feedback, and I appreciate you taking the time to respond in such a thorough manner.
The reason I used the word "Budget" in the title, was in an effort to gain a little more interest and possibly feedback.
I am in 100% agreement with your philosophy when it comes to the differences between the word "budget" and "value". People's interpretation and definitions of this (and anything else for that matter) is influenced by their perspective. Everybody has a little different mindset, and I understand that.
Our goal is definitely not to capture the individual looking to find the least expensive product that is advertised to do the task. But to provide the consumer looking to maximize his/her budget when it comes to a moderate air suspension conversion, a system that contains quality parts, is designed to work together and function as intended, and be able to be installed by the weekend enthusiast in his/her garage. (This will be a kit that does not require mods to inner wheel wells or bed floor).
It isn't necessarily intended to capture the fence sitters that aren't sure on whether or not they want air suspension or a static drop (we are also working hard on developing our static line) ... but to be a solid solution to those that already know they want air, just might not be 100% sure on how they will accomplish it. The thought of installing an air suspension can be both exciting and overwhelming. Our objective will be to provide the product/content/instructions/and service in a way that will build the end users' confidence and differentiate our product as well as highlight its "value".
Price point on the parts will only be dictated by a cost and margin calculation. I have been doing things long enough to know that if we can't make money doing it, then we better not do it. Our goal is to continue to grow and provide truck enthusiasts with suspension solutions for years to come. The only way to make that happen is to be profitable.
I am grateful for all the responses thus far. This forum is what really helped boost PB when we were just a little more than a dream. I have always valued and respected the individuals that frequent this place. There is a broad enough demographic where it only makes sense to come seek input and information.
Thanks again for all your help guys! Keep the comments coming. We will have more details in the upcoming weeks.
Nate