Giving You the Most for Your Money
How Fixture Manufacturers Add Value to Fixture Programs

Larry Myer, Retail Consultant
F.C. Dadson, Inc.

When it comes to selecting a fixture manufacturer, how do you decide who to work with? Maybe you have a list of preferred vendors or a company that you have already worked with and trust. If, on the other hand, you are blindly shopping around, chances are price will affect your decision, but it won’t be the only factor. There’s a little thing called value that also comes into the picture, and this guy isn’t always as obvious and straightforward as price usually is.

The way I see it, there are two main types of value at play here: presented and perceived. Presented value is that which the fixture manufacturer promotes itself as having, such as a warranty program or an on-site design and engineering team. Perceived value, on the other hand, is the value that you, the customer, see the product and company as having. People generally don’t decide to buy unless their perceived value equals or surpasses the product’s price. Presented value, however, can influence perceived value. Knowing this, fixture manufacturers strive to add value to fixture programs in order to win over customers.

Manufacturers are adding value in a number of ways. One increasingly popular way is to expand their service offerings to encompass more than just production activities. This can include adding a design and/or engineering department or providing nationwide installation. As a way to add value for our clients, my company has begun sourcing equipment and graphics packages. All of these services complement the core service of manufacturing fixtures and aim to increase a potential client’s perceived value of the company. Many companies also bundle these services together for a discounted price to those who choose the whole package and add further incentive for clients to work with them.

Another way manufacturers are increasing value is by finding ways to increase the intrinsic value of the fixtures. A fixture’s intrinsic value is the actual value the piece itself possesses. This includes the materials, finishes, and hardware used. Using more durable materials can extend the life of a fixture, adding to its value. Luxury materials can justify a higher price tag by increasing value in their own way. These things present an image of quality which influences perceived value.

In addition to their products, manufacturers also look for ways to add value to the production process. Many companies promote themselves as being a “custom shop.” For those potential clients with unique demands of their fixture programs, the flexibility of being custom provides some extra value. Automation is also becoming the focus of manufacturers as a way to increase efficiency and accuracy. The result of these efforts is reduced lead time and costs, two things a client can appreciate.

However, value adding doesn’t end when the product leaves the production floor or warehouse. Follow-up support and activities are also doing the job. Many companies include some type of warranty with their fixture packages. Others assign a project manager who becomes the point person for the account and troubleshoots issues when they come up. These activities leave clients feeling supported after the sale. Satisfaction guarantees and refund programs helps reduce any purchase anxiety that arises; and some other companies engage in value engineering activities for repeat orders, improving efficiency and value with each production run. Depending on his or her demands, these offerings may mean a lot to a client.

While not as popular as price, value is still an important deciding factor when purchasing fixtures and manufacturers have taken notice. Companies are competing on value by adding services, improving products and processes, and strengthening their follow-up. While manufacturers potentially gain from these activities, it’s important to remember that customers also benefit from value-adding initiatives. So, don’t be afraid to see what you can get for your money. It could turn out to be quite a lot.

 

Larry Myer is a Retail Consultant for F.C. Dadson, Inc., a nationwide fixture management company. The company offers space/floor planning and conceptual design, graphics, POP displays, trade show exhibits, turn-key fixture design and manufacturing along with nationwide installation.

To learn more about F.C. Dadson, Inc., click here. You can reach their national sales consultants at (800)728-0338 or visit them on the web at: www.fcdadson.com