Over 5 years ago, (September 27, 2000 to be exact) we published our first newsletter. Since that time, we have written over 100 newsletters (123 to be exact) about the importance of indoor comfort and what you can do…to be more comfortable…to save money by having a more efficient system…in general, to improve the living conditions in your home.
Early on (our 16th letter) we confronted the issue of “competitive pricing” in one of our favorite fables entitled “The Lowest Bidder”. We’ve revisited this subject several times in our newsletters but like most things worthwhile, it bears repeating. We’re reminded of this from time to time, especially when we see disasters like the gulf coast hurricane Katrina.
On a more local level, our 50+ year’s experience has prepared us for the realization that in all probability, we’re not going to submit the lowest estimate for any job we quote. In fact, when we do, we’re pretty sure we must have left out something for we learned long ago, that in many respects a heating or cooling system compares very favorably with the old saying “that there are three things that you can put in a box”:
1. The best service
2. The best product.
3. The lowest price.
However, only two will fit at the same time. Which do you want?
For we know that our “competitors” have to pay the same price for a truck that we do…gas is no cheaper at his gas station than it is at ours…tools…liability insurance…uniforms…wages…unemployment compensation…taxes, are all about the same and must be paid!
So any major difference in price must be coming from somewhere else. The number one suspect when this occurs, is that in all probability, the equipment in the competing proposals are not the same…or there’s a difference in warranty…or in service…or in conforming with codes and regulations…or maybe the low bidder has decided to work for less profit (we see a lot of that kind of business philosophy these days)…figuring he can make it up in volume!
Low bidders rarely know the real cost of doing business. As a consequence, they usually have little or no support staff…employ people with limited experience as there is no money for training or attending educational seminars…is not interested in the latest technology…and living from job to job, has no room for errors…falls behind on payments to suppliers…and eventually crashes.
No, we will probably not be the low bidder on your job but we’ll match our 50+ years of experience and satisfied customer record with any one...that our proposal represents the best value you can get for the price quoted and when you need us, we’ll be there to serve you. It’s true as the old adage asserts that “The fastest horse does not always win the race but that’s the way to bet”.
We thought you might like to refresh your memory by re reading that old fable re the “Lowest Bidder” and so have printed it here. As we mentioned in our original printing, we have never seen any author for it. If anyone knows who should receive proper credit for it, let me know and we will gladly acknowledge it. Until then we will just credit it to “Anonymous” but it's moral is just as valid today as the day it was written. Here's the story:
“When the river rose, the dam gave way.
There was too much sand and not enough cement.
The lowest bidder had built it.
When the rains came, some cellars leaked
and had to be pumped out.
The lowest bidder had dug them.
When the gales came, some
houses went right along with them.
The lowest bidder had built them.
And then rebuilding started.
Some structures stopped halfway.
The lowest bidder had made a mistake”.
The same fact is evident in the purchase of Heating and Cooling systems.
When you buy solely on price, you can never be sure. It's unwise to pay too much, but it is worse to pay too little.
When you pay too much, you lose a little money...that's all.
But when you pay too little, you sometimes lose everything
because the thing you bought was incapable of doing the job it was bought to do.
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