Fierce competition in the AODDP market
GM Pumps CC has vast experience in this industry and is the driving organisation in marketing the Fluimac brand in Southern Africa and the UK. To serve the industry rapidly and with qualified service and sales teams, GM Pumps is committed to providing training and holding extensive stock. Our extremely active sales and support team continually stand by to assist both resellers and end users in any way we are needed. We are committed to supporting our stockist/distributors in all major centres of the territories in which we function.
While we progress in this endeavor, we are continually excited by the valuable lessons we have the privilege of learning as our organisation grows the distribution network. Looking at our efforts and experiences as we reach out to the end users who will benefit from our holistic offering of product, service, and expertise, we recognise the fight from the larger brands as we make our mark in the industry.
CUSTOMERS ONLY BENEFIT FROM OUTSTANDING SOLUTIONS WHEN MADE AWARE OF PRODUCT BENEFITS
While Fluimac Diaphragm Pumps are very quickly accepted into the market through the exceptional efforts of our service and sales team, we do experience our share of disappointments. It can be really disheartening for our reseller agents to suffer the loss of an order to the more established “big brands” of the industry, especially when they have put in a huge effort to enable the customer to experience the Fluimac difference.
It goes without saying, one can have the best product, great technical literature, even outstanding “no obligation” trial units and still lose the business.
The customer cannot fully benefit from our product if we don’t fully participate all the way through the purchasing decision process.
ESTABLISHED BIG BRAND COMPETITORS DRAMATICALLY CUT MARGIN TO COMPETE WITH FLUIMAC
Today (14/02/2018) was such a day in the life of the Fluimac brand in South Africa.
The pneumatic diaphragm pump industry is highly competitive, dominated by established brands, Wilden, Sandpiper, Blagdon, Aro, Yamada, Versamatic, Verder and Graco.
Through one of our resellers, we helped to promote our Fluimac air operated diaphragm pumps to a medium-sized coatings company based in Cape Town. A trial pump, with no obligation to purchase, was provided for testing on their viscous paint products. Three months after the unit was delivered, the trial was completed with the very excited customer reporting that they were really impressed.
The Fluimac P160, our 1” pump, had outperformed their BIG Brand NAME 1” model they has been using by a significant margin. The customer further indicated that Fluimac was the preferred purchase option, and, they urgently needed 5 units.
Two days later, that good feeling of having recognition for our products outstanding quality, exceptional design and performance was shut down. The gushing customer satisfaction report with acknowledgment of the superiority of the Fluimac product, our service, and commitment to support was all blown away as we were informed that the company MD made the decision to go with the BIG brand option, seemingly based purely on “PRICE”.
Essentially the Big Brand sales team took advantage of having existing product on site. It is possible that they love the spares revenue and simply factoring in dropping the new unit pricing significantly, secure the sale and the revenue stream from future spares orders which will then continue and escalate.
A very embarrassed factory foreman was tasked with informing our sales agent that this had occurred. Essentially the decision was made by the person with the authority to do so. Our sales agent has incorrectly invested in the wrong person in terms of the decision process.
Correct pump materials and pump size produce up to 30% savings
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Fluimac, challenging the BIG BRANDS
Fluimac is being recognised by end users as having: –
Outstanding Support in terms of spares and technical skill,
Fast Deliveries nationwide
The Lesson we learned today.
• While Fluimac as a brand is smashing down the barriers to entry in this niche pump market, we cannot afford to be complacent in assuming our resellers know the product as well as we do. We need to greatly improve our mentorship role to transfer the understanding and passion we have for our brand.
• Train new resale organisations thoroughly so they understand the size comparisons, performance and construction material options to fully benefit the end user. (We had offered a far superior build compared to the customers need and the oppositions offer.)
• Ensure the resale agent is communicating the correct data to the end user customer. Provide the reseller with the correct format of the quotation to include all the technical detail relating to the product being offered. (The reseller did not submit the offer to the customer in a clear and concise format.)
• Because of the highly efficient pump design, it is imperative that we Include an offer for one pump size down, leaving less room for the opposition to counter offer. (The Fluimac 1” pump outperformed the BIG brand, used less compressed air, was quieter, has a much more robust build, is available ex-stock, is fully supported locally in spares and services. Our ¾” P100 competes with their 1” pump size)
• Monitor the opposition activity with the end user as closely as possible to understand their sales effort and methodology. (Our reseller accepted a non-decision makers word as a given order signal instead of identifying the actual decision maker and making contact to build the relationship