Why is price so deceptive ?
The selling price of a product consists of several factors - one of them being part
of the 'service' component. Most IT distributors are only concerned with appearing
to be 'the cheapest' and attempt to lure customers or business through extremely
low prices. While low prices can most certainly be offered through scales of economy
and efficiencies, many companies cut the service or quality element of the price
- sometimes both and are then incapable of providing a proper after sales service.
You do get what you pay for and what CyberDyne has always advocated is that customers
should look at the big picture, being Quality, Service & price - not simply the
selling price.
I have heard that certain distributors offer rock bottom prices, but are 'hiding'
costs. What does this mean ?
Simply put, certain distributors will offer product at extremely low prices to attract
customers. Only once you sign up as a dealer do you find out that in order to obtain
the product at this price you either need to purchase a certain minimum quantity
or delivery costs will apply. Once more when comparing prices you need to be asking
questions. It is all good and well a distributor being for example R 30.00 a unit
less than CyberDyne, but if this distributor is going to charge R 100.00 for delivery,
then their true price is actually higher than CyberDyne.
How does saving me time put money back into my pocket as a reseller ?
A perfect example would that of a typical reseller who runs a one man business and
has to take care of all facets of the business, including product returns for service.
Most of the major South African distributors can take over an hour or longer to
handle a simple one-for-one swap out under warranty. CyberDyne is able to process
most component swap outs in under 15 minutes. This time saving alone is putting
money back into your pocket because if your time is worth say R 500.00 per hour,
every hour you are standing in a queue making a return is costing you R 500.00.
You may have purchased the item originally for a few Rands less than CyberDyne,
but should you need to make a return, this perceived 'saving' is quickly negated
and replaced with an actual loss. Without question, time is money and that is why
when choosing a distributor, these type of questions need to be asked.
Is there really a difference in quality between branded and non-branded product
?
While the saying 'You paying for the name' is a common one, there is more often
than not a difference in quality between branded product and non-branded product
in that a reputable brands primary concern is to protect or uphold its reputation.
This means that during manufacture, more attention is paid to areas such as compatibility,
reliability and ease of use - driving up the cost which ultimately results in a
higher selling price. Again we may revert back to the issue of time saving in that
a product which installs and works without any issues out of the packaging is actually
cheaper in the long run than one that has a lower selling price, but for which time
needs to be spent to get it to work correctly.
What is the quality of locally branded computer components & accessories ?
Quality varies from good to extremely poor. What needs to be understood here is
that at a component level, South Africa lacks the ability to manufacture locally.
Locally branded product is simply product that has been procured from overseas manufacturers
and re-branded in the name of a local supplier. Because so many of the local suppliers
are trading purely on the basis of price, they will order product from whichever
foreign manufacturer is able to offer them the lowest price at the time of order.
As an example, they may be branding their Flash Drive products with their company
name and will purchase an initial consignment from manufacturer 'A'. When it
comes time to re-stock the product, they may find that manufacturer 'B' is offering
a lower price and will switch their orders to this supplier. The net result of this
is an inconsistency in terms of quality as product from manufacturer 'A' may have
been of better quality than manufacturer 'B'. This is why unless a local supplier
is prepared to divulge exactly who the original manufacturer is, it pays to spend
a little more on an International brand for which the source of manufacture is a
known quantity.