Why successful businesses focus on total cost – not unit price

JCS Hi-Torque are the UK’s leading supplier of worm drive hose clamps. Producing over 25 million clamps a year at their Suffolk factory, JCS have a reputation for providing the highest quality products.

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What’s so important about total cost?

Tom Allen, sales manager at JCS Hi-Torque, explains why focusing on total cost and not just unit price has been beneficial to the business:

“Come to our manufacturing facility and you will see machinery ranging in age from 30 days to 30 years old. JCS are continually looking for new ways to produce our clamps more efficiently without any compromise on quality. With over 60 years’ experience producing clamps, it has been repeatedly proven that buying high quality production machinery in the first instance, and maintaining it properly, saves the business more money in the long term than the initial price difference of buying lesser production machinery.”

“All the raw materials used by JCS are sourced from European suppliers, mainly Germany. In the past JCS considered materials from outside Europe but found the quality and consistency of the metal was not sufficient. Ultimately the issues caused by using sub-par material on the production machinery and clamp performance nullified any savings in material costs.”

“A failure situation is an added cost to your business, and remember the customer doesn’t blame the hose clamp they blame your product or installation.”

“For our customers, overall cost is more important than unit price, especially when really it’s just the price difference from the alternatives you are considering. A clamp failure could mean simply replacing it on the production line or it could mean an expensive warranty claim for a broken down super-yacht in the middle of the ocean. Either way a failure situation is an added cost to your business, and remember the customer doesn’t blame the hose clamp they blame your product or installation.”

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Overcoming existing problems

JCS have recently announced a new banding product for the HVAC market. With a unique double headed connector, the system is quick and efficient to use with no training or specialist tools required. With no loose parts the system is also safe for use at height.

“Rather than producing a new product to meet an artificially low unit price, we have reduced the overall cost to installers by reducing wastage and installation time. We have listened to feedback from installers regarding problems with existing systems and believe we have overcome these issues with JCS Banding.”

In many markets, manufacturers and retailers will fight it out to offer the lowest unit price to consumers. This can be a false economy and can often mean product quality and customer service are compromised. Businesses can and will benefit by focusing on overall cost rather than price alone.

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If you would like to know more about the brand new JCS Banding, then please call us on +44 (0)1787 376212 or email us.

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