De-Valuing the
Competition
By: Bob Linster
An Exercise In Self Assessment
Why Would You Buy From You?
Do you live up to your own
expectations?
Do you “sell” up to your own
expectations?
A Competitive Review Analysis

Why “Added Value” is so critical in today’s
Rescue Tool Market
– The Rescue Tool Industry
– Rescue Tool Dealerships & Sales Personnel
– Modern Day Products
The Rescue Tool
Industry
The Playing Field has Changed
The Industry Playing Field
Customer
Autonomy
# of
Competitors
Grants
Marketing
Dealerships
Diversity of
Products
Customers
Pricing
NFPA
Industry Playing Field

Each one brings a unique set of conditions that
require attention in order to maximize our value
to the customer
–
–
–
–
–
Number of competitors
Variety offered within the industry
Perceived autonomy held by the customer
Various pricing strategies amongst the competition
Pure competition
Yesterday’s Rescue Tool Market –
where it all began

Industry Structure
– Differentiated Oligopoly

Characteristics
–
–
–
–
A few firms produce partially differentiated items
Differentiation is by key attributes
Premium price may be charged
Value was given to product based upon its availability
Today’s Rescue Tool Market –
where we are today

Industry Structure
– Pure Competition

Characteristics

Many competitors offer the same “type” of product
Price can become dominant issue due to lack of product
differentiation
Value is lessened due to Market Saturation
“Commodity” Status is around the corner

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Price / Quality Matrix
Hurst
P
r
i
c
e
Power
Hawk
Holmatro
Centaur
Res Q
TNT
Lancier
Stanley
Husky
Amkus
Genesis
Phoenix
Champion
Ferrara
Ogura
Quality
What are the Customer’s Choices??
Spreaders –
 Cutters –
 Combination Tools –
 Rams –
 Power Units –
 Battery Operated –
 Manually Operated 
35 models
61 models
21 models
53 models
87 models
11 models
3 models
A Look at the Squirrels and the Nuts
Players
Markets
Categories
AMKUS
Fire
Twin Line Hydraulic
Centaur
EMS
Battery Operated
Holmatro
Law Enforcement
Commercial Hydraulic
Hurst
Military
Pneumatic
TNT
Collapse
Drill Operated
Genesis
Res-Q-Tek
Confined Space
Niche
Lancier
Government
Phoenix
Industrial
Power Hawk
Stanley
Ogura
“Added Value” becomes critical when….

A product can be procured through a variety of
channels or sources

A products performance can be easily matched
by competitive products

Product differentiation is no longer recognized
by the customer

All the squirrels are competing for the
same nut
Why “Added Value” is so important

You will eventually be assigned a role by the
Customer
– Seller
 Right place, right time – Capitalize on misfortune
– Vendor
 Simply a name and address to the customer
– Supplier
 Often asked to quote and deliver when something is needed
– Partner
 Part of the Planning Process

Strive to become a partner by having a value
All things considered equal…

To convince the customer that they
“need” to buy from you, tangible and nontangible factors must be value enhanced
Tangibles
In-tangibles
•Products
•Service
•Vehicles
•Customer Service
•The Organization
•Knowledge
•Resources
•Support
•Information
•Experience
Let’s go buy a Computer
An exercise in “added value”
Each step requires more and more
value to remain in the game
Value
Value
Value
Value
Value
Those lacking in “value” are weeded out
in each step of the buying process
Three Levels of Devaluing
the Competition
Dealerships
Personnel
Products
I really liked your presentation
and your tools performed
exceptionally well
But….
I don’t see the value in buying
from you,
“yet”
The customer is presented
with two types of value
Perceived & Performance
Values
Where are your strengths?
Types of Value

Perceived value
– The promise you make
– Everything you do to build customer anticipation and expectation
for your solution
– Includes re-packaging, brand name, expertise, reputation,
knowledge, training
– Qualitative examples of how you bring value to the customer





they generally describe who you are
the quality of your word
the quality of your service
the quality of your knowledge
the quality of the products your represent.
Types of Value

Performance Value
– The proof behind the promise
– Provides greater effectiveness
– gives the customer the opportunity to do something
they have been unable to do
– makes their job easier or safer
– Performance value is quantifiable-it can be measured
and assigned a dollar value
Perceived Value May Get
You The Business
Performance Value
Brings The Customer
Back
Are You a Value Added Dealer?

In today’s market if your company sells
someone else’s products and you do little
to add value, you could be in trouble

If your company resells someone else’s
product and you wrap it in layers of value,
you’ll continue to grow and get stronger
Where “Added Value” fits in

If you don’t compete in today’s market with the
value added approach, you either have
– a product so desirable that they are standing in line
to get it from you (Harley Davidson)
– A product that competes exclusively on price
(Gasoline)

Not everyone wants value added
– One out of six are only interested in price

The buyer must understand the link between
your value added and their needs = their gain.
How Distributors Add Value

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Inventory
Customer Transition
Planning
Maintenance and Service
Personnel
Company qualitative

Be certain to sell the “value” and not cost
to these functions
The Value Added Sales Call

Understand your customers situation as
thoroughly as possible before you take his time

Think through the sales call from the customers
perspective

Prepare something of potential value for every
sales call

Be a resource
It’s Not Just About The Tools
Anymore

You must know your tools better

You must know your competitors tools as well as
you know your own

Be aware of competitor pricing but concentrate
on your customers needs and how you can ease
their pain

If you keep doing what you’ve been doing, your
not going to get what you’ve been getting
Value Added Selling Attitudes

Define value in customer terms

Seek ways to add value, not cost
– Sell value, not price

Sell to the customers needs, not the
competitions package

Remember it’s a team sport

Serving is a privilege, not a pain
How we uncover the Customer’s Idea
of Added Value and how we fit in

Ask the right questions of the right people

Listen to the prospect

Ask more questions
If we know our competitors,
we know ourselves
What and Who are we really
competing with?
Key Competitors

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Holmatro
Genesis
TNT
Res-Q-Tek
Hurst / Centaur
Phoenix
Lancier
Power Hawk
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Peers
Fire Department
Personnel
Road Warriors
Generation X
VRT Instructors
Lost Customers
County Schools
Ourselves
Customer and Competitor Orientations
for a Dealership

Competitor-centered companies evaluate what
competitors are doing, then formulate
competitive reactions

Customer-centered companies focus on
customer developments when formulating
strategy*

*This is where we need to be
Competitive Dealer Analysis –
What is their Direction?
Key Competitive Characteristics
to be Identified:
Strategies
Objectives
Reactive Patterns
Strengths and Weaknesses
Effect a firm’s competitive position
Dealership Strategies
More Resources
Complimentary
Goods
Training
Innovation
Service
Cost Reduction
Specific
Attack
Strategies
Package-price
Offers
Multi- Department
Discount
Improved
Services
Distribution
Innovation
Advertising Promotion
Are you Attacking or Being Attacked?
The Guard has Changed

Our customers have changed and we must change
accordingly…
– We are no longer a “Sole Source” provider
– Even our “good” customers are calling others and are doing
research
– Our competitive advantage is no longer entirely product related
– We can no longer assume that our customers are going to call us
first, if at all
Leveraging From Strengths

What is Differentiation:
– something you have that the competition
doesn’t
– Relevant and Critical to the buyer in this
specific sale
– Improves your position with buying influences
Dealership Resources
Owners who don’t do demos
 Owners who perform demos
 Sales Managers who don’t do demos
 Sales Staff who don’t have tools
 Sales Staff who occasionally have tools
 Sales Staff who always have tools
 Sales Staff who are also the Service Tech
 Sales Staff who sell everything
 Sales Staff who work with brochures
 Sales Staff who have never worked with Rescue
Tools

Everyone can add a value to the organization,
but is everyone a value to the customer?
Value Added Resources
Qualified Staff to effectively cover territory
 Utilizing your Regional Manager for key customers
and Events for support
 Gain creditability through Certifications

– VRT Certified, State or County Instructor Status
Intense internal training for novice Sales Staff
 Maximize potential with catalogue Sales Staff
 Tag Team where necessary

Dealership Presence
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Extrication Competitions
Train the Trainer Programs
County School Programs
Internet Exposure
Open House Events
Training Seminars
Trade Shows
AMKUS Social Evenings
Relationship
Selling
Dealership Products

A dealership offers more products than
simply a tool
– Sales
– Service
– Information
– Training
– Support
– Relationship
Competitor Pro’s and Con’s
Amkus
 Pros
Improved marketing
 Factory support
 Durability
 Price
 Warranty
 Weight
 Pursue grants
aggressively
 PTO system
 Management changes

 Cons
Weak distribution
 Control valve location and
safety
 Not entirely NFPA

– Testing facility-SEI

Lack of New Products
TNT
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 Pros
Aggressive pricing
Warranty support
Weight
National training
exposure
Dealer by area
Spreader tip design
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 Cons
Durability
Weaker
Overheating
Control valve safety
Not entirely NFPA
Weight
Mfg process
Hurst / Centaur

Pros
Deep Pockets
 Product Diversity
 Moderate marketing
 Some National training
exposure
 Dealer by area
 Spreader tip designs
 Accessories
 Existing Customer Base


Cons
Power Unit performance
 Identity
 Overheating
 Control valve safety
 Weight & Speed
 PRICE
 Warranty
 Management Changes
 Growing reputation

Genesis

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 Pros
Esthetics
Weight/balance
Improved marketing
Price
Improved distribution
by area
Diverse line
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 Cons
Control valve/location
Durability
Performance
Spotty Distribution
Inconsistency
Questionable NFPA
testing
Holmatro
 Pros
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Aggressive marketing
Diverse tool line
Design/esthetics
Weight
Distribution/by area
Training image
Core technology
 Cons
Coupling issues
Cost of ownership
Not entirely NFPA
Control valve safety
 Relief valve vents to rear
 Distribution weak by area
 Speed of Core system
 Core system unproven
 Durability
 Weaker
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Value Added “Team” Products

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Manufacturing Quality
Support
–
–
–
–
–
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Delivery
Service
Technical Support
Parts
Literature & Marketing
Modern Products to solve problems
Meeting or Exceeding Industry Requirements (NFPA)
Meeting or Exceeding Customer Requirements
Thank
You