Advantage Pricing: The Positive Impact of c3’s Vertical Integration on Your Bottom Line

They say, “you get what you pay for,” because we typically associate higher prices with higher quality and lower prices with lower quality. But when we truly examine the cost that drives product prices, it becomes clear that the notion of “you get what you pay for” may not be as straightforward as it seems. In fact, c3controls products prove every day that you can spend less – 40+% less – while getting more in quality and value. As unbelieveable as it may seem, it makes perfect sense once you take a closer look at how c3’s key cost factors are impacted by one fundamental element: our vertically-integrated business model.
 c3 AdvantagePricing

Let’s examine the impact.

Manufacturing Costs

As manufacturers, we all understand that there is only so much control we have over cost when we are subject to fluctuation in the price of materials and we are reliant upon suppliers, distributors, and outsourced processes. And, in the bigger picture, we are part of an evolving economy that impacts overhead, market rates, and a number of other factors.

While we cannot control the outside world, there are, of course, choices we can make that can help maximize the control we have within our businesses. At c3, we decided early on that utilizing a vertically-integrated business model would give us the ownership we wanted of every step of our industrial controls manufacturing process. As a result, we can control costs in the supply chain. This control translates to as much as 15% savings that can be passed on to our customers.

Distribution Costs

To run a successful and sustainable business, we are not only challenged to make great product but also to employ effective distribution channels. Often, it is necessary to partner with external distributors. This factors heavily into product pricing where distribution costs are recouped.

At c3, our vertically-integrated business model places distribution in our wheelhouse along with everything else from product development and testing to manufacturing and support. All sales are direct from c3 to customer. There is no external distribution channel. So, the amount that would otherwise go toward paying the middle man (as much as 25%) is extended to our customers via lower product prices. And an added value of the internal nature of our sales and support team is that customers receive product education, sales assistance, and support from people who have extensive, first-hand knowledge of our control products.

Beyond Product Price 
There are a few additional ways that c3’s vertically-integrated model contributes toward lower overall cost, further contributing to the bottom line results that are important to you and all our fellow manufacturing businesses.
Quality
For example, when we look at managing cost, we must also take into consideration product performance and life. Lower priced items do not reduce overall cost if they do not perform well or if they need to be replaced sooner than other longer life options.
c3’s vertically-integrated model allows us to provide lower prices while providing and guaranteeing superior quality because the entire process – from product design and development all the way through to testing and manufacturing – is within our control. This gives us the confidence to provide a lifetime warranty for each of our products and gives you the peace of mind of knowing you can rely on your c3 controls products for optimum performance and cost efficency on every level.
Time
Time is money and money is time, right? So an inexpensive product that takes twice the time to install, requires frequent support calls, or is difficult to maintain can end up costing you more than the product price savings is worth.
c3 products allow you to take advantage of both the price savings and the time savings. With control over every step in our product development, manufacturing, and support processes, our team can keep its fingers on the pulse of customer needs and innovate accordingly. We understand the value of time, so we keep ease of installation, use, and maintenance in focus during product development and testing.
Our commitment to your success is one of our core values. To fulfill that commitment, we aim to be a trusted partner to you and your business by providing the best control products for your machines and by helping to make a positive impact on your bottom line.
To learn more about how c3’s unique business model allows for Advantage Pricing and other cost benefits, watch our latest video featuring c3controls Senior Vice President of Innovation & Development, Paul Alwin.

 

To schedule a free consultation and cost savings analysis, call us at 724.775.7926.

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