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.
Let’s examine the impact.
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.
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.
To schedule a free consultation and cost savings analysis, call us at 724.775.7926.