Know-How Exchange : Customer Behavior

Printer ink is a challenge, as it is considered a commodity by the buyer. As such, the buyers will usually go with who has the lowest cost.

But the manufacturers are trying to use ink as their cash cow. They just about give away the printers with the plan that they will make a lot of money on the consumable ink.

I think something is going to have to change here, as this model may not last. But that is a long term issue and separate from your question - sorry to get off track.

Assuming you can't change the product, one way to help build loyalty is to provide other services that outdo the lower price competitors. Better delivery, always have product in stock, sell through channels that they use for their other purchases (so they don't have to make a special oreder just for ink), etc.

If you do have the ability to change products, perhaps you could develop inks that do more (better quality) or make ink cartidges that the non-manufacturer suppliers can't refill and haven't duplicated yet.

ramesh iyer,

To answer your last question first I don't think what you are dealing with is any different than what all other companies that have competition are facing. Where competition exist loyalty is in question. Where budget restraints and cut-backs are present people look for other alternatives. For every cause there is an effect. So look into why the effect is happening. What you must tap into is why are people choosing alternative refills? Are you clearly educating your customers on the benefits of why they should continue to obtain refills from you? And why are the original refills better or superior to the refills they are choosing.

Is there a viable option or a proposition for the company that can make these business people loyal to originals?

Yes, a great campaign to educate your client on the benefits of your product and service can work wonders. Making sure that your USP is communicated clearly and being sure that your customer understands it. Also providing a clear guarantee that sets you apart from the competition.

Do they have a hope at all other than reducing price?

Yes, selling value. How much better is your product over the competitons refills. Can you prove it and can you clearly communicate it so that you are effective at reaching your customers.

Is it a waste of time giving these business people incentives and discounts?

No it's not a waste of time. Incentives can help but I've found presenting your discounts the wrong way can hurt the value you are trying to communicate about your product so be careful in how you use discounts.

Will they be loyal at all?

Yes, they will when they see the real benefits of working with your organization.

ANy learning from other markets or categories where consummables and spares are available at cheaper prices?

In more businesses than you can imagine there are spares and cheaper alternatives but again communicating clearly about the benefits should challenge your customers who are leaving for cheaper and maybe more inferior refills. What do you know about the inferiority of the alternatives? And how much do you know about the superiority of your product? Write these down and communicate these in some type of cut sheet or use this knowledge in your one on one communications with the client when they are purchasing.

What are the triggers for the SME's is it only price or can they be tempted with promotions and programs etc?

Yes. Everyone who buys can be influenced by promotions but what will you offer that will make them focus more on what you are doing for them than what your competition is doing for them. Be clear about the "what's in it for them".

Does fear and bad consequence as a strategy work? Fear can work but it can also back fire. The best thing to continue to explain are the benefits over the problems and that using inferior refills may bring bad results.

What should the company do for the long term?

Focus on providing clear communication on the value of your product and your service. Back up everything you proclaim you are going to do for them. Share the testimonials of other major users and their satisfaction achieved by using your product. & Love your customers by serving them passionately in every area of need that they have as it pertains to your products and services.

Is this business similar to say toothbrushrefills for Oral-B /blades for Mach3 etc ?

Yes it is but try applying some of the suggestions above and see what the overall results are. Is there anything else I can do for you?

Your Servant, Deremiah, *CPE