Sunday, June 3, 2012

Money on the Table


Thanks to our most active spring yet, it has been a few months since I put up a post. We have been busy in North Dakota, Montana, Colorado, New Mexico, and California. As people hear of us, learn what we can do and compare our advanced wastewater treatment systems to competing systems, they recognize that Eliminite is the best onsite system available for their money.

Last week we installed an Eliminite system at a college in a scenic mountain community in Colorado. Due to the general contractor’s tight deadline for completion, we started the Eliminite installation on a Friday afternoon and, by midday the next day, the system was completed, tested, and switched into automatic mode. The layout was one of our standard C-Series, the same design that is now being copied by other manufacturers. I guess we should have guessed that would happen since, for our clients’ convenience, we posted detailed technical drawings of our firm’s design online, and our Google Analytics showed that our competitors were accessing our site regularly around the time the copy-cat behavior began. In fact, one of the copy-cats bid this job originally, but ultimately lost it to us. Interestingly, once the job was complete, we were told by several professionals associated with the job that we “left too much money on the table.”

Apparently, Eliminite ended up at half the cost of the competing technology; for an advanced onsite wastewater treatment system of this size, half represents a significant amount of money. However, the suggestion that we somehow inadvertently “left money on the table” is incorrect.

We were provided specifications for the job and gave the owner a fair price for a reliable wastewater treatment system, without regard for what we thought our competition might have bid, or how much money the school might be able to scrape together to sink into their onsite system. Our firm doesn’t play those all-too-common “bidding games”, partly because (take note, competitors) manipulative bidding practices and price-fixing based on competitors’ pricing is ILLEGAL, but mostly because we believe that offering a high quality product for a fair price is the better long-term business model, and is the primary reason Eliminite has enjoyed consistent growth, even during this economic downturn. The project engineer for the college was protecting his client’s interests by looking beyond fancy marketing schemes and flashy brochures for a system that would match the needs of the school.

That is an important consideration that is often ignored in the engineering community. Aggressive marketing campaigns, overly-attentive distributors (you know, the kind who “drop in” every few weeks to remind engineers not to consider competing technologies, and to drop off another $500 stack of brochures for the engineers to distribute to clients) require an enormous investment by the manufacturer; costs associated with marketing and advertising and multiple middlemen are necessarily passed along to consumers. So, it’s fair to say, the cost of a treatment technology rises proportionately with the costs of marketing; instead of paying more for a better treatment technology, consumers end up paying more for a better marketing campaign.

Unfortunately, shiny binders and frequent visits to engineering firms won’t help ensure consistent compliance with permit requirements and, contrary to popular belief, slick marketing does not always translate into better business practices, better products, or better product support. Anyone out there remember the supremely well-marketed Ford Pinto? And how about those really cool magnetic bracelets that are supposed to cure almost every ailment? And last, but not least, how about Facebook stock? Millions in advertising for products that just plain failed to live up to the marketing hype. I’m not saying competing wastewater technologies that are well-marketed are all junk, I’m just suggesting that the wide-eyed adoration I’ve witnessed from certain members of the onsite wastewater treatment community toward manufacturers who “have great marketing” (I hear this constantly) might be misplaced, and certainly shouldn’t result in the irrational, single-track thinking and single-brand loyalty that characterizes this field…ESPECIALLY when consumers trust their engineers to inform them about ALL of their treatment options, not just the one the engineer happens to think of first because that brand’s vendor bought him lunch last week or flew him out to visit their plant and play a couple rounds of golf.

Remember, in the end, the consumer pays for those lunches and “free” plant visits and classes and marketing materials, and, when those activities are taking place across the entire country, you can imagine how quickly those costs add up. That said, Eliminite staff is always happy to offer classes or take interested wastewater professionals out for lunch—we’re just more selective about where and when we participate in those activities, because we understand that consumers can’t always afford to pay the extra costs.

If you, as the client, need an advanced wastewater treatment system for your home, business or other facility, and you have not been informed that Eliminite is one of your options, you can be sure nobody is going to leave too much money on YOUR table at the end of the day.

I really want to put some photos of the system up but every time I show detailed photos, the competition comes out with a new model based on our design (not kidding). If you contact me, I will share the photos with you and answer any questions you may have about our engineering services and wastewater treatment products.

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