Thursday, October 13, 2011

Thoughts on Pricing

Last week, I had a very interesting conversation with a good customer of mine, who happens to be a teacher of small business at a couple of local schools. What started out as just small talk, ended up being a discussion of the pricing of our products and services, pricing in general, and the effect that the big box stores (those discount and warehouse stores) are having on small and micro-sized business.

It was both our thinking that the big box stores are killing small business. While they are free to do whatever they want to, the fact that they deal in volume and can offset their low pricing by also selling dog food and pizza, something that small business cannot do, means that small and micro-sized businesses cannot compete on price alone and are at a severe disadvantage. And in today's economy, factors such as quality work, where the work is being completed, who is doing the work, etc. take a second seat to price.

An example: in the town of Yelm, Wa, small business was everywhere. It seemed that most people either owned and worked in a small business, or knew someone who did. That community, like so many others throughout the nation, was built and survived through the efforts of their residents. Then the big discount store moved in (name withheld) and local business shriveled. No longer does the general store exist, or the neighborhood pharmacy. Most of those small business were forced to close down because they could not compete with you know who because of their pricing.

In the conversation I was having with my customer, he turned me on to some thoughts by John Ruskin, 19th century essayist, artist, and political economist, on the issue of low prices. His beliefs are this:

"It's unwise to pay too much, but it's also unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the things it was bought to do. The common law of business balance prohibits paying a little and getting a lot - it can't be done. If you deal with the lower bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better."

So what is the takeaway here? I leave that up to you to discern, but I will tell you this: our products on a quality and service level are competitively priced. If you find someone cheaper to transfer your film, understand that there is a reason why they are cheaper. First, inferior quality. Second, they're probably sending the film to Mexico. Third, it takes 2-3 times as long to get your film back. And lastly, the chances of your film being lost in transit is greatly increased (see this blog posting "Don't Let Them Lose Your Stuff").

In closing, we want you to rest assured that here at McKenna Video & Photo, we treat every project as if it were our own. Your film, your videotapes, your photographs and slides, are treated with the utmost respect. Don't let someone elses artificially low prices undly sway you  to their doors. Visit us and see what we can do for you.

Blessings,

Chris.

Tuesday, October 4, 2011

Helping Hand House (Non-Profit Video)

Greetings friends,

I hope that you are all well on this fine October afternoon. I know that I am!

Over this past summer, I had the privilege of working on a promotional video for a local non profit agency, Helping Hand House. Helping Hand House, based in Puyallup, WA, is determined to end family homelessness in Pierce County. They have a number of programs designed to help families in trouble, from emergency shelter to budget management and other life coaching classes.

Working on this video opened my eyes up to the problem of family homeless in Pierce County and I am proud to have been able to help them out, even if it is just a video. To learn more about HHH or to arrrange a financial donation, visit their website www.helpinghandhouse.org .

To learn more about how video can showcase your company or help your non profit organization, visit our website www.mckennavideo.com and please give us a call. In the mean time, enjoy the video.

Blessings,

Chris.