This article is unashamedly written from the perspective of the smaller company, however the opinions expressed are heartfelt and sincere. The thrust of the article is that in general, smaller conservatory companies are more efficient, cost effective and are capable of producing better and more individual work than their larger competitors.
It might sound like sour grapes for a smaller operator to criticize his larger competitors on the basis of their size, surely any small business should aspire to be a large one?
This is not always the case, the constant drive to greater turnover and profits is not inevitable. Factors such as job satisfaction, work-life balance, and the desire to create happy customers all come into play.
If we cast aside intangible human factors, surely large firms will have the advantage in term of economies of scale? This may be true if they are producing baked beans or homogenous building components such as steel beams or copper pipe, but for bespoke, individually designed and craftsmen built conservatories and orangeries, the smaller firm has the upper hand.
One reason for this is that the raw materials cost represent a relatively low proportion of the overall price. Even so, any possible advantage the larger firm has in terms of purchasing power is quite limited and arguably negative. Most building materials are bought from local suppliers; it is not efficient to transport ready-mix concrete or skips laden with rubble hundred of miles. Local merchants will stock local bricks that will match local houses.
By concentrating purchases with a handful of local merchants, better deals can be struck and discounts had than ordering a greater quantity of materials over a bigger area.
Most smaller firm tend to work in their local area, the larger firms often operate nationwide. Clearly this represent a logistical challenge, which may not always be successfully met, but will always incur additional costs.
A much bigger, and much more important, proportion of the build cost, is on-site labour. These are the people that turn the raw materials into a beautiful finished room, the end result relies on their competence, experience and diligence. This labour cost will be relatively similar regardless of the size of the firm, the main difference is that a firm operating over a larger area will incur additional costs in managing this labour.
It is here that the smaller firm has the big advantage. The smaller firm inevitably has a much flatter hierarchy than the larger, the people at the top may be in direct contact with the workers on site. The key decision makers may have intimate knowledge of each job and the power to effect changes to enhance the product to better suit an individual situation.
Clearly the smaller firm will require fewer personnel, it is easy to hand-pick a dozen skilled craftsmen than recruit a hundred. The hundred tradesmen employed by the larger firm will require a tier of managers/supervisors, all of whom need to be suitably capable, motivated and experienced. If these middle-managers (all of whom have to be paid for) are really that good, why aren’t they in higher positions or running their own firms?
Are you a name or a number? Do you want to call the boss directly on his mobile phone, or be bounced around various departments by ignorant and unhelpful telephonists?
Good customer service is not about going on training courses, adopting a lickspittle approach or addressing people Sir or Madam, it’s about common decency, respect and honesty. It’s about being upfront, returning phone calls and listening to customer’s individual needs.
Existing clients should receive the same level of service as potential ones. It is only natural for firms to woo potential customers with claims of great service, the key issue is whether these promises materialize once the commitment to buy has been made.
Astonishingly, some firms, often larger ones, treat potential customers with the utmost disrespect, indulging in high pressure sales tactics that insult the intelligence of even the most thick-skinned client. It does beg the question that if they treat you with such discourtesy when they are trying to win your business, what will they be like once they have done so?
Barings, Lehman Brothers, Enron, Woolworths, Northern Rock, MFI, XL Air.