Monday, January 01, 2007

Local Monument Companies Are Defensive Regarding Online Competition


In reply to my thoughts on the impact of online competition on the local monument company, an individual who I will call Mr. Monroe, wrote his opinions that demonstrate the defensiveness of local monument companies in regard to online competition such as www.USAMonuments.com.

“It's not like shopping for a brand name product with a model number that is exactly the same no matter where it’s purchased from. You can even shop for a car much easier than you can for a monument.”

Actually, more and more auto dealers are using the Internet to provide prospective purchasers shop-from-home convenience. Consumers often shop locally and then purchase online or vice versa. There is plenty of business for different channels of distribution.

If a company has a high-quality Internet site, there is a high probability that the consumer will be satisfied with the final memorial product. Conversely, if a local monument company operates out of a shack, with a display of "me-too," same color samples and boring designs, and without a high-quality website, then there is a high probability that the consumer will not have a superior heirloom memorial when manufacturing is completed. Buyer beware!

“With so many varying degrees of workmanship not to mention the different names being used like *classic gray* that could mislead a consumer into thinking it's that common *Barre gray* seen throughout his cemetery until he notices that his gray is holding moisture and always looks damp with dark spots.”

Numerous online photos and granite samples are used by online sellers to effectively communicate to purchasers what they are buying. No responsible local or Internet-based company wants consumer complaints and no responsible company is going to intentionally mislead a consumer. We have numerous satisfied clients with a sampling of our wide variety of products shown on our website.

If anything, online sellers work harder to develop relationships as they do not have in-your-pocket relationships with local funeral homes who often receive kickbacks from monument companies. Online monument companies work independently of these home-town practices that cause prices to be higher than necessary.

Communication is critical and online marketing, if used wisely, is an excellent communication tool. Our company serves local, national and international markets that clue us into upcoming trends in other markets.

“I set a granite marker for an online company (I won't do it again) and the marker was Georgia gray with a flat carving filled with black litho. She told me she shopped around and the local companies were more expensive. I said to her they probably wouldn't have been more expensive if they understood what they were quoting against. You thought you saved money, but this online company cut corners to save itself money and appear more competitive. It wasn't an apples vs. apples comparison. To me, shopping online for a monument is much like opening a box of Cracker Jacks - you never know what you are going to get.”

Mr. Monroe, you won’t receive an argument from me regarding the importance of comparison shopping. Poor workmanship is not unique to any one facet of the industry; however, you overstate your case by comparing online sellers to opening a box of Cracker Jacks.

If you were truly consumer focused, you would install monuments for out-of-state companies as that would best serve the needs of the folks whom you serve. You are in a service industry and you should never forget that important fact.

Actually, high-quality online sellers provide detailed designs before manufacture, and photos of the finished product before the manufactured goods are shipped, so the consumer is assured of satisfaction before making final payment.

I would argue that the entire monument industry has serious problems in quality control, especially in the installation phase of monument construction.

“The begging question remains, who is more likely to stand behind their product and replace it if necessary, the local business with word of mouth reputation at stake? Or the out of state online company?”

Online companies are increasingly your local competitor who adopts a consumer orientation. An online competitor with ample photos of products they have actually produced assures the public that the company is one of substance. Unfortunately, no company can guarantee 100% satisfaction 100% of the time. Sadly, there are folks in this world who are impossible to please. We have all had negative experiences with this sort of personality.

I predict a continuing blending between store-front and online advertising as the business model that most merchants will follow. I have observed lots of shoddy workmanship by store-front businesses and the superior craftsmanship of products shown online has opened opportunities for interstate marketing for local mom-and-pop businesses.

I invite anyone to deny that you can visit most cemeteries where you will readily see a wide assortment of monuments improperly installed, wretchedly designed and poorly manufactured by local monument companies.

There have been numerous examples of serious problems in the death-care industry where local companies took the money and did not produce as they promised. The public cannot be fooled as they have seen for themselves that many problems show up after the local monument company has gone out of business due to poor quality control, financial mismanagement, poor health or death of the owner, et cetera.

Long ago, Henry Ford, with inadequate competition, spoke words to the effect that the consumer could have any color they wanted as long as it was black. The U.S. monument industry continues to resist change and for too long offered the public its choices of gray granite when the consumer wanted greater variety of colors and styles.

Eventually, the public looked for alternatives outside the neighborhood market as the local monument company was slow to meet the changing demands of its market. If you fail to satisfy your market, you will lose market share, and that is a lesson for all businesses, regardless of the industry in which they compete. The Internet is a great place to shop and buy and will continue to impact local monument companies that fail to adapt to change. Adapt or die is my motto!

Burton Fletcher
www.USAMonuments.com
Burton@USAMonuments.com

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