So it's official, the recession is finally over. Although not quite out of the woods, we are undoubtedly in a better place than we were a few months ago. We all know that the fragile market conditions won't disappear overnight but there is more than a glimmer of optimism in the air.
One thing that won't be changing anytime soon, however, is the newly-found confidence of the customer with cash to spend. No customer wants to, or should have to, settle for a second-rate service or product, but this new breed of confident consumer is ultra-demanding. They want it all - with bells and knobs on - at the lowest possible price. Whatever happened to the 'cheapest and best doesn't come in the same basket' theory?
At Modo, we've noticed subtle changes. For example, this newly-found confidence sees the client dictate how the design process should be. Whereas a year ago, they would ask if we offered a measuring service, now they're barely through the showroom door when they demand to know when we are going to measure up.
These clients like to keep it lean - they are intent on getting what they want for less than before. Negotiations can be intense. Once they've pinned down the price, they look for the complimentary extras - even if it comes down to throwing something in like a waste bin, cutlery sorter or telescopic runners.
The name of the game is making that money go further. Why not, we know they have money - they know that we know - and so the games begin.
In a
recent kbbreview blog, Tim Foley hilariously profiled two types of customers - the 'skiers' who are Spending the Kid's Inheritance and the 'scrappers' who Surf, Compare, Research and Purchase. Yes, we've spotted them too and they can be equally demanding.
So what has Modo done to accommodate this increasingly demanding client? Across the board, we've focused on adding value and one of the first steps we took during the recession was to stop charging for our designs. Was it an easy decision to make? No, but we had to listen to what our customers were saying - "you've not even done anything yet... why should we pay for the designs?" or "the showroom round the corner doesn't charge", were common complaints. The recession has meant that every little helps and customers are happy to shop around to save a few extra pounds.
No matter how good you are - unless you are a firmly established, recognised brand - there will always be somewhere else that offers a similar product and level of service, without the extra charge for design. Until charging is standard across the industry, it is very hard to introduce, particularly if you are a young business like Modo.
If everyone charged, then it would become the norm and we wouldn't face the competition at that very first hurdle. Whether we are out of the recession or not, those green shoots are delicate and I don't think we will be charging for designs any day soon.
I'm keeping open-minded though, as they say, 'never say never'...
