Friday, December 11, 2009

THERE IS A DIFFERENCE BETWEEN PPE "ADDED VALUE" AND "VALUE ADDED"

"Added Value" and "Value Added" are two marketing terms that mean different things but are frequently used interchangeably. While you can probably get various definitions for each term, a good way to keep it straight in your mind is to remember that "added value" relates to products and "value added" relates to intangible services.

Consider head protection products for example. Most hard hats on the market come to you unassembled. You have to install the suspension system. But the leading quality brand comes from the factory full assembled, ready to wear. That is added value. It may not seem like a big deal until you look a little deeper.

Studies show that it takes the average employee about 10 minutes to open the bag, read the instructions, and assemble a hard hat. If that employee makes $20.00 an hour, assembling his head protection costs the company about $3.50. Plus the value of 10 minutes of non-productive downtime while he is doing it. That usually wipes out any purchase price differential between the lower priced hat and the quality brand.

More importantly, the leading quality brand protective caps are fully assembled at the factory by trained, experienced experts. Following assembly, the caps are inspected by Quality Assurance Experts to ensure they come to you assembled correctly. Failure to install the suspension/Impact Energy Control System correctly and firmly can adversely affect its impact attenuation capability. If your employees assemble their head protection, how do you know they did it right? Who inspects them? Who is knowledgeable enough to recognize that a suspension leg is not seated fully in the shell? Aren't you taking a risk you don't have to take?

If you purchase any brand of head protection, the ANSI Standard  requires it to be adjustable to size and you expect it to be reasonably comfortable to wear. The leading quality brand goes far beyond what is required and expected. In addition to the sizing adjustment, the quality brands headband can be raised, lowered, tilted and moved front to back so that the wearer can select an exact, personal fit and feel. That is added value.

A protective cap headband is the only part of the device that comes in contact with the body. As such, it gets dirty and smelly over time. Most economy class caps have only a partial headband that is the sewn in and cannot be removed for cleaning or replacement.  The quality brands full headband can be easily removed and replaced. Plus you have a choice of materials and styles. All of which is added value.

Versatility and accessories are also "added value" factors. The leading brand of head protection can be combined with welding helmets, faceshields, safety masks and goggles two different ways, neither of which requires hazardous mounting slots in the caps. That extends the number of applications it can be used in and eliminates having to stock different caps for different jobs. That is added value. Accessories such as winter liners and sun shields add an extra margin of protection which is also added value.

These are just examples of added value in one product line. The same type of things are present in most PPE products. The same holds true with "value added". A prior post talked about the "intangibles" that should accompany any PPE brand you select. There is a vast difference between the value added services among brands and manufacturers. Lesser brands sales reps talk about providing what you are already using cheaper. The leading brands sales reps talk about products that can help you do your job better and safer. That is value added.

Studies have shown that a leading quality brands sales rep accounts for about 40% of the total value added with the brand. Most brands reps spend their time with you talking about prices, discounts and deals. A quality brands rep becomes a part of your PPE decision making team. They provide information, knowledge and ideas before, during and after the sale. They assist with hazard analysis, they do training. That is value added.

The leading brands utilize the best distributors;  have the best marketing programs and customer service departments. None of which they have to do. That is value added.

Anything the leading quality brand provides, that is not required or available in other brands, is either an "added value" or "value added". You owe it to yourself to demand both from your PPE supplier.

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