A Totally New Perspective to look at Pricing

THE HIGH PRICE STORY

Don’t Read this, if you’ve been thirsty on a flight!

When a company which is known for its automation solutions across the world sells them in the Indian markets, it has its own challenges. Fanuc is known for its amazing skills of building systems that automate difficult jobs. They are the best when it comes to performance. Now they have to sell in the Indian markets where cost matters and takes a precedence over performance when it comes to the buying decision.

Fanuc understands that the technology it has crafted cannot be devalued and it also understands that Indians won’t buy the most advanced machinery unless they see that it is giving them a cost benefit over the other alternatives.

Here comes the deep meditation part.

If Fanuc positions itself against the automation companies from India and China it will lose on the price front.
So what does it do?

We found the answer at IMTEX 2017.

Fanuc’s stall had some marvelous pieces of advanced robotics at work. They had 3D robots which were sorting, loading, picking, packing-doing all the operations a manufacturing facility can possibly have.

That was not the best part.

The best part was that each exhibit had a board displaying the operating cost that it comes with.
It was just 5-7 Rs/ Hour/Job for such high-end technology.
This was Fanuc’s answer to the positioning puzzle.
Fanuc didn’t compete against the other manufacturers. Instead, they went a step ahead.
They competed against the manual labor which might come cheap but brings add on costs of errors, policy issue, and other problems.

Fanuc used communication to stay ahead of the customers’ thought process.

who is your competition? Know it.
You will be compared. Accept it.
Your customers are humans, they will get confused. Prepare for it.

They will look for things you might not be the best to deliver.
Give them a perspective.

The boards with operating costs alongside Fanuc’s hi-tech robots were making the visitors at IMTEX think: “Yes this is the best technology but moreover now it’s affordable. Now I can buy it.”
We could read it in the eyes of the visitors.
Fanuc had risen above the petty competition and incorrect comparisons just by shifting the paradigm of customers’ thinking.