We have systematically shared articles about the value of the iTruColor and now we want to tell a real case about a brand chain repair shop.
In a city in Europe, around six months ago, there are three main iPhone parts wholesale brand chain repair shops, A, B, and C. Their business is similar, including mobile phone repair, phone & laptop accessories, and other services. All of them own 20-30 stores and each store can repair about 3 mobile phones per day. The difference between them is their business philosophy and products. A provides the most expensive products and services, of course, A also has better quality than B and C. And A pays much attention to advertising and marketing and has the most staff.
B and C have been competing with each other in price. Both of them consider that low price is the best way to attract customers, which leads to low profit and no money for advertising or marketing, and have no idea for the business.
But all changed from 4 months ago. B realized that the price competition is endless and he noticed A’s high gross profit. So he changed his mind and wanted to find a more competent iPhone parts wholesale supplier who supplies better quality than A, then he can be different with A and C, to accumulate customers by establishing a good reputation. Finally, B cooperated with iTruColor because it is the first high-end aftermarket iPhone parts wholesale supplier which is comparable to the original LCD, but with a much lower price. B got much good feedback from their customers and more and more new customers are being introduced. Each store of B can repair 4 mobile phones 3 months later, and it’s equivalent to an increase of 33% of the repair numbers. Although the purchasing price is a few euros more expensive than previous ordinary products, the labor fee income for each additional repair is ten times more at least. What surprised B even more is that there is more than 10% increase in accessories and other services due to an increase in customers.
In addition, we also learned about the situation of A and C.
A is the earliest company that paid attention to brand and quality, they invested most in advertising and marketing. A also has a QC team composed of 10 people who are responsible for the testing and picking of goods sent from Chinese suppliers. Good products are distributed to iPhone parts wholesale repair shops, and the staff in the repair shop have to test the LCD screen again before installation, also return the defective products to head office. They also have a team for RMA with 3 employees, they usually made mistakes in RMA process because there are many iPhone parts wholesale suppliers and several kinds of quality products. It is really not a small expense if you calculate the cost of QC and RMA. A do spend the highest cost in this market. They had to do that before because there are many homogeneous products in the market and hard to distinguish. Now the emergence of iTruColor has changed the original product landscape.
As the first high-end LCD, iTruColor has the same quality as original LCDs and is also with ultra-low defective rate. B only needs 1-2 staff for testing and RMA, It saves much internal cost, it also can save advertising costs with the accumulation of good reputations.
And we also learned that the intricate interests of company A make it couldn’t make a decisive decision, change suppliers, and lay off employees.
C is a typical company in iPhone parts wholesale aftermarket industry now, which can only attract customers by low price because they have no other competitiveness. Although some customers will choose them for the first time due to the low price, there will be no second time due to poor experience. C is good at finding low-price iPhone parts wholesale suppliers, the cost of purchasing C is indeed the lowest among them. Due to the high defective rate, even though they ignore the large amount of communication and labor costs consumed by RMA, they would still get more and more complaints, also higher and higher customer churn rate. What they may even haven’t noticed, a lower price actually means the highest cost. With the competitive pressure of B’s differentiated services, it is conceivable that the market share left for C will only be less and less…
Obviously, B enjoys the great value that iTruColor brings to him now. And because he was the first to act decisively.
Firstly, iTruColor helps you win customers with differentiation in competition, then accumulate more customers with good reputations and achieve an increase in total revenue.
Secondly, the unique value of iTruColor can provide differentiated value to your customers, which your competitors can not.
Thirdly, with the brand reputation guarantee of iTruColor, we can help you reduce transaction costs and avoid risks significantly.