Antics with semantics: what do we mean by 'value'?
The PMV industry is a very broad stable, but if there’s a common theme that runs throughout all of its branches, it’s probably that of ‘value’. Everybody’s talking about it, from international equipment manufacturers, to the Middle East’s dealers and distributors, to the purchase managers of contractors and logistics outfits.
In truth, it’s not especially surprising to hear manufacturers and their channel partners evangelising about the value offered by their products. That, after all, is their job. What is surprising is that despite the more-than-liberal use of this term across the industry, everybody seems to be using it to describe different things.
Value is being used ubiquitously, yet the products to which the term is being applied are often fundamentally different from one another. Even those that perform the same functions are frequently intended for opposite ends of the market.
Consider, if you will, the manufacturers and suppliers that are delivering top-quality products to the market, but with premium prices. These firms are keen to play down the initial outlay of their machines or vehicles, preferring instead to concentrate on the longer-term value delivered through total cost of ownership (TCO).
Conversely, there are those working to convince the Gulf’s end users to place their trust in brands and products that are relative newcomers to the market, focusing on the up-front value represented by tantalising price tags.
Of course, there’s no great mystery to this semantic promiscuity. Value is a relative term used to describe something that offers the maximum return on investment. What is interesting, however, is the fact that the term ‘value’ is not universally favoured in other, closely-related fields.
Take, for example, the automotive industry. Sure, this sector is awash with manufacturers and dealers that are perfectly comfortable using the word ‘value’ to describe their products. Nevertheless, this sense of ease does not apply across the board. It’s difficult to imagine a purveyor of luxury sports cars discussing the value for money offered by his or her vehicles. Let’s face it, you’re hardly likely to see the word ‘bargain’ slapped across the front of a Porsche billboard anytime soon.
No, premium car manufacturers and their dealers are willing to concede that their prices are higher than most, but that’s because the automotive industry can afford to be elitist; these are products for aspirational consumers.
The only way in which fields such as plant, machinery, and commercial vehicles could be considered aspirational is in the sense that everybody involved aspires to make money. Granted, some fleet owners have the ready capital to buy premium brands, whereas others do not.
That’s not to say, however, that contractors with deep pockets will spend extra money simply to look better than their competitors. Plants, machines, and commercial vehicles are tools; every acquisition must make sense within the context of the buyer’s – or renter’s – bottom line.
Put simply, it doesn’t matter whether you’re the owner of a contracting startup or purchase manager for a multimillion-dollar logistics firm; if you’re an equipment buyer in the Middle East, you’re searching for value. What’s more, if you have an aptitude for spotting the products that are right for your applications, you might soon be able to afford that Carrera.
Antics with semantics: what do we mean by ‘value’?
The term 'value' seems to be ubiquitous within the GCC's equipment community, so why not in other sectors?
The PMV industry is a very broad stable, but if there’s a common theme that runs throughout all of its branches, it’s probably that of ‘value’. Everybody’s talking about it, from international equipment manufacturers, to the Middle East’s dealers and distributors, to the purchase managers of contractors and logistics outfits.
In truth, it’s not especially surprising to hear manufacturers and their channel partners evangelising about the value offered by their products. That, after all, is their job. What is surprising is that despite the more-than-liberal use of this term across the industry, everybody seems to be using it to describe different things.
Value is being used ubiquitously, yet the products to which the term is being applied are often fundamentally different from one another. Even those that perform the same functions are frequently intended for opposite ends of the market.
Consider, if you will, the manufacturers and suppliers that are delivering top-quality products to the market, but with premium prices. These firms are keen to play down the initial outlay of their machines or vehicles, preferring instead to concentrate on the longer-term value delivered through total cost of ownership (TCO).
Conversely, there are those working to convince the Gulf’s end users to place their trust in brands and products that are relative newcomers to the market, focusing on the up-front value represented by tantalising price tags.
Of course, there’s no great mystery to this semantic promiscuity. Value is a relative term used to describe something that offers the maximum return on investment. What is interesting, however, is the fact that the term ‘value’ is not universally favoured in other, closely-related fields.
Take, for example, the automotive industry. Sure, this sector is awash with manufacturers and dealers that are perfectly comfortable using the word ‘value’ to describe their products. Nevertheless, this sense of ease does not apply across the board. It’s difficult to imagine a purveyor of luxury sports cars discussing the value for money offered by his or her vehicles. Let’s face it, you’re hardly likely to see the word ‘bargain’ slapped across the front of a Porsche billboard anytime soon.
No, premium car manufacturers and their dealers are willing to concede that their prices are higher than most, but that’s because the automotive industry can afford to be elitist; these are products for aspirational consumers.
The only way in which fields such as plant, machinery, and commercial vehicles could be considered aspirational is in the sense that everybody involved aspires to make money. Granted, some fleet owners have the ready capital to buy premium brands, whereas others do not.
That’s not to say, however, that contractors with deep pockets will spend extra money simply to look better than their competitors. Plants, machines, and commercial vehicles are tools; every acquisition must make sense within the context of the buyer’s – or renter’s – bottom line.
Put simply, it doesn’t matter whether you’re the owner of a contracting startup or purchase manager for a multimillion-dollar logistics firm; if you’re an equipment buyer in the Middle East, you’re searching for value. What’s more, if you have an aptitude for spotting the products that are right for your applications, you might soon be able to afford that Carrera.
PMV roundtable: effective fleet management