Analysis - Scan: Low prices but at what cost?

[HEXUS]

Scan director Elan Raja talks to HEXUS.channel about the growing threat to the UK technology market of ?The EDI boys?.

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[Jay]

small mistake

Initially we wanted to know why Scan is bucking the trend of traditional bricks-and-mortar retailers moving online by opening a physical store of its own. However, conversation soon turned turned to the tech industry in the UK as a whole and what Raja views as one of its most significant threats.

Even when other places are cheaper eg Overclockers I still buy from Scan becuase I know I am not just paying for the product but also the aftercare and support they provide. For me its worth the few extra pounds, but to be honest Scan are normally cheaper then every other retailer anyway.

[Scott B]

Thanks, could've sworn I deleted that

[TAKTAK]

Yup, i'm with Jay on this one

i'm quite happy to pay a premium (all be-it a very small premium if one at all)

the service that i have had from SCAN is second to none, i have messed up every orer that i have made and SCAN have sorted it quickly and efficiently .. now... had i messed orders up with other companies (and i have ) they aren't so quick to respond and often don't respond at all until it is too late... meaning longer without the needed items

so yeah... other places MAY be cheaper... but from what i have experienced.. their support compared with SCAN is atrocious, SCAN just seem to be leading the pack CS wise.. hence why i praised them in the Custom PC survey and the PCpro one too

[s_kinton]

Provided Scan continues its current trend of competitive prices, free shipping and leading customer service their business will continue to grow.

As above, even if items are a few £s more expensive at Scan, its well spent for piece of mind.

[joe pineapples]

I've bought a fair bit from Scan in the past, and to be honest, never had to test their customer service, through a faulty product. But from others experience, i'm pretty sure i'm in safe hands if needed. Scan are not always the cheapest, but neither are they a fly-by-night company. Getting the balance right between quality AND service, is the most important thing for many. Thats why i dont personally see this as a threat.

[Mutley]

I think its about differentiation. You have to provide a reason for customers to buy from you, and keep buying from you. In the current age of on-line retailing, driving prices continuously down, I think (at least for me) that differentiator is customer service.

Anybody can sell stuff cheap on line. Not many are able to handle the complete sales cycle, that is that part when something goes wrong, which it inevitably will. Many customers are prepared to pay a bit extra if a retailer takes the stress out of purchasing, by providing some assurance that in the event of a problem, the issue will be dealt with fairly and promptly.

In my experience, Scan have done this well. I think the fact they open themselves to this very forum, and always respond is a mark of that. Their challenge is going to be to keep that focus as they grow, and ensure that as they employ more staff, they understand that too.

[gazza.ladra]

Originally Posted by Mutley

I think its about differentiation. You have to provide a reason for customers to buy from you, and keep buying from you. In the current age of on-line retailing, driving prices continuously down, I think (at least for me) that differentiator is customer service.

Anybody can sell stuff cheap on line. Not many are able to handle the complete sales cycle, that is that part when something goes wrong, which it inevitably will. Many customers are prepared to pay a bit extra if a retailer takes the stress out of purchasing, by providing some assurance that in the event of a problem, the issue will be dealt with fairly and promptly.

In my experience, Scan have done this well. I think the fact they open themselves to this very forum, and always respond is a mark of that. Their challenge is going to be to keep that focus as they grow, and ensure that as they employ more staff, they understand that too.

i couldnt agree more!