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How to simplify product comparisons - explained through an e-bike example

How to simplify product comparisons - explained through an e-bike example
5:30

In today’s world, things are moving at record speed, and it may seem that the lowest-priced products are the most attractive. With cost-consciousness often at the heart of business decisions, it’s no surprise that chasing savings can become a company’s main focus. From a standards and certifications perspective, Fabio Polo, Head of Strategic Product Management in our Cooling and Heating business, will explain how this approach can impact a company’s offering – and perhaps leave customers dissatisfied with what they have bought.

 

Third-party certification provides customers with an understanding of a product’s value, and since certifications are harmonised across countries, they facilitate global trade. To have products certified by a third party, extensive testing is required to demonstrate compliance with regulations. This process is often complex and demands both time and resources. Access to laboratory facilities can be crucial, as certification also is a commitment to future audits to ensure continued compliance. 

Fabio previously wrote the blog post Standards and certifications create significant customer value, where he discussed the above and explained the added value brought by certifications. In this blog post, he takes another angle to explaining the topic and describes the challenges of comparing certified products with non-certified ones.

Selected components become a finished product

If a company does not certify or test its products, then it must rely on the information provided by component manufacturers. Hence, no comprehensive data on the finished product’s quality and performance exists - at best, a sum of each individual component is available based on pure sum or experience inside the company.

Consider, for example, purchasing a new electric bicycle. The frame manufacturer assembles a complete bike by sourcing the necessary parts from external suppliers. They buy the gears from one company, the battery from another, and follow this approach for all required components. After mounting the brakes, gears, tires and battery onto the frame, it begins to resemble a bike. Each component follows industry standards as a minimum requirement, but the same component can perform very differently depending on how it is assembled into a whole.

The sum of all components

So, what is the actual performance of this electric bicycle? Even if the individual components are of the highest quality, it is difficult to predict how they will function together once assembled. The logical step is to conduct tests to ensure performance and capacity, exposing the bike to real-world conditions such as uphill climbs, downhill descents and braking scenarios. Not testing the bike would pose a risk and create uncertainty for the customer.

Consistency over time

A few years later, a satisfied customer returns to purchase another electric bicycle, an identical one, as the first one performed so well. However, a new challenge arises. The frame manufacturer still follows the same assembly process, but now sources brakes from a different supplier. Will this new e-bike truly be identical to the first one, or has the change in components altered its performance?

Testing that differentiates brands

Having access to a laboratory for in-house testing can make a significant difference. A laboratory allows for detailed, customised tests tailored to specific products and target audiences. For instance, tests could simulate how an e-bike performs when carrying heavy loads, or how it handles sharp turns at high speeds.

Application to the HVAC industry

The e-bike example can be applied to the industry of ventilation, heating and cooling (HVAC). A single component in an HVAC unit can behave completely differently depending on what it is paired with, resulting in varying performance levels. For example, a fan’s performance is entirely dependent on how it is installed, two different installation methods can produce two different outcomes. The same applies to the refrigerant circuit, where performance is influenced by pipe layout and refrigerant distribution. This demonstrates that performance is never just the sum of its components.

Using third-party certification also allows for long-term quality assurance. It is common for components to be replaced over time for various reasons, and regular audits then help ensure that the same performance can still be guaranteed. If the performance does not meet the original standards, this is identified, and adjustments must be made to maintain the promised performance levels.

If one supplier provides third-party certified products and another does not, it becomes difficult to compare their offerings. Even if we assume that all suppliers are completely honest, achieving the same level of assurance without third-party certifications, laboratory testing and periodic inspections is nearly impossible.

Certification is an affordable security

Choosing not to invest in a product, such as in quality assurance and certifications, may seem like a cost-saving decision at the time of manufacturing. However, it can turn out to be an expensive approach in the long run as finished products then have to be identical in component sourcing and assembly. Third-party certifications serve as a helpful guide to make it less complex for customers to compare products.

Learn more about standards and certifications in Fabio’s previous blog post, Standards and certifications create significant customer value.