Visualization Software - ROI?

  • Thread starter Thread starter Cliff Wilson
  • Start date Start date
Create a Post
C

Cliff Wilson

Guest
Ok, I've been testing the two most talked about visualization packages WIF, PIF.

It is time consuming and "fussy" to get things to look good. On another thread Jay wrote that grid lines on the table would be good as an example. I think, unfortunately, this could ADD to the shopping time.

Mike writes that it paid for itself many times over. So, How do you figure that?

Those of you that have it, did it "pay for itself?" How did you calculate that?

As a rough estimate, I figure I "recover" $100 per frame on any given investment on average. (Net excluding labor) This is my "top-of-the-head" ROI calculation. So, Let's say the software costs $2000 to install and get running. Equipment and everything. (Don't get picky with me, I know it could be a little less.) That means I need to sell 20 frames THAT I WOULD NOT HAVE SOLD to get a break even ROI. ??? Since it is not driving in new business, I am having trouble seeing this. (Maybe with some big ad campaign, but... "Come on in and let me fuss with my computer for you!" ... maybe the headline needs work ...)

On the other hand, let's say this let's me "upgrade" the sale. Let's guestimate that the "upsell" nets me $15 per frame. That means I need to upsell 134 frames to get to breakeven?!?!?

Although I can see some added shopping "gee-whiz" experience, I am having trouble seeing a reasonable ROI. So, how did you calculate the ROI?
 
Cliff,

Good questions. I am very interested in what answers are posted.

My only question is what is ROI?
 
Cliff,
I know we spoke about this already, but a couple of other things come to mind. It is not just your initial investment, you have updates, upgrades, annual support fees, etc... They may not be alot of money, but something to think about.

As we talked about, I think the key to making this kind of investment and upgrade in services work is to drive more traffic. The up-selling will be nice, but it is all about the customer traffic. You do this type of thing to gain customers, right? Of course over time word will get out that you have this cool new toy, but you need to get the word out fast and that will take additional investment in advertising. You need to turn this into a marketing advantage. (Why am I telling you this. You're going to steal my customers.)

I think this could be a good thing. Infact you got me thinking about doing this too, but can't justify the expense yet.

It would be interesting to see how others have gotten this off the ground.
 
I am also battling with this decision.

In theory, it sounds like a good way to help people make up their minds. But:

What happens when a customer really likes this toy and wants to see more frames using this tool? It will take longer, in this case, to make the sale.

And if there are other people waiting in line, (we never get one customer at a time it seems!), won't they walk away if the visualization makes them wait longer in line? In this case, we are losing a sale.

Yesterday I had a customer who looked at least 20 finished corner frames and took her 45 minutes to decide; I hate to think how many times and how long I'd have had to use "the Visualizer" with her!

For those who have this in place, what is their experience so far with the above scenario???
 
CLIFF: Mike writes that it paid for itself many times over. So, How do you figure that?

Those of you that have it, did it "pay for itself?" How did you calculate that?
Click to expand...
Hi

We have tried both PIF and WIF and found them both to be excellent products, with nearly identical features and benefits. We were an early adopter of this technology, and love it. We have had PIF live for nearly 6 months. We don't use it for every order, but for most. We have the technology integrated with our POS, and it keeps a visual record of the pieces and condition.

I think it's difficult to answer your question - from an accounting perspective. It's difficult to know how many may have walked without the benefit of this tool, how much faster it allows us to be, and everyones sales style / speed / presentation will vary. I'm certain that it has paid for itself several times over, but I cant assign a dollar figure to it. It's part of our normal sales routine now, and likely a competitive advantage.

In the first two days it definately saved multiple sales, greater than the value of the system, before we even had the camera mounted. (one person had their hand on the door) In those first days we also used it to email a client's husband 4 images, while she waited, for his opinion/approval. It was used that first week for a corporate project, turned sale. Many folks have come in to see it, based on advertising efforts - with items in hand. It's a keeper



PaulN: And if there are other people waiting in line, (we never get one customer at a time it seems!), won't they walk away if the visualization makes them wait longer in line? In this case, we are losing a sale.

Yesterday I had a customer who looked at least 20 finished corner frames and took her 45 minutes to decide; I hate to think how many times and how long I'd have had to use "the Visualizer" with her!

For those who have this in place, what is their experience so far with the above scenario???
Click to expand...
We lead the process and usually get them down to 4 or fewer choices before introducing this selling tool.

I think it makes the customer's decision making process easier and faster. Non visual folks (like myself) have a greater confidence in their decision, after the visual. Rather than having you flip flop the designs back and forth on the counter repeatedly, while they try to "visualize it" in their head, you can lay the samples on all 4 corners and present them with a side by side comparison - with just one photo. They'll usually point to the screen immediately and say "I like THAT one. How much will it cost?". We used to have customers ask to borrow a ladder or stool so they could stand above the counter and look down at the corner sample configurations around their art. This (liability) has also been eliminated.

The waiting customer will usually be captivated and may even participate or comment on the choices. If anything, it shortens their wait time.

I think every shop should have one of these tools, including the big boxes - and I bet they will soon. I highly recommend the technology!

Both companies have functioning demos that you can download or request by mail. You can try em in your shop without obligation and see for yourself.

I'm anxious to see what others have to say about this topic.

Mike
 
{ On the other hand, let's say this let's me "upgrade" the sale. Let's guestimate that the "upsell" nets me $15 per frame. That means I need to upsell 134 frames to get to breakeven?!?!? }
--------
I don't consider $15. and upgrade....what we are talking about here is a "significant" upgrade.
The customer comes in and says "i want just a cheap black frame"

..you have had this happen i am sure.
We show 4 designs one at a time one teh screen then show all four designs all together on the screen....
the cheap simple black metal right on the art looks "ok"- at say $110.,
the the next one is say a single mat the same black frame...still "ok"... at say $150.
next one a nicer look a double mat a little wider .... at say $175.00

Then you show a wider black more decorative frame ...pull out all the stops add nice fabric mat a fillet and a second mat....and it costs say $350 ....the the customer says " wow that looks so much nicer than the others"..."that is the one i will use !
This is all done before you give them the final price by the way.

Using this example and upselling you would sell just 8 frames.


These are NOT our frame or mat prices in this example..... but it is a real time scenario and food for thought
 
I see it this way - 10yrs ago POS became a "necessity" for a professional shop; 5 yrs ago the same thing happened with CMCs - now the same thing will probably happen with the Viz .

Yes there's an investment - camera, software, etc. I don't know if we'll double our money but I'm confident it will pay for itself in short order. But I can see the gee whiz factor helping spread the word about the shop. Making a client more comfortable in the buying decision; enhancing the "experience"; being able to make a visual record of the design and condition of the artwork; upselling desings - all factored into our decision to order WIF -

Tony
 
Originally posted by AWG:
...But I can see the gee whiz factor helping spread the word about the shop. Making a client more comfortable in the buying decision; enhancing the "experience"; being able to make a visual record of the design and condition of the artwork; upselling desings - all factored into our decision to order WIF...
Click to expand...
That's it Tony, exactly!

Our camera will not arrive until tomorrow, so we're probably not going to be up and running with this until next week sometime. But to help fuel that "Gee whiz" experience, we're going to market this capability into our cable TV ads....we'll see what happens.

John
 
I think Mike touched on a point that is one of the biggest attractions of this technology for me.
I have a number of corporate clients that want me to make some kinds of presentation, but they don't want to spend a whole bunch of time. Show them some designs and they'll sign off on one. Before this required making special samples, and either having the samples couriered to the client, or taking the time to meet with them (which is problematic at best). The imaging software really helps to streamline the process.

I also work with designers and they typically drop something off and tell me to get back with them when I have the designs picked out...you can see where this goes.

I think that once the learning curve is complete, the visualization software will be very helpful, and will help to expedite my dealing with these kinds of clients. My ROI will be in the form of time as in Minutes/$ profit.

Maybe the business will increase with increased production capabilities, maybe I'll have more time to fish.
 
"So, how did you calculate the ROI?"

I would think you could do that the same way you would calculate the ROI when you cover your pegboard with felt and quit balancing corner samples on golf tees. How would you quantify that?

BTW this isn't totally fiction. There is a shop here that still does exactly that. No I'm not joking.

A long time ago Bob C mentioned how customers must have a “positive shopping experience.” Any tally mark in the “positive” category can’t hurt. Don’t fool yourself for a second and think that customers don’t leave with a few tallies in the “negative” column.

Setting the paying customer’s mind at ease on a $500 frame job is really the least we could do. You might just sir up enough attention that the customer tells a friend or two about this neat software in this frame shop down the street. How cool would that be? How you quantify that?
 
Originally posted by Cliff Wilson:
..Those of you that have it, did it "pay for itself?" How did you calculate that?
Click to expand...
That's hard.

It has to be an optimistic guess, I guess, but I guess mine is paid for now. Yesterday a lady brought in one small document to reframe, asking for a discount because she had "lots more where this one came from" to be reframed. I said no' she said "well, let's look anyway". I knew she was trying to pick my frame designer's brain.

We went through the design process and she was unsure about the mat width & colors. I showed her the image on the screen and her eyes lit up. She immediately decided which selection she preferred, and the order was placed.

As I prepared the paperwork she said "Wait a minute, I have to go to the car". About half an hour later she paid a deposit of $780 on nine reframing jobs instead of one. That cheap customer paid more than $160 per frame, no more questions asked.

Today another lady came in asking for "just an estimate today", obviously shopping around. My guess is she's already been to M, JA and HL down the street. She saw the choices on the table and looked overwhelmed (again?) She saw it on the screen and placed the order. It is a $720 order for framing her wedding Ketubah, and she paid in full up front. Customers don't do that unless they're confident of the results to come.
 
Ok, so maybe I answered my own question today.

Was spending a looonnnggg time with this customer trying to explain the differnece between a v-groove and an open v-groove on this three piece multi-opening grouping she wanted done. I couldn't do it. She just wasn't getting it. (I have v-groove examples, but no open v-grooves.)

Then I remembered I had the wizard design software installed on my POS this week. (another test I am doing) So, I design it up both ways, bring her around the counter and BAM I'm done with design. Now she says ... wait for it ... "Can I see the real colors?"

yep, no foolin'! Is that a sign or what? So Wiz, can I do multi-openings with this thing?
 
So Wiz, can I do multi-openings with this thing?
Click to expand...
Almost.. I'm working on that up right now. Its a matter of simplicity versus full-featuredness in the user interface, and for WIF I'm leaning towards the former.

And I should mention too that the shop that I work at on Saturdays should finally have a camera system up and running this weekend. I already have a customer from last weekend coming back tomorrow so she can visualize her $800+ order with her husband. I think it'll be an easy sale.
 
Create a Post
Back
Top