SCAN: Low prices but at what cost?

by Scott Bicheno on 30 July 2008, 14:41

Tags: SCAN

The price is right

At the official opening of SCAN’s new retail store at its HQ in Bolton, HEXUS.channel spoke to SCAN director of operations Elan Raja.

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 to the tech industry in the UK as a whole and what Raja views as one of its most significant threats.

The phenomenon in question is, as Raja puts it, "The EDI boys". EDI stands for Electronic Data Interface and refers to the facility for pretty much anyone to set up a web shop using a data feed directly from a supplier or distributor.

While there's no reason to deny anyone access to the tech etailing market, the only way these new entrants can compete is on price. Using a technique called 'spidering' they can automatically monitor everyone else's prices and adjust their own automatically.

Again you might think "what's wrong with that?" But the likely consequence of it is an exaggerated emphasis on low prices to the detriment of customer service, post sales support and overall quality.

In an exclusive HEXUS.tv interview, Raja tells HEXUS.channel about this phenomenon and why SCAN believes it’s possible to be price competitive and still add value to the customer.

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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.

Thanks, could've sworn I deleted that:rolleyes:

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 :D) 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 :)

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.

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.

SCAN: Low prices but at what cost?

The price is right

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