How Armitage Group turned a commoditised product like LED Arrow Boards into a high value product that is good quality, readily available and reasonably affordable for the Traffic Management Industry.
There is an abundance of traffic management companies across Australia, who play an essential role in the control of the flow of traffic in the vicinity of road works, utility works, public events and construction. Operationally, comprising a dynamic mix of labour, static signage, communication and traffic advisory devices. To advise and control the behaviour of road users, mitigating or preventing risk to themselves or contractors who are in proximity to the flow of traffic.
Arrow boards form part of the suite of equipment that a traffic management company will have mounted on each of their team vehicles. Providing a non-verbal cue for road users to adjust their path of travel, according to the direction given by the traffic management operators. Now predominately LED based to provide visibility day or night, whilst having the longevity to operate continuously for extended periods.
The Good, Fast, Cheap Dilemma
Being such a commoditised product, what influences the buying decision for traffic management companies when acquiring these assets? It has been stated that managers often want products for their business that are good, fast, and cheap … however you can only choose two![1]Possibly … yet can we cater for all our customers’ needs?
Ready to be vehicle or static mounted 
Easy to use – in cab controller
Creating a High Value Product
Armitage Group was able to negotiate these several factors in the buying decision relating to LED Arrow Boards. Embracing innovative ways to address each of the criteria, so as to provide a product for traffic management companies that is readily available and covers functionality, quality, price and warranty. Turning a commoditised product into a high value product[2].
Good?
Granted, everyone likes a quality product. In particular something that will stand up to the environment it operates in for a reasonable life cycle, be reliable to avoid any interruption to the daily or nightly operations and meet or exceed standards for the class of product. Armitage Groups LED Arrow Boards include super bright LED technology rated to 100,000 hours at 625 candela units of luminosity, that is viewable up to 1200 metres away, complying with AS4192-2006.
Fast?
It is important to realise that although an arrow board may at first glance appear simple in nature, it comprises an assortment of technology to facilitate different signals, along with regulation of power, brightness and remote control functionality. Assembling these components together of course takes time, this is where Armitage Group has committed to pre-manufacturing and holding adequate stock, outpacing demand. Ensuring the arrow boards are readily available for traffic management companies, mitigating the dreaded stock lead time, with no delays apart from delivery logistics.
Cheap?
Price becomes a determinate quality at the point-of-selection[3]. In a world that is digitally connected via the internet, consumers’ price awareness of competitors products must be assumed. New to market customers may often start out with something cheap and functional to fulfil a certain need[4]. However, as they move up in frequency of provision and expand their workforce and fleet, quality and reliability become increasingly important factors in the buying process. To minimise disruption to operations and consequently cashflow. However, at the same time pricing should be competitive. Markedly, it is the value that is created through the consideration of all buying decision factors that eventually becomes holistically important.
The Value Proposition
Altogether, the considerations of functionality, quality, price and warranty, create an attractive value proposition for the customer. This results in a high value product offering for LED Arrow Boards.
Backing Reliability with the Guarantee of Warranty
Backing reliability, Armitage Group includes a 10 year warranty* for its LED Arrow Boards. Backing their quality and reliability with a guarantee to create piece of mind and avoid the possibility of post-purchase dissatisfaction. The considerations of functionality, quality and price make the arrow boards competitive in the market. Together with the added benefits of warranty, support and add-on additions such as in-cab controllers and vehicle mounting options, creating supplementary value.
Altogether creating a high value product in a commoditised market. Resulting in a quality product that is readily available at a reasonable price. For more information or a demonstration of Armitage Group’s LED Arrow Boards, contact sales on (02) 9771 2364.
By Garry Taylor
Armitage Group
* Subject to Armitage Group Pty Ltd standard terms and conditions of warranty.
[1]Stafford, T 2012, ‘Editorial Preface: “Fast, Cheap or Good; Pick any Two”’, Journal of Global Information Technology Management, vol. 15, no. 3, pp. 1–4.
[2]Li, H and Tan, K 2019, Transformative innovation: turning commoditised products into radically high-value products. Journal of Intelligent Manufacturing, 30(7), pp. 2645-2658.
[3]Jensen, B 2001, Consumers’ price awareness at the point-of-selection: What constitutes the most appropriate measure of consumers’ price awareness and what determines the differences? In Fordham University Pricing Conference.
[4]Pauwels, K and D’Aveni, R 2016, The formation, evolution and replacement of price–quality relationships. Journal of the Academy of Marketing Science, 44(1), pp.46-65.