What's Wrong / Pelican Followup

Ok, I had to start writing this response before finishing half-way through everyone's comments, because I knew that there would be something I would forget.

First of all, Pelican is not doing poorly - sorry if I gave that impression. Just because a company is not earning a profit doesn't mean that it's doing poorly. We're only 3 years old, and have seen sales go from zero to more than seven figures over that time. I guess we must be doing something right. However, to suceed, we need to make sure that we're correctly servicing our customers. Hence this post...

On the issue of mistakes and backorders, and other problems like that. We try our best to make sure that your order is perfect, and complete. We just installed a brand new computer system (written by yours truly), that will be able to accurately track and manage backorders. When you supply more than 20,000 parts - it's sometimes tough to keep track of things like that. You will be able to check the status of your order, and see if something is backordered as soon as someone here at Pelican checks in your order (should be first thing the next morning if placed overnight).

On the issue of price, a lot of you are saying that our prices are much higher than our competitors. However, most of the time Vertex is mentioned. Without going into too much detail, Vertex doesn't have a good website, doesn't have on-line ordering, charges you for credit cards, and doesn't have a toll-free number. As you might have guessed, all of this costs $$$. If I were to categorically match Vertex's prices, then it would be bye-bye website, bye-bye toll-free number, bye-bye tech support and all of the other things that Pelican stands for. I did not start this business to run it as a discount house - but instead to run it as a company for enthusiasts. And we've been successful at that. Vertex was around when Pelican was just an idea in my head, and I did not want to be 'just another.' Besides, I have a copy of Vertex's new printed catalog, and some of their prices in the catalog are higher than ours! (printed proof in my hand). If Vertex were so wonderful, then they would be the $30+ million company that Performance Products is. For some reason, they have been around for many years, and are still run out of the back of a garage. (Not really my goal, and destined to become a reality if I categorically match their prices).

Now, some of you mentioned that our prices were higher than Automotion and Performance Products on some items. That's most likely an error on our part. There are some items (such as Weltmeister stuff) that I have to buy from PerfProd because they manufacture it. They do not typically give me enough room to keep my prices lower than theirs, but these products are by far the exception, not the rule. Your feedback here has indicated to me that some of our prices are too high on some items. This is probably not on purpose, but more because we sometimes lack the resources to quickly adjust prices to increases and drops in our costs. We will be looking at adjusting our prices in the near future so that they don't seem wildly off...

As I suspected, it seems that we need to beef up our catalog again, and add pictures, pictures, pictures. I have always struggled with the choice of adding more product or adding more photos, and I usually have chosen product over photos. However, it seems like we'll have to balance that if we are to support everyone here. I would like to place parts diagrams in the catalogs, but for potential liability concerns, I am reluctant to do so. Perhaps there can be a bit of a compromise - stay tuned - I have a bunch of ideas on this subject.

As for BMW, it's here to stay. As our business expands, the economies of scale will help make everything better for both Porsche and BMW owners (new server for this BBS is coming soon). We see the BMW market as an important co-market along with the Porsche market.

Tech Support - most of you use the BBS for tech support, so you are unaware of our award-winning tech staff - Bob, James, and Dave, who answer email questions on a daily basis, and are considered experts in their field (Dave won the PCNA tech quiz at the Parade last year).

As for local events, this is a good idea, but very time-consuming for the amount of potential return. I can't help thinking that my time would be better spent writing more material for the website (which would attract people worldwide), versus attending a local event that may be attended by 200 or so people. Keep in mind that we get over 7000 unique visitors to the site each day.

Ok, I have to make our catalog more comprehensive (add everything including the kitchen sink to it) and more impulse-oriented (like the colorful front pages of Perf/Tweeks catalog). I still think that the Internet is the way to go - ordering on-line is soooo much easier than phoning in orders.

The Wish-list / Project List feature I wrote in about 12hrs - there are still some bugs, and I also need to convert it from flat-file to SQL. Look for that in about 2-3 weeks - it is a high priority. I'm also excited about our new order-delivery and tracking system. Nothing in the industry (not even Amazon) comes close. You'll be able to check the status of your order, see any changes, track backorders, and see who handled and packed and shipped your order, all from the web. This will be true for phone orders too. This will be up in about 2-3 weeks too.

Customer Service? That's what we're known for, so I can't help but hope that the one or two isolated incidents that people mentioned here are the exception.

Advertising on the web. I'm going to have to start selling advertising on the BBS and the website. There's a lot of potential there, but I have been reluctant to irritate my users by tossing ads their way. I have mulled this for a very long time - traffic is now finally to a point where we can be considered a large site by advertisers...

Advertising - We advertise in Excellence, Panorama, Grassroots, Bimmer, some local regions, 911 & Porsche World, etc. We sponsor 3 of the largest Rennlists. My ad budget is almost as large as PerfProds or Tweeks (Actually larger than Tweeks). I think that this has done well for us, although I overspent my budget by a lot (one of the reasons there's no profit). I'm now tapering down my advertising to save on costs - we'll see what the effect is. Local PCA advertising is not bad, but there are so many local regions, and all of these people receive Panorama, so I'm duplicating my efforts there.

Suppliers - I know this one, and ours need to get ready for some phone calls! We're big enough now to get better pricing from people...

Repeat, frequent-flyer programs. An excellent idea - builds brand loyalty. Maybe tie it into the number of posts that somone makes on the BBS? Tough technology questions there, but most likely doable without too much heartache.

Shipping costs? I've installed a formula-based system that queries UPS and gets standard rates from them, so our salespeople will charge the same exact amount that the website charges. Unfortunately, it does cost about $7 to send a 1 lbs package locally versus $15 for a 40 lbs. package locally. Doesn't seem to make sense, but if you want to complain -> www.ups.com. Perhaps I need to talk with Airborne...

The name Pelican is unique and very rememberable. No, it's not SUPER-GERMAN-PROS or AUTOMANIA, or SUPER-DUPER SUPERMACHINES. They all seem to blend into one after a while. Performance Products? How general can you get? You all have valid points about being related to the cars, but when we started, we literally spent 20+ hours coming up with the name (it wasn't picked out of the hat). No body thinks of Amazon as a dumb name, do they (besides me I guess). What has Amazon got to do with books? I think that the uniqueness is more important that whether it sounds like something German techy. Not defensive here, just our opinion...

Well, it's time for a nap. I'm depressed now. I'll have to go re-read the post from the other day asking people what was right with Pelican. Thanks everyone for all your comments. I realize that our typical customer may not be the person who reads this BBS, but the things that you have mentioned are indeed very important and very applicable to the site. (speaking of the site, it's very difficult to compress 2000 pages of tech-oriented text onto an easily viewable home page, I wish I knew how...). Keep a lookout for our new backend computer system to show up on the web (in the on-line ordering section), and also a new search engine that's SQL-based instead of the hokey flat-file one we have now. Got some new photo equipment that I'm anxious to try out as well!

I've deleted the original thread (saving a copy internally of course), because there is lots of info that I wouldn't want my competitors to see. If you have any additional comments, then let them fly here!

-Wayne

I know another tread has already started but I wanted to reply here.

I have said it before and I'll say it again so everyone can see: It takes balls to do what you did!

I am positive that you will make the appropriate changes in due time and make this better for you customers resulting in increased profits for you!

Way to go!!

Adam Roseneck

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1978 911SC 3.0
roseneck@cyberbeach.net

Wayne,Your ability to listen to us and make changes will assure a sucess for your company, and as long as i drive a porsche im planning on been part of it...
VIVA PELICAN !!!!!!!!!!!

Wayne,
I did not get a chance to post my input on the last thread on this issue. I think you are doing a great job with your site. I have purchased alot from you guys, and a couple of things from the other guys. More pictures would be helpfull to identify the actual part, but you got that message. Price is not the only issue. service! That is what I have always recieved from you. For a 3 year old buisness I would say your on the right track.
I started a small construction company 14 years ago on the east coast and have grown it into to a company that builds million dollar homes. I can relate!
Keep up the good work!
david
Hey spell check worked!

Here's my reply from the other post:

I think that one of our problems is that we haven't kept our pricing current with the current changes in exchange rates and costs, which make some of our prices out-of-whack. Some are quite reasonable too, though.
For a lark, I took the Vertex Catalog off my shelf, and there are quite a few prices that we're lower than them on. Then again, we're higher on others. So, I think that we need to readdress the pricing issue for each individual product. The website gives me the ability to raise and lower all prices on the site within .02 seconds. This is a powerful tool, yet cannot distinguish between individual products.

Look for more changes coming soon. I also hear the call for more performance parts too...

Thanks again everyone for your input!

-Wayne

Wayne

Don't be depressed! You have a lot be proud of. You guys are doing a great job with the website, and I have been and will continue to buy all of my oil filters, belts, and maintenance items from you.

I read your write up in 911 and Porsche World, and you should be proud of going from two guys with a 914 to what you are now!

You are right about Vertex, even though they are a lot cheaper on the big ticket stuff, they charge more for filters and what not, I've noticed it too. And on the orders I have placed with you, I've never had a problem with shipping or backorders.

So try to hold the line on price for the bigger ticket items, and I will always check here before buying.


Roger Shadel
78 911SC

Wayne:
How about posting specials on the BBS page margins, just text. Then we'd all see your deals! I've got stacks of oil filters, air filters, timing belts and stuff that I bought just because I saw the deal when I was ordering other stuff.

When I was back home last summer, a competitor had a "meet" at their shop in the midwest and I just stocked up on a one stop shop.

How about a "fest" in the beach cities, so we can shop and maybe even meet Warren if he gets invited!

Dan

I want commend Wayne and the staff.
Myself, as a grocery retailer run into the same pricing complaints that Wayne runs into.
But I don't have to deal with exchange rates.
Thank God.
But the grocery business has had systems in place for 50 plus years. When I set a retail ( based on a competitive price check ) on an item, it locks in the margin. So when the cost changes, the price goes up or down based on the cost change. So if I don't go back in and look at that item or category of items, my retail stays the same. In the meantime the market has changed. I now maybe high or low compared to the competition. But no ever tells you when your lower than the competition. Only when your higher. So it is a constant battle. I've never heard, "thanks your Purina Dog Chow is $3.00 less than Wal-Mart". Just, "your Starkist tuna is .08 higher than the guy down the street."

Hopefully you select the places you do business with, on more than just retail alone. The employees and their help. And the other services they provide. This company is all about service and helping us.

Wayne and the staff can't fix what they don't know. All input is good.
IMHO. But this BBS isn't the place discuss the company's problems. Those should be emailed to Wayne or Don directly. No one putting in the blood, sweat and tears they are. Want to do a poor job.

Keep up the great work !!!!!!

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Cary Kutter
77 Carrera w/3.2
Rennlist #001117-2266
PCA Region - Big Sky

Also, if your Purina dog chow is $3 less than Walmart, unfortunately, it's probably also priced $1 less than your cost!

Tom and I went thru our catalog today, and compared our prices to Vertex's catalog. Some were higher, some were lower, some were much lower (50% lower than Vertex - Carrera brake pad sensors), yet some were higher, and one or two were very high. I have a certain margin that I need to meet in order to stay in business / make a profit, and we will have to adjust our prices up and down accordingly. I probably won't be able to meet at Vertex's prices because my overhead is much higher than theirs - and my value-added to the product is greater as well. However, I certainly don't want to be in the stratosphere. If you do have any suggestions, please email to me or TOM, not Don...

Thanks,

Wayne

Wayne, I, for one, feel kinda guilty-up to now, I haven't really done much of my P-car parts shopping from Pelican-no particular reason other than that I ordered one catalog from each of the major parts houses years ago when I first started my '66 912 restoration/upgrade, and they all continue to send me the latest editions without asking-and was operating under the premise of doing business with whoever had the lowest price on whatever part I wanted to order at a given time. One of the most important things that I've learned from doing a complete, down-to-last-nut-and-bolt restoration of a classic car that's hard to find parts for is that price is NOT the only thing to use when deciding whom to do business with-quality, service (before AND after the sale),subject knowledge, and willingness to help in any way possible are things very difficult to put a price on-but are worth their weight in gold! Pelican's website is everything a website should be-diverse, intuitive, reliable, informative, useful-and FUN! So many businesses just don't get it-their sites aren't much more than electronic brochures-and poor ones ,at that. Rest assured, Pelican will be getting a much greater percentage of my business from now on.

(P.S....Wayne, could you send me a catalog? Thanks!)

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Clay McGuill '66 912, '97 Jeep Cherokee www.geocities.com/the912guy

Wayne, you can be depressed all you want, but just keep on going and selling me parts. BTW can I have credit for the couple of grand I've spent with you?

Ball cup bushing went in today. It was cake. Next, I'm gonna try out my new pressure bleeder that came without instructions!

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Mark Szabo
1986 911 Targa 3.2
1987 Escort 5-speed 1.9
The Porsche Owners Gallery

I just noticed there are 29,000 posts to this web site. I know you are trying to run a business ($$$), but you are also providing a wonderful forum here. I (personally) dont mind paying a few dollars more for something when I can tell the people behind it are dedicated. I AM ONE OF YOUR CUSTOMERS, and am happy to admit it. Thank You. Russ

I just wanted to add, being from Louisiana,
the state bird of Louisiana is the Pelican!
When I first started looking for internet part suppliers for my car I saw Pelicanparts.com and thought WoW ! here is a conpany right here in Louisiana that has parts for my car !!! I soon found out you are not in Louisiana and I do business with you anyway.What I'm trying to say here is I like the name Pelican Parts !! Now what about
t-shirts with your logo and 800 number ?
I'd be glad to pay in advance for one !
I live in Texas now and we got Pelicans here too !

SERVICE--Its all about service! I live in Germany, yet buy all of my parts from Pelican because I can get what I need plus shipping for less money than going down to the local Porsche/Parts store. I have never waited longer than 5 working days for orders by USPS and I have never had a problem with availability or errors.

I learned long ago that service is sometimes worth more than money--as long as it is not a great amount of money. Insurance companies are a good example--you can always find someone to sell you insurance for less than what your paying right now, buy my company, USAA, for example takes care of me instantly with money or a service provider when I need them. That is what I'm paying a few dollars more for, just like at Pelican on certain items.

I will always buy from Pelican because the tech support, parts service, and invaluable help on this BBS is worth the few extra dollars in the long run.

I also asked Wayne one time for a discount on a weatherstripping package like I had seen in a competitors catalog. (I'm not one of Pelican's top 100 buyers either) Wayne offered me a discount based on what I had told him I needed. I later decided not to take him on his offer and paid regular price, because again, the support given has already saved me thousands of dollars if I had to go to a garage to have work done.

I think a Company willing to work with their customers like Pelican is hard to find these days. How many of us tune in daily just to check the posts on the BBS? It is more than just a business Pelican as developed, it is a group of enthusiast with a common interest with few exceptions are all willing to help the next guy! Last week I posted a question on the BB about a Great Britian/Ireland trip I'm taking--completely unrelated to P-cars but I knew people who could answer my questions, would do so to the best of their abilities and that I feel comfortable with those answers. That is different than posting a question to a "generic" site and getting answers from people who you have no clue about their ideas, situations, or motives.

Wayne, Pelican Parts and all the folks on the BBS, Early_S_Man and Superman to name a couple, thanks for helping me realize my dream of owning a 911 and making it affordable.



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Anthony Kram
77 Targa

SERVICE--Its all about service! I live in Germany, yet buy all of my parts from Pelican because I can get what I need plus shipping for less money than going down to the local Porsche/Parts store. I have never waited longer than 5 working days for orders by USPS and I have never had a problem with availability or errors.

I learned long ago that service is sometimes worth more than money--as long as it is not a great amount of money. Insurance companies are a good example--you can always find someone to sell you insurance for less than what your paying right now, buy my company, USAA, for example takes care of me instantly with money or a service provider when I need them. That is what I'm paying a few dollars more for, just like at Pelican on certain items.

I will always buy from Pelican because the tech support, parts service, and invaluable help on this BBS is worth the few extra dollars in the long run.

I also asked Wayne one time for a discount on a weatherstripping package like I had seen in a competitors catalog. (I'm not one of Pelican's top 100 buyers either) Wayne offered me a discount based on what I had told him I needed. I later decided not to take him on his offer and paid regular price, because again, the support given has already saved me thousands of dollars if I had to go to a garage to have work done.

I think a Company willing to work with their customers like Pelican is hard to find these days. How many of us tune in daily just to check the posts on the BBS? It is more than just a business Pelican as developed, it is a group of enthusiast with a common interest with few exceptions are all willing to help the next guy! Last week I posted a question on the BB about a Great Britian/Ireland trip I'm taking--completely unrelated to P-cars but I knew people who could answer my questions, would do so to the best of their abilities and that I feel comfortable with those answers. That is different than posting a question to a "generic" site and getting answers from people who you have no clue about their ideas, situations, or motives.

Wayne, Pelican Parts and all the folks on the BBS, Early_S_Man and Superman to name a couple, thanks for helping me realize my dream of owning a 911 and making it affordable.



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Anthony Kram
77 Targa

You get faster service in Germany than I do in Louisiana. This is the fault of the carrier though. UPS has a hub in Dallas, but they elect to drive my parts coming from the west coast right through Shreveport, I mean right through town on to their terminal in Atlanta Ga and then turn them around and drive them back to Shreveport. I get two day service ground from Vertex because they are in Florida. 6 days from Pelican at the least.

Advertising on the site is a great idea, and the first to do it should be you!! I would say that 2/3rds of the posts on this site minimum have a discussion on what people need either for performance or repairs. Without much effort you can read thru the posts and see several items to underprice and draw in the newbies (Like Me).

In all honesty there are two things I would do.

1) Get in our face on the site ( Product Specials etc. This site is such commonplace for some that we forget we are being hosted by a top end parts supplier.

2) Keep asking the questions, you are getting great input and quite frankly reminding people what you provide. There is a big difference between value and price and we need to stay focused on the fact that the value of what Pelican brings to our Hobby goes well beyond the competition and we need to expect to pay a slight premuim for that from time to time.


I always shop Pelican first. In the past year I have only purchased from Pelican and through my dealership.

Thanks

Jeff C
81 SC

Wayne, as a side note, can you delete that V8 post! I am growing tired of it clogging my bandwidth. As far as what you have been mentioning. Only you know how to make your business profitable. The connection between postings on the BBS and business growth is tenous at best. It is a great source of advertising. For as many people that post, there are just as many that monitor the board without participating. I know this from the emails I get.
The bottom line is price. Shops like AJUSA discount deeply if you go entirely through the website and don't use human manpower. For items like VDO oil gauge retrofit, $59, this was a good price. I bought Bilstein shocks from Pelican 2 years ago without even knowing Pelican because your prices were the best. People like to shop around. Stay competitive, you can't please every one all the time. Your concerns over these issues demonstrates caring on your part. Best of luck.

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8 9 9 1 1, The last of the line.

Wayne,

The catalog has this little banner at the bottom.

This catalog contains only about 25% of the 911
parts that we currently stock. If you don't see
something that you need in this catalog,
just ask us. Chances are that we have the
item.

I currently buy all the little OEM parts I can't find in the catalog from a little import repair shop.

I just call him with the part numbers right out the Parts & Technical Reference Catalog I bought from you guys. Or I send a copy of one of the parts diagrams off your web site.
He orders them from Porsche Reno and they are here the following day. ( I understand there would be a time delay )
Is this business that I could be sending your way. Without being a hassle. And if so, what would be the best way to do it. Simpler the better. Shipping is not an issue for me. For I would have to drive 50 miles round trip anyway.

No one in their right mind would carry this parts in inventory. i.e. hoses, nuts, screws, clamps, grommet. Most orders have averaged $40 -$60.



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Cary Kutter
77 Carrera w/3.2
Rennlist #001117-2266
PCA Region - Big Sky

Stay tuned...

While I know that I can't please everyone all of the time, I know that expanding our catalog to include all the little items that are a pain to source elsewhere would greatly benefit our customers. Also, we're going to be looking at our prices, and looking at our costs to make sure that we're not 'out-of-the-ballpark' on some items. As I mentioned previously - I don't want to and cannot match Vertex price for price, because I don't dump the parts - I support them with our reps, our Customer Service, and our site.

There will always be people who shop entirely based on price. I don't mind giving up that customer because that's not my target market - never envisioned competing 'soley' on price, and probably never will. I'll shut down Pelican and go do webdesign (a much more profitable business) before that happens.

Tom and I are in this biz because we enjoy it (most of the time)...

-Wayne