We Have Been Selling Ourselves Short!

We are the only still manufacturer that brings modern technology to the distilling industry. Where our colleagues manufacture and sell outdated equipment, that hasn’t changed in centuries, we bring innovations to the industry that make distilling easier and better. We are the odd one out.

Where other still manufacturers focus on just building stills, we offer test stills, mashers, fermenters, and an automation suite to bind all of your production equipment together. Our colleagues offer only partial solutions. We offer a one stop shop. In doing so, we are the odd one out.

We are the only still manufacturer that educates its customers. Where we have an online as well as a practical training available, other still manufacturers do not explain you how distilling works or how their stills work. We do and – again – are the odd one out.

We are the only still manufacturer that offers recipe development services to its customers. Odin & Team have designed over 450 award winning recipes. Again, by doing so, we are the odd one out.

We are the only manufacturer that offers services. We help you with assembly. We help with first runs. We answer your questions. We help you become a better distiller. Others? Other manufacturers do not even pick up the phone! Yes, here too, we are the odd one out.

Our innovations, our one stop shop, our educational facilities, our recipe development department, and our services have been of tremendous value to you, our customers. But we ourselves have never priced them accordingly. For us they were more like gifts, that we gladly provided to anyone purchasing an iStill. To help the industry in general, and to help our customers specifically, at outperforming both Big Alcohol and their peers.

By being the odd one out, we have been selling ourselves short, though. Here is how. Even though our revolutionary distilling technology is much more advanced and efficient, we sell at prices below those of the traditional one-trick-ponies. Even though we choose materials that guaranty huge longevity benefits and prevent copper-contaminated spirits production, we have been selling at a discount.

During most of their lifetime, our test stills, mashers, and fermenters have been sold at production cost price. Literally at no margin, even though we have fixed costs too. Those fixed costs were covered by iStill.

Our educational facilities are valued at an amazing 9.8 out of 10. By you, the customer and iStill University student! Yet, we hardly break even. The sale of iStills helps finance the certified craft distiller and certified master distiller courses.

With over 450 award winning spirits recipes, we are the best and the biggest and the most successful recipe development company in the world. But we deliver these services at cost level, as we have – for too long now – seen them as add-ons that help us help you. Can you guess what finances the below market-standard, discounted prices? I bet you can …

Finally, we pick up the phone and try to be of assistance whenever you call. That’s not a paid service. Well, not by you, the customer. But we have staff available, basically on a daily basis to answer all of your questions. These people need to be paid though. Can you guess where that money comes from?

Do you start to see how we have been selling ourselves short? We have delivered amazing and unique services, that are in high demand and of high value. Yet, we have delivered those services at price levels that were way too low. This hurts in three ways:

1.⁠ ⁠A service or good that is delivered under cost price hurts the business case;

2.⁠ ⁠Nobody invests in bad business cases;

3.⁠ ⁠A price that does not reflect the real value reduces the perceived value;

Some examples? A deeper dive? Here we go … We weren’t able to further build-out our line of iStills Mini until we fixed the initial pricing problems. We could only incorporate the mashers and fermenters into our integrated distillery management system after we raised their prices. Money is needed to allow for further investments in new innovations, right? A fair price, that aims to recover investments in new innovations, drives innovation. A price that is too low can stifle innovation, as no funds are available for further development …

The above examples cover the first two points. I hope they help explain how we can – with correct pricing – be of more assistance. Another example, more tailored towards our services: We helped setting up two distilleries lately. We were able to fly over, do assembly and training on the job, and even recipe development, because we asked a normal price. If we were to finance that from the still sales, we would have been incentivized to keep our investments in those services minimal.

So, low pricing of everything that makes us stand out has not helped our business case. And a bad business case isn’t worth much further investment in itself. We need to amend that and we need to amend it quickly. But there’s more. “A price that does not reflect the real value reduces the perceived value” or to put this point more bluntly: “Anything that comes for free is perceived as worthless”. By not asking a good price for all of the value that we bring to the market, we have not only undervalued what we offer, but we have allowed our customers to undervalue what we offer. The result, in plain English? We see a rise in customer entitlement.

Three recent and real world examples to make my case. Customer “A” mails and then calls us with the following message: “Something brown is leaking out of my column … any idea what it can be?” Please, think about it. Why should a distiller call us instead of disassemble the column and come to his own conclusion? And what happens if we start to help by asking follow-up questions like “did you flood the column?” or “what do you use as coolant?” It somehow becomes our problem, which is both weird and uncalled for.

Customer “B” informs us that his iStill 2000, that has been in operation for many years and never missed a beat, all of a sudden had a robot that stopped working, after he had some electricity work done. If we could diagnose it and help fix it. Service-oriented as our employees are, we dived in and entered into long discussions about what happened to the (third party) electricity system that provides power to the still. Why? If the customer sees that the robot is not working, he can either order a new one or have the old one refurbished. We approach the distiller’s problem with the intention to help … and we end up by having a problem ourselves as the electrician tells him he didn’t cause the problem.

Customer “C” also has an iStill 2000. She purchases a second-hand iStill 5000 as business goes well. Mind you: not an pre-owned iStill, but a unit that belonged to a third party. The problem we are supposed to help with is that the rum from the second-hand unit tastes different. This makes sense as it is a unit that is way older, that maybe hasn’t been cleaned properly, and that needs different power settings as it has a different (older) power to column diameter setting. We somehow end up spending days trying to help out. Days that are not covered by an invoice. The result? Frustration with us and frustration with the customer.

By no means do I want to say that customers “A”, “B”, and “C” were wrong. Yes, as they are distillers and owners they should be able to make their own analysis. But us always being available opens a door that should remain closed. We cannot diagnose from a continent away. And we should not even try to diagnose as that is the customer’s responsibility. By adding all of those free additional services, we are creating entitled customers instead of loyal customers!

So, I did a lot of thinking, and things are going to change. iStill produces advanced distillery equipment. iStills, fermenters, mashers, mini’s. iStill is a production house. What makes us special? Our advanced technology and our amazing build-quality. What question does someone interested in becoming a customer ask? One question, and one question only: “When can I come by to meet you guys and to see the iStills?” Easy, right?

What question from existing customers should be worthy of an answer? Again, one question and one question only: “Can I order part “X” or part “Y”? Anything else is paid consultancy. And consultancy will be provided by a new company that we are setting up and that we’ll call OdinsConsultancy.

From now onwards, if you need equipment, you order with iStill. From now onwards, if you need support, you can ask OdinsConsultancy. Yes, we still train and educate. Yes, we still develop recipes. Yes, we can help refurbish and sell your old iStill. Yes, we are inclined to help you answer any question that is worth your money and our time. But you have to define that question precisely, and inform us on the outcome you want to see. That way our consultants can establish if we can help and what that investment would cost you.

As we start making money on all of the extra’s we have been providing, I expect a rapid evolution of the consultancy on offer and of the value it brings to the market in general and to our customers specifically. As we’ll finally be making money, there’s room for improvement. As you’ll finally be paying a fair market price for what nobody else can deliver, you will grow more content (or at least more appreciative) of the amazing consultancy we have available.

We are currently incorporating OdinsConsultancy. The website is still to be developed. But you now have a general outlay of where we are going. As always: with the goal of making distillation perfect. Or at least a little bit easier.

Thank you & At your service!

Dr. H.E.J. (Odin) van Eijk, MScBA
Founder of iStill and OdinsConsultancy