Driving Through the Storm
Five things you can do during tough economic times.
By Richard Gottlieb -- Gifts and Dec, 2/1/2009 12:00:00 AM
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Richard Gottlieb |
A number of years ago I was driving through a powerful downpour. The rain was so heavy that I was unable to see five feet in front of me. It was dangerous. In fact, cars were pulling over to the edge of the road in order to sit out the rain.
I, being much younger then, decided that the smart thing to do was to keep driving. If the rain was moving in the same direction that I was moving, I would just keep catching up with it every time I stopped. On the other hand, if the rain was moving in the opposite direction that I was moving, I would move through it faster if I just kept going. Either way, I figured moving was better than stopping.
As I look back, I think I did the right thing. My decision may seem a bit risky, but provided I drove carefully and slowly (and I did) it was a prudently optimistic decision. What I am basically saying is that thunderstorms, like bad economic times, seem like they will last forever whereas, in fact, they are both finite. The way to get through them faster is to keep moving.
With this in mind, I have some recommendations for how manufacturers can keep moving during this economic downpour that we are all currently experiencing.
Keep Selling
For goodness’ sake, do not decrease your sales and marketing budget; in fact, increase it. That should not be hard. Most manufacturers use independent sales reps. That means that the costs are commission-based, so they are only paid out if a sale takes place. Accordingly, your investment can concentrate on supplying your reps with great tools and support.
Rework your sales material. Make sure that all your sell sheets are easy to understand, complete and impactful. Check that your salespeople have sufficient, high quality, up-to-date samples to show to customers. Provide them with a password-protected area on your website so they can download images and find specs.
Join your salespeople on key sales calls. You should, because now more than ever before, they may need that extra shoulder to push that sale through. And while you are there, demonstrate the best way to sell your line. Quality control can apply to a sales presentation just as much as to a product.
Be Positive
Pity parties are easy to find during tough times. People everywhere are suffering and they want to find someone to affirm that they are not failures; that tough times are happening to everyone and not just them; that they are not doing anything wrong.
Pity parties are understandable, but avoid them. If you find yourself suddenly in the middle of one, move the thermostat from depressed to hopeful. Start talking about anything positive that you can think of. This will help to move the conversation from one of despair to one in which some potential gems of information can emerge with positive results. Maybe someone will remember something good that happened and can be built on. Maybe someone knows a company that is thriving. This creates the opportunity to figure out why.
One final asset for you is that people will see you as a person they want to be around because you are strong. In fact, you will enjoy being around you a whole lot more as well. Not a bad thing.
Plan for the Future
Planning for the future is important because it is in its very essence optimistic. It is a statement of your belief that your company will be around in the future. This will go a long way toward creating a positive attitude in both your employees and customers.
It is also a great way to use some unwanted downtime. If things are slow, get your people together and have a brainstorming session or two. Talk together about what is coming down the road and how your company can anticipate it and benefit from it. That way, when the storm passes, you have your suntan lotion ready to apply.
Open New Markets and Channels
Put some time and energy into opening up new markets and channels of trade. This can add revenue now and make you a stronger and more diversified company after the storm. Are you selling to teacher supply, craft, party, clothing or any other format that might be a fit for your product?
Are you selling to other countries? Study your product closely to see if people from other countries will understand and appreciate it. Remember, the more universal the product is, the more likely your chances to sell it to a much broader customer base. A good rule of thumb is: The less dependent the product is on words, the easier the fit.
If it does involve words, is it easy to translate linguistically and culturally? If so, you will have some cost in doing the translation and redoing the packaging but you may have an opportunity to really grow your business in a new area.
Only the Strong Survive
Some of us won’t make it, and that is truly unfortunate. But for you, it could be a real boost. Once things settle down and return to normal (or the new normal) there will be fewer suppliers feeding the market with goods. High demand and low supply means that your business may take off like a rocket and your business, as one of the survivors, will control the high ground.
If you are feeling this economic downpour coming down and have pulled off to the side, my advice is start that engine up and get back on the road. Keep driving and pretty soon you will see the sun.
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