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Very informative and telling blog here. It is insane for small business to have to compete with corporations. I think Jon from New Gen (plug because we bought from him) expounding in all directions at vendors, customers and manufacturers is very telling of the current business trends in our country. Just an opinion/observation with respect to some companies (not all), but I think it is due to tight resources coupled with lean manufacturing on a JIT type schedule. So many customers do without parts while vendors hold the cash as long as possible due to the wait time on manufacturing. I mean do people pay for a 300,000 dollar car, house etc without it being built yet? Up front? OK yes, that's how the government operates, but that's not what we are talking about. All the while the manufacturer is waiting on the order and the cash from the vendor to start production. Likely the manufacturer is waiting so they don't have to put their cash into materials and at a minimum have a solid commitment from the vendor. That is because current models tell manufacturers/vendors it ain't cool to tie up your money in stock for your vendors/customers when you can do all these other wonderful things with it. Looks as if it is truly a **** rolls down hill process. This wait and hold game eliminates the risk of spending precious capital for all involved, except the end user (us) who is footing the bill from the get go. It's like a parasite, and whether it is the consumer, vendor or the manufacturer to blame, it eventually kills the host(us) and thus the business goes away. What most likely got this started is the old drop ship from the manufacturer. Once upon a time some guy had the notion of contacting the parent company just to see if they would sell direct. This thought has most certainly passed through the visual cortex onto the dentate gyrus in the hippocampus in all of us. So from the manufacturing standpoint, units sold equals market share, and in this day and age, market share wins. Doesn't really matter if you cannibalize your supply chain or your end users resources to get there.
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I've been mulling this thread around in my head for a couple days. Here's my Bob Sugar to your Jerry McGwire, Jon.
The line that sticks out is the call for buyers to take responsibility. It's absurd. If you are taking an adversarial stance to the manner consumers buy your products or shop your company, then you either need to do a better job taking the buyer's temperature or close your business. If the guy's wasting your time, identify if his purchase is a reality and invest your time accordingly. Great sales people can sum up a customer in 30 seconds and pull out the necessary tools to adapt. I teach this to my teams constantly. It's insane to ask a potential group of buyers to all behave a certain manner and take in to account the personal lives of those selling a product. You know where my responsibility ends as a buyer? It's when I fork over an obscene amount of money for a set of wheels, subframe, lug nuts, sandwich, lap dance, etc etc. Everyone struggles. Everyone has things that go to hell during the day. Why are the personal issues of a company the concern of the buyer? You should take into account the sweat it took for the buyer to generate the cash to buy those wheels or subframe. Then take into account the frustration when that buyer is told time after time product will be ready, yet doesn't materialize. Take the time to reflect on these things within your own company and you'll find the key to customer service. It is a vicious marketplace out there, but you're focused on the behavior of a customer base rather than reinventing your behavior as a seller. SERVICE WILL ALWAYS BUILD A FASTER BASE THAN PRICE. Having said that, and turning to a personal note. Know that I like you Jon. I think people like you are an asset to the movement we all love and enjoy. I think your knowledge is your biggest asset and you have the talent to make NewGen thrive. I however, won't be continuing our business relationship. My expectation as a buyer from NewGen didn't meet the customer service standard that you provided and you turned me off. Call me a nightmare customer, but I don't feel I was asking for much during the process. Dont take it personally, it's just business. People have been saying "......pick two". Think about which two you gave the customer in my transaction. I have finally recieved my wheels from you and they FAR exceeded my expectations with regards to quality and finish. They are no doubt on par with a Forgeline or HRE wheel. I love them, but more importantly my customer- my wife- loves them. I wouldn't hesitate to tell someone where I got them should they inquire. They will be the crown jewels of my build but the process took what is normally a ceremonial night of box opening into a long sigh of relief. People who read this and have waited for wheels know exactly what I mean. It may be hard not to, but don't take my post as a flame NewGen thing. It's simply my response to your OP and it couldn't have been more timely. I know that you'd agree for sure. Take it as an oppoutunity to develop and reflect. I take my team's CSI scores more seriously than their sales. It's our bloodline. I want to see you succeed as well as all of the other guys accross the country who are scratching and fighting to make their spot in this tiny market. I wish you the best of luck and wouldn't hesitate to buy you a beer at Del Mar. Dave |
When my partner and I ran a large wholesale business his favorite saying was...
"we'd have a really nice business if it wasn't for all these damn customers!" |
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Bottom line..... take a business class explaining how basic economics work along with principles of market, and market share, and you will understand this above comment. It is extremely true. Sorry, but Im comming forward, and people are going to get mad, but in my opinion.... you shot yourself in the foot by starting a thread crying about how a market works. Build a better mouse trap or find another market to build your buisiness in. Brett |
Some very good points that I agree with. You can't change people to fit into your ideal window. You can change their PERCEPTION of you through action and track record. Your reputation or referral makes them want to work with you. It could be considered a warm contact. The trust is already partially there and that means more profit and less headaches in most instances.
I like what somebody said earlier in this thread. Eighty percent of your income comes from your best clients. Concentrate on them and the additional business they create. Chances are, if you like your client, you'll like their friends and your personalities will mesh. |
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Lenie,
If any of the vendors you're waiting on are vendors from this site I'd be glad to try to help out. You can send me a pm. |
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Thanks again though. |
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