2 replies to this topic

[A G]

Yesterday, I had a customer come in and place an order. The order was for our "other" business here, flags. Our best known competitor in that arena in the state does a lot of radio and some TV and newspaper advertising. When it comes to flags, everyone knows who they are.

The couple that own and run the business are nice people. A decade or more ago, I did a bit of business with them here and there, where they had some goods I needed. However, in the last few years, I've sensed a change there.

The customer who came in, told me fully what I had somewhat sensed (when I phoned them to get pricing - mostly to find out how I did/could compare with them).

He said that when you go in to their main store, it is hard to get someone to help you (1). And, (2), if they will help you, they likely will not know the information on what you want. So, (3) if they can find someone who does or should know, they likely are too busy to get around to helping you.

After he left, his experience with them reminded me of similar experiences I had going back a decade plus with an industry supplier. This supplier made bags - tote bags, barrel bags, etc. And they made them here in the good old USA. When they were but a little "husband & wife" team, they were much better. The husband, Peter, almost always quoted longer lead times than you wanted. But, he was honest. He didn't promise what he couldn't deliver.

We were able to get an order doing many thousands of little barrel bags for a local bank. We sourced the order to them. Their factory wasn't one they even owned. In fact, it was in my own state, maybe 90 miles or so away from where I am at. But, they (the company I dealt with was in the Portland, Oregon area) handled all of the sales. And, in many repects, they were good. They probably helped that "cut & sew" shop do far more business than they would have otherwise. Both profited from that relationship.

Well, as the years went, they grew. The sales office part, at least, did. They added more staff, in quite a short amount of time, too. And, for me, things changed dramatically, too.

Before, I was happy to call and talk with the husband or wife. They could give me answers. And, as I said, they were brutally straight with me. If there was a problem, they fixed it. And they did so as "pronto" as it could be done.

Afterwards, I got "minions", each and all who didn't know me. There was no smooth "hand off" from the husband and/or wife to them about me. When we did that one big order, we billed maybe close to $35,000 with them. (Actually, it was done as many intermediate size orders - typically 1000 qty bags, done over a period of several months). But they knew me, and I knew them.

Once they added staff, though, I had to try to deal with people at the company who had no idea of my history with their company. They didn't know how much I had contributed to the success of the company. And hence, they didn't care about me.

They regurgitated the strict policies that the husband instructed them to give. But, there was none of the "love". The wife part of the company use to cheer me on, as I got and placed the orders with them! I loved the encouragement. I appreciated the fact that I was appreciated.

But then, I became "nobody". I was just another (supposedly) anxious customer, and they were ready to give me the "hard line" policies they had been instructed themselves to regurgitate to customers. I think the husband part of that team never fully realized how important the "love" aspect was, and never seemed to convey that to his mini-bureaucracy. And they thought themselves important, as they got pay and titles and desks and phones, etc.

I've seen a similar transformation with a number of companies. They become successful, so they get bigger. The people you spoke to before either are a tier or two behind the people you now have to deal with, or are gone altogether. Where "favors" were accorded before, the hardnose "bean counters" (accountant types) have sway. They've run the spreadsheets, and they've calculated that if they maintain margins at X%, they should make X% x Y qty more than they have done heretofore.

But, whether or not they lose others, they often usually, sooner or later, lose me. I eventually get tired and disgruntled and feel "un-loved" and "under appreciated". And, I go to try to find the next little start-up who is hungry enough, and is small enough, that they act like they care (whether they do or not), enough to "bend backwards" a little bit, here and there, to get and keep my business.

That is, until they become really successful, start to add staff, and get longer on lead times, instead of having the shorter turn times that made them 'famous' (with me), or the "help" with pricing here or there, etc. And then we have to go searching a bit again.

What do you have to say?

[Volant]

Sounds like a common trajectory for a successful business to me. The new employees are not going to have the same passion as the original founders.... and until the company gets even larger to that next step you talk about, they cannot afford to hire industry veterans to replace that passion and knowledge.. so , yes, for a while the growing pains would change the way the original "foundation" clients might be treated.

What would be the answer in your opinion? I see the same thing happening here... the founders are now so busy or off doing the embroidered art gallery and interior design embroideries that I have to make it a point to personally call on the top 40 long term clients to make sure they still get that touchy feely experience from us.. that they understand we were going thru a growth spurt and that we never intended to lose the personal touch they started us with, but until we are large, etc... etc... Is this good enough... probably not for some, but we are trying something.

Anything else your example company could have done... other than Not grow?:D:D:D

[A G]

Volant said:

What would be the answer in your opinion? I see the same thing happening here... the founders are now so busy or off doing the embroidered art gallery and interior design embroideries that I have to make it a point to personally call on the top 40 long term clients to make sure they still get that touchy feely experience from us..

Anything else your example company could have done... other than Not grow?:D:D:D

I'm not suggesting "not growing". However, I suppose it is a bit like a marriage. Your family multiplies, and then you forget what helped you fall in love with your spouse and/or vice versa. The kids become the focus, but they wouldn't be there without the husband and wife.

What you told me you are doing reminds me of what one of my nephews said about two employers back. They had lost focus of their bread and butter, and a number of core staff people had not, and were servicing them?while management went off trying to please "certain elite" clients, who did not represent, necessarily the bulk of their business. He finally left after they had laid off or forced out enough "good staff" people, he could see the writing on the wall.

I brought it up, because it seems like the "success-failure" cycle. It happens in politics, in nations, in businesses, in families, and in friendships. I think one way to "avoid" it (or minimize it?), is to realize that it almost always happens (one takes certain others and things and transactions for granted), and one quits or doesn't as diligently do the things one did at the beginning. Like old King Saul (and so many other monarchs), they start out well, but they end off badly. I think there needs to be a large amount of humility. That is, one must always be ready to see that they've veered from their original course. And hence, they need to make a mid-course correction, and get back to some (if not all) of the things they did when they began.

I'm pleased to hear that you realize the ball has been/is being dropped, due to the owners of the company you are working for focusing their attention elsewhere.

I was thinking just yesterday, how many things I am NOT doing that I should be (of course, we have the ready excuse of age, energy and agility (and/or the lack thereof?of agility at least). I'm in my mid-50's, and try as I might, I cannot do the things I did 10 years ago physically. Mentally, it is getting a bit tougher for me to change course?even when I ardently desire to!! Habits and ruts are easy to get into?tougher to get out of?especially if the habit or rut is deep and long!

I'd like to hear more of your perspective, and that of others too!