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Re-Capturing American Manufacturing: Can Competitors | ||||||||||
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xhibiting at trade shows can be amusing as well as an enlightening experience – especially when arch rivals present new products and NextGen technologies. After years of walking convention floors, it has become clear that the personality make-up and confidence of the person stationed at the booth will often dictate how an exhibitor may present itself to a customer as well as how the exhibitor will greet the competition. ID badges clearly show personal and company names. However, just in case the booth person does not know PMI (Pioneer Magnetics), I am always quick to introduce PMI and myself. Usually, a competitor will be polite, welcoming and, in some cases even interested in “talking shop.” Yet, there are still quite a few competitors that have taken another stance: Some become extraordinarily secretive while others seem a little over the top by ushering one away from the booth area. Having a competitor’s product yanked from my hands is disconcerting. There was one situation that wasn’t clear to me - was it PMI or I being complimented when a booth person exclaimed loudly, “I know who you are…!” This negative, knee-jerk, protective reaction is rather surprising since most power supply companies send out news releases and e-blasts. We all advertise and tout new products on the web page. And, of course, there are times when customers and/or suppliers are not very discrete. So, what’s the big deal? What is it about some competitors that find it difficult to speak with their counterparts? It is true that our job is to generate more business prospects quickly, outsell the competitor, cement long-term relationships with a customer and drive for that year-end bonus. We are all trying to make a living. And what’s wrong with doing everything possible to provide for the family? How many of us do everything we can to go on that exotic vacation? And, what about the need to set up a college fund for the kids as well as initiating a process geared to protecting us during the retirement years? How does all of this happen? On a personal basis, I would not be on the fast track for business growth and earnings if I didn’t use that famous sports motto as my mantra, “Winning isn’t everything – it’s the only thing!” Wouldn’t it be fantastic if we could win every time? Unfortunately, it was only one time that the Miami Dolphins that could claim a “perfect season” by winning 100% of their games culminating with a Super bowl win. What about winning 50% of the time or even 25%? Realistically, we will not win every opportunity. Discussing won-loss records with competitors (at least those that will talk to me) indicate that there is roughly a winning percentage in the 10% to 20% range. That’s a far cry from winning even 50% of the time. If this dismal won-loss record was in professional sports and continued for several years, the coach or manager would be fired and players not performing would be traded. However, this does not happen in our industry. Yet, there is a very easy path leading to more business successes. The first step is to identify the reasons why an opportunity was lost. Could it be “price?” Perhaps a company does not have adequate offshore capabilities? Do past quality issues come into play? Was there a “customer service” issue in the recent past? Time to market is always a factor. How often has an opportunity surfaced with the buyer stating, “The job is yours if you can deliver in six weeks!” There are also other reasons and important ones as to why opportunities are lost. How many projects have disappeared because a power supply company could not offer a “total solution”? It might have been that a low power or mid-range power supply was not part of a product line. Or, suppose resources for value added aspects of a program were not available. Perhaps the power supply company was not capable of designing high-powered products. PMI specializes in low voltage/high current (air and liquid cooled) products. There have been times when a purchasing agent told us “one-stop shopping” was important – we would not be awarded the contract since PMI did not have a 600 watt power supply with “XYZ options” @ < $.20/watt! It would have been fantastic if we could simply call up the low-power competitor down the street, couple our resources and together book the contract. We all have our share of missed business stories. However, what about unique, positive experiences? One of the most interesting ones occurred several years ago. Usually, PMI is sole sourced for a project. However, there was a high-end, sensitive program calling for the business to be shared with another power supply company. We were “arch rivals.” In fact, part of the other guy’s mantra was to cast doubt on our company. Nevertheless, we both shared 50% of the business. One day, the competitor called up and the president was a little chagrined. He mentioned that his company had run out of a critical part and could we possibly sell them this needed material. We shipped that urgently required material the same day. We even picked up the shipping costs. The hook? I told him that next time we were at a conference or I was in his town, he owed me lunch. From that situation, we became professional friends and continue to help each other from time-to-time. There is another PMI competitor that has had a professional relationship with us for over 10 years! We help each other with material issues, Safety agency constraints, and joint projects. This wonderful rapport has now evolved into a licensing arrangement – a total win-win for both companies. Competition is one of the fundamental aspects of “marketeering” and “capitalism.” Americans are smart. We have a history and culture of smartness. We do but more importantly, we think! We create! The job market is rapidly changing. Other than housing, infrastructure, government (TSA) and some niche industries, it does not appear that the United States will regain its manufacturing prowess unless we start doing things smarter. It could be a novel and rewarding experience if we re-thought the way that business operates. Old school is “knocking off the other guy.” What if competitors – particularly American competitors – could find a way to actually pool their specialized technologies and resources translating into business opportunities that ordinarily might be lost to an offshore company? Why should we lose a large order simply because the customer requires a complete solution – a complete solution that neither competitor could provide as individual companies; but, by working together, it becomes a win-win for all concerned. I am rising up and challenging our competitors to join and recapture the spirit that made America manufacturing so great! Let’s go for the gusto!
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