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It’s Only Common Sense: Make the Investment Where It Really Counts
When I consider the real cost to manufacture a product, I think about the misguided and short-sighted decisions business owners and managers sometimes make in response to tough times. I’m amazed at how often I hear about PCB shop owners who complain about not having enough business, yet their solution isn’t to hire more salespeople or invest in marketing. Nope. Instead, they go out and buy a shiny new drill.
This approach is like adding more water to a leaky boat rather than patching the hole. Don’t get me wrong, equipment is vital to any PCB shop. You need the right tools to get the job done efficiently and meet customer demands. But what good is all that fancy new equipment if you don’t have the customers to keep it running?
If your shop is struggling to bring in enough orders, the last thing you should be doing is firing your salespeople or cutting back on marketing efforts. Yet, for many in this industry, that’s the knee-jerk reaction. Let’s dive into why this mentality exists and why it’s one of the biggest mistakes you can make as a business owner.
PCB shops are, by nature, engineering-driven operations. They’re filled with talented people who understand technology, equipment, and manufacturing processes. Many shop owners started out as engineers themselves, so it’s no wonder they gravitate toward the technical side of the business. When something goes wrong, their instinct is to look for solutions within the shop walls—upgrading equipment, tweaking processes, and improving efficiency. These are things they can control.
But what happens when business slows down and the orders aren’t coming in? The natural tendency is to assume the issue is with production. If only we could produce boards faster or with fewer defects, the logic goes, then we’d attract more customers. So, they invest in new equipment, maybe even fire a few salespeople to justify the cost, and wait for the magic to happen.
Spoiler alert: It doesn’t work. The hard truth is that having the latest and greatest equipment won’t help you if no one knows about it. If your sales team isn’t out there actively engaging with customers—or worse, if you don’t have a sales team at all—who will sell your capabilities? Who will tell your story? Who will differentiate you from the guy down the street with the same equipment?
You can’t rely on customers just walking through the door because you have a new drill. Customers don’t care what drill you’re using. They care about what you can do for them, how you can solve their problems, and why they should trust you over the competition. That’s where sales and marketing come into play. That’s where relationships are built, credibility is established, and business is won.
Marketing Is Not a Cost, It’s an Investment
Cost is one of the most common excuses I hear for cutting back on sales and marketing. Shop owners view these areas as expenses rather than investments. I know that hiring a good salesperson isn’t cheap. Running a targeted marketing campaign isn’t free. But neither is that shiny new drill sitting idle because you don’t have enough business to justify using it.
The difference is that sales and marketing are investments in your future growth. The return on investment (ROI) from a skilled salesperson or an effective marketing strategy can be astronomical compared to the ROI of a new piece of equipment. A salesperson who brings in a big contract or a marketing campaign that generates new leads can keep your shop busy for months or even years—that’s the kind of investment that pays dividends over time.
The Real Value of a Good Salesperson
A good salesperson isn’t just someone who makes cold calls and hopes for the best. A good salesperson understands your business, your industry, and most importantly, your customers. They know how to communicate the value of what you do and how to position your shop as the best solution to your customers’ needs. They’re not just selling a product; they’re selling trust, reliability, and partnership.
The reality is that most shop owners underestimate the power of a strong sales team. They see salespeople as an unnecessary expense rather than the backbone of their business. This couldn’t be further from the truth. Without sales, your shop wouldn’t have any business. Without marketing, no one would even know you exist.
Stop Hiding in the Shop
It’s comfortable in the shop. That’s where you’re surrounded by equipment and processes you understand. It’s predictable, manageable, and feels like home. But the shop is where the work gets done, not where the business is won. The business is won out in the field: in customer meetings, at trade shows, and through strategic marketing efforts.
I’ve seen too many shop owners hide in their shops, tinkering with equipment and optimizing processes, while their competitors are out there winning the business. They don’t realize until it’s too late that their shiny new drill won’t save them. By the time they figure out that they’ve neglected their sales and marketing efforts, they’ve lost valuable ground.
A Balanced Approach
Now, I’m not saying that you shouldn’t invest in new equipment. Of course, you need the latest technology to stay competitive. But it’s all about balance. You need to invest in both your equipment and your sales and marketing efforts. One without the other is like trying to run a race with one leg. Sure, you can hop along for a while, but eventually, you will fall behind.
If you find yourself in a situation where business is slowing down, don’t immediately reach for your checkbook and start browsing the latest equipment catalogs. Instead, take a hard look at your sales team. Are they doing everything they can to bring in new business? Is your marketing strategy targeted and effective? Are you telling your story in a way that resonates with your customers?
At the end of the day, it all comes down to common sense. If you don’t have enough business, don’t fire the salespeople and buy a new drill. Invest in the people who can help you grow your business: your sales team and your marketing efforts. Equipment can only take you so far. It’s the relationships you build and the customers you win that will keep your shop busy and thriving.
It’s only common sense.
This column originally appeared in the November 2024 issue of PCB007 Magazine.
More Columns from It's Only Common Sense
It’s Only Common Sense: You’ve Got to HustleThe Power of Consistency: Showing Up Every Day is Half the Battle
It’s Only Common Sense: The Dangers of Staying Stagnant in a Changing World
It’s Only Common Sense: Invest in Yourself—You’re Your Most Important Resource
It’s Only Common Sense: You Need to Learn to Say ‘No’
It’s Only Common Sense: Results Come from Action, Not Intention
It’s Only Common Sense: When Will Big Companies Start Paying Their Bills on Time?
It’s Only Common Sense: Want to Succeed? Stay in Your Lane