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Estimated reading time: 3 minutes
It's Only Common Sense: Ways to Ensure Failure in 2015
To listen to Dan's column, click here.
I know this sounds pretty brutal, but I have to use any method I can to get your attention: If you don’t change your ways, you'll go out of business in the next 12 months. Don’t get me wrong--opportunities do exist--but you must first recognize those opportunities and create a plan.
The market is opening up. A friend recently mentioned that the average difference between Chinese prices and American prices is down to 30%. That’s a long way from the days when you could pay the Chinese $2 for a board that would cost $10 in the U.S. If you consider the hassles of doing business with a country all the way around the world, a differential of 30% it's just not worth it.
There are also, as I've been saying for months now, more customers wanting to buy American. For reasons ranging from new product introduction to sheer convenience to just plain American nationalism, companies are spending more of their PCB dollars with domestic board shops.
There is opportunity if you choose take it. But if you want to just keep doing what you’ve always done well…good luck with that.
Now, with my tongue firmly planted in my cheek, here are eight ways to make sure you go out of business in the next year:
- Believe in the “build it and they will come” theory of sales and marketing or, rather, lack of sales and marketing. Face it: They will not come if they don’t know who you are and what you can do. If you want to go out of business don’t tell anybody what you can do.
- Don’t hire salespeople. Instead, buy a piece of equipment. We all know how much new business a new etcher will bring in, don’t we?
- Stick to your guns when it comes to high prices. It worked once on that customer last year who needed boards so desperately he paid you ten times what they were worth. So keep it up: Price all of your boards that way. You never know when that customer just might need that board again in the next couple of years.
- Forget salespeople--they're a pain in the neck and always complaining; always making stuff up about the customer being angry because your boards are consistently three weeks late. Get rid of them. Who needs to hear that stuff? Everyone knows a great salesperson can sell what you build: Crappy boards that are always late. Keep judging your salespeople by how well they can apologize rather than how well they can sell.
- Get rid of your reps, too. What have they done for you lately? So what if they got you that million-dollar-a-year account two years ago? Your team is able to handle it now, so what do you need them for? Besides, think of all the money you can save if you don’t have to pay them anymore! And, by the way, why do they need that commission check every single month anyway? Just send them a check once in a while (when you feel like it) and let them complain. Why should you care?
- Marketing? Who needs marketing? I don’t see any evidence of it working so why should I spend money on that? If you don’t believe me, see item #1. If you build it they will come. They’ll find you somehow.
- And social media? Why should you get involved in that kids' stuff? It’s just a passing fad that will go soon...why should you care about it? Just let it pass you by.
- Don’t pay any attention to that performance stuff either. Having good performance just doesn’t make any sense with the industry average for on time delivery at 83% same as yields. What does it matter what your performance is? Just remember your company motto, “We’re no worse than anyone else.”
And one more (I always underpromise and overdeliver): Remember that, no matter what happens, it's not your fault. Things would be just fine if it weren't for those darn Chinese, Canadians, IPC, the U.S. government, Obama, and customers!
If you promise to follow these special guidelines in the coming year, you too could become one of the 1,200 American board shops who've failed in the last 20 years. It’s only common sense.
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: Make the Investment Where It Really Counts
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?