Issue 201 - "We're in a good position..."

Over the last week I’ve been hearing what sounded very strange from several food distribution and processing business owners. The phrase they used, or something similar to it, was “We are in a good position.” With the current economic conditions I was curious what they meant. This week we look at how they responded when I asked.

When Companies get Killed, Someone is making a Killing If you’ve been trapped under a rock for the last month let me bring you up to speed with two select quotes from the business world…

"This has been the worst financial crisis since the Great Depression. There is no question about it," said Mark Gertler, a New York University economist.
Expectations for a quick end to the crisis are fading fast. "I think it's going to last a lot longer than perhaps we would have anticipated," Anne Mulcahy, chief executive of Xerox Corp., said Wednesday.

So why when I talked with food business owners are they telling me they’ve had a great fourth quarter, are expecting to grow 30% this year, and increased sales 10% last year? Let’s look at how they pulled off these feats.

First up, a North Jersey distributor specializing in Italian Foods. They indicated they had a great fourth quarter with sales and profitability way up. When I asked how that was possible with the economy in the toilet they said. “Our product line lends itself to inexpensive meals, as people move from steak and shrimp to pizza and pasta we see our sales increase.” By taking advantage of well established supply chains they have been able to acquire new clients looking for vendors who specialize in less expensive meal items.

The next surprise came from a provisions distributor out of Pennsylvania who is investing in systems improvements in anticipation of 30% growth in 2009. Their secret: “We plan to increase market share dramatically this year, several competitors have already let go of salespeople in our area. We’re in a good position and don’t have to do that. When they cut back, we grow.”

The last inspired comment came from a full line distributor who saw steady growth last year and is expecting to see more in 2009. “Everybody is facing the same problems, sure we took a hit, but my competition is getting murdered. We expect to acquire one of our former competitors and just keep growing.”

Three different stories of success in difficult times. Lessons to be learned?

Focus on products that can sell in your environment.
Sales and Marketing are most effective when your competition is quiet.
When everybody takes a beating, the strongest survive to profit.

This week our Thinking inside the box is inspired by an articled on Imedia Connection by Dave Chase. Dave is Chief Marketing Director for Altus Alliance and a recognized expert in increasing business through effective Sales and Marketing strategies.

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