The downside of being aggressive

by Jack Burke

When the economy started bottoming out, many manufacturers rightly began to cut production. Eliminating inventory was the name of the game.

But as the economy has shown some signs of life recently, manufacturers who made the most drastic cuts are facing a loss of business. They have demand, but not enough product.

John Deere is in that boat. According to Business Week, Deere shrank its inventory 28 percent between January 2009 and February 2010. Deere’s inventory was the lowest among 15 farm and construction equipment makers. That’s all part of Deere’s plan to become a “build-to-order” company, one that keeps inventories low.

But it has a downside. Farmers looking for equipment for the fall harvest season might not get the Deere equipment until December or January—too late for most field work.

As the story says, inventory management is crucial, especially in a slump. But maximizing profit without cutting into future sales will be a difficult balancing act as the economy improves.

Working with the media beast

by Jack Burke

If you think your business has a great story to tell, one that would make every media outlet knock down your door to get to, ask yourself a couple of key questions:

1. Is it really that unique? You may think X is the greatest thing to ever happen, but maybe X is happening everyday to someone else.

2. What’s in it for the media? Just like most other businesses, media outlets have cut back and slimmed down. They need to make hard decisions on how to use their resources. Covering your event or story might not be a priority.

3. Is this just about you? Media outlets need to tell stories that affect or enlighten their overall audience. Can your story help them do that?

4. Why do you want coverage? Your ego isn’t a good answer. Neither is “building business.” Media outlets do something else besides cover events and do stories. They sell ads. 

Spending money to make money

by Jack Burke

Those green shoots some see in the economy are getting some fertilizer: According to the Wall Street Journal, household-goods makers like Procter & Gamble Co., Colgate-Palmolive Co., Kimberly-Clark Corp. and Clorox Co. are cranking up their advertising, hoping to coax consumers farther out of their shells.

Recent survey data show consumers are more willing to splurge by eating out or buying new shoes, but the same doesn't necessarily hold for everyday household goods, according to the story.

Those companies understand that waiting and hoping won’t generate sales. Even in a down economy, you need to get your message out.

Recession’s over! Nobody wants my business!

by Jack Burke

Exactly one month ago, I went to a trade show. All the people showing their wares were happy to see me, told me all about their great products and got my contact information. So far, so good.

In the month since, I’ve received exactly three follow ups. Three. That’s out of at least 30 vendors I gave information.

It could be that business is so good for these vendors can’t handle any new customers. If so, good for them.

If not, why take the time, effort and money to go to a trade show just to ignore potential customers? 

Don’t play hard to get

by Jack Burke

I’ve been developing a contact list of media organizations in a specific industry segment and one thing I’ve found is that many people don’t want to be found. Oh, they have websites, all right. But try to find a name of a real person or a phone number? Good luck.

A cool website is a great thing and can help build your business. But sometimes people want to contact a real person. Don’t make it hard for them. They’ll find someone who doesn’t.