Change (Yes, change): The economic downturn presents an opportunity for the meat industry to head in some new directions
From Meatingplace magazine, March 2009
By Mack Graves, CEO, Panorama Meats, Inc.
Change surely occurred on Jan. 20, 2009, the 84,938th day of our republic. It was a day that will alter and illuminate our times, as Walter Cronkite used to say on the 1950s television program “You Are There.” It was a day for change, a day to witness change, a day to pledge change. It was, quite simply, a day that will make a difference.
If you haven’t heard the word “change” repeated ad nauseum over the past six months, you have been sheltered from all forms of media. If you have been hearing it, you’ve likely grown tired of it. But meat industry executives are best to adopt the concept of change and—better yet—put it to good use.
With change as the mantra in these exigent economic times, what should you do to “preserve, protect and defend” your company? With foreclosures, diminishing 401k plans, bankruptcies and layoffs, are folks still going to eat, much less eat meat? Of course they are. But staying in business to keep food on the table—yours and your customers’—is going to require an extra effort. And that means, well, change.
Make the following changes, if you have not implemented them already, to help strengthen your business for the economic fight ahead:
Customers: First, talk to ‘em, and the best way is face-to-face. Get out of your office and go face that “bear in the cage.” Second, nothing is more powerful than a question. Use that power to find out what your customers really need, even if it’s lower prices. Figure out a program that both lowers prices and keeps your company solvent. Special pricing for a limited time on a limited number of products may be one way. Third, solve a problem for them, and you definitely will differentiate your company from all your competitors. Last, keep ‘em paying, because your customers will long remember your offer to work out a payment plan. Cash flow is king in these tough times.
Vendors: If you, too, can’t punctually pay the vendors you owe, work out a payment program (and stick with it), and most will work with you and continue to supply you.
Employees: Layoffs are becoming the norm, and you may have to go that route to make sure your company survives. If you must, make those most difficult personnel decisions with care and concern.
Communications: These tough times may be the best time to consider a switch in your communication plan. Instead of promoting your products, talk about your company and its history and ability to weather economic storms. This will build confidence in those with whom you do business, both customers and suppliers, which will pay off when this recession ends.
Customer loyalty is built in the tough times, not in the good times. The important thing to remember is that this downtrend isn’t going to last forever. Your business not only thrives on customers but also needs vendors, employees and good communication with all constituents. You need to seek new ways to keep them onside when your competitors aren’t. That, again, means change.
Remember, if you always do what you always did, you always get what you always got. It’s just foolish to do the same old thing and expect a different result.
Change truly is the word of the day, and you can use it to make a difference.
Mack Graves also is president, Latigo Management and Marketing Consultants Inc.
