Pricing Challenge: Actual Versus Plan

This post originally appeared on INSIGHT2PROFIT.com. Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.   Now that we’re about halfway through 2019, let’s talk about the plan you set for the year. How have you performed thus far relative to your plan? If your performance hasn’t matched your financial projections for this first part of the year, what happened?  Maybe you’ve looked at your financial reports, and you see that your customer or product mix isn’t what you were expecting, or that you have been impacted by tariffs, and your profitability has suffered because of it. That’s a start – having a rough idea of the shortfall – but you need to get to the root causes. Has a shift in your mix driven down margin rates? Are you falling short of plan due to a volume slowdown, or are pricing shortfalls eroding your revenue growth? How does that vary by market segment or by salesperson? Analyzing the gap down to the customer-SKU level can yield clear, actionable intelligence about your problem. Well-run businesses have a strategy, and the budget is the road map to execute it. Planning at the same level of granularity as your sales allows for a healthier understanding of what’s happening within your business, why, and how to act. By having a detailed budget, you are creating a source of accountability for your team and a path for success for your business. Accurate revenue planning and measurement is tough to do, but it’s one of our specialties. Every engagement includes strategy, a client-specific model, a detailed plan and road map to execute it, and measurement to achieve the set goals. All while leveraging our DRIVE technology platform. To learn more about how your company…read more >

Manufacturers: Why Customer Service Is So Important In Serving the Tradesman

By Matt Sonnhalter, Vision Architect, Sonnhalter We’ve talked much over the years about customer service and how important it is to resolve issues. And, we’ve also addressed the issue that customer service is everyone’s responsibility, from sales through tech support. Customer service is really all about your customers’ total experience. This is true in our relationships with distributors as well as contractors. Manufacturers need to be careful, especially when business is on the uptick and attention to detail may come in second to short-term sales increases. Don’t take your distributor and tradesman for granted. There’s always someone out there that can identify contractor’s needs and deliver—and it won’t necessarily be based on price or delivery—but on the total customer experience. This article in HVACR Business by Jim Baston stressed, once again, how important customer service is in the big picture. Jim’s article is focused on the HVACR service business, but his points can be transferred to the manufacturing sector as well. Jim breaks it down into five dimensions of service: Reliability: Your ability to dependably and accurately deliver as promised. Assurance: Your ability to convey trust and confidence. Tangibles: Your personal presentation and the condition of the physical facilities and equipment. Empathy: Your ability to demonstrate a high degree of caring and individual attention. Responsiveness: Your willingness to promptly and courteously respond to customers’ needs. As manufacturers, you need to understand your customers’ (distributors and contractors) needs. Remember that everyone in your company is in customer service. If you haven’t asked your customers what their needs are recently, maybe you should. Things change and their priorities might have too. Focus on what matters to them. If you like this post you may want read: Manufacturers: Are you keeping up with your customers expectations? Customer Service: What Are You Doing to Retain Customers?read more >

Making the Most of a Trade Show Visit

The Precision Machined Products Association has a growing membership of machine shops, technical members and others involved in the precision manufacturing sector. One of the more innovative ways they communicate with current and potential members is through a regular insert in the trade publication Production Machining. The insert is a win-win for both the PMPA and the magazine. PMPA gains an additional way to communicate to their membership, and Production Machining gets valuable content. A perfect example? This recent article on the upcoming IMTS show in Chicago. If you’re heading to this show, or any trade show in the near future, this is a great read. The International Manufacturing Technology Show (IMTS) 2018 is set to take over Chicago’s McCormick Place from Sept. 10-15. The pure numbers of the show are pretty staggering, with more than 115,000 people expected to attend from more than 110 countries and more than 2,000 exhibitors with 1.37 million square feet of exhibit space divided into 10 pavilions, four co-located shows and more than 60 conference sessions. So, like any big task, the secret to success at IMTS, or at any trade show, is to create a number of smaller goals and plan, plan, plan, all while leaving enough wiggle room for last-minute opportunities or challenges. Here are some basic guidelines for planning to make the most of any trade show visit. Pre-Show Book Early – Make sure to take advantage of any early bird specials for registration, not only to save money, but also so vendors have an idea of how many people are attending. It’s also best to book travel, transport and hotel as soon as possible. Stay in the Show Hotel – Sure, it may be more expensive, but it will be close to the show, probably have free transportation opportunities and offer lots of…read more >

Using the Gender Gap to Close the Skills Gap

As the focus on the skills gap has grown, so have efforts to draw women into these well-paying, career-path jobs. Along with technology and training advancements, so are the opportunities and accessibility to these previously “men only” careers. It’s taken root in elementary schools, where “Girls in STEM” efforts have seen expanded class offerings. No longer is it “Girls in Home Ec, Boys in Shop” as even local media have noted. (https://www.wkyc.com/article/tech/science/girls-in-stem/girls-in-stem-betsy-kling-explores-welding-so-much-more-than-heat-and-metal/95-550149660 ). Manufacturers have taken note too, with Lincoln Electric launching a line of women’s welding gear with Jessie Combs. Increasingly, training centers themselves are targeting women, as this recently developed infographic called "Breaking the Status Quo," from RSI, The Refrigeration School shows: https://www.refrigerationschool.com/wp-content/uploads/women-in-hvac-career-guide.jpg (click image to enlarge)    read more >

Industry Trade Association Addresses the Skills Gap Issue

Today’s guest blog post comes from Precision Machined Products Association (PMPA). More and more industry trade groups are organizing to address the skills gap, and PMPA has certainly been in the lead of that effort. Just last year they launched MFG, an online one-year certification and job training course for its members that allows companies big and small to have a consistent, accredited training program. Here is the post, which also appeared in Production Machining. Training the Next Generation: The Need for Professional Development Establish a training program that identifies the necessary requirements to be fulfilled. Professional development and staff training are important to the success of every shop. Professional development ensures employees maintain appropriate certifications, knowledge, safety and ethics in the professional environment. The goal of professional development is to have a qualified staff. Qualified employees have the skills needed to deliver the highest quality of service to our customers. This can be accomplished by establishing training programs, workshops and ongoing educational opportunities. This benefits the company as a whole by improving productivity, culture and customer loyalty while helping employees achieve their highest and best performance. Establish a Training Program Establish a training program that identifies the necessary requirements to be fulfilled. Safety training, technical competency and performance techniques are all possible deliverables. By providing this kind of training, the company can feel comfortable knowing they have improved staff knowledge leading to improved performance from their employees. Better performance means improved safety, quality and customer satisfaction. Training improves competency, so it improves performance and trust. Improved trust improves teamwork. Everybody wins. Why would you choose not to establish a training program? Administer the Training Program Identifying training needs is the first step. Administering a program to provide the training, testing that it has been effectively learned, and tracking training…read more >