Re: http://gethuman.com/

Posted by Steve Crum on April 01, 2006 at 04:45:52 from (4.156.228.229):

In Reply to: http://gethuman.com/ posted by Dave NE IA on March 31, 2006 at 20:17:39:

I've watched these trends for several years now, quite a sad but interesting chain of events. The general attitude of business big and small any more is to jump as high as you can, make the biggest splash and get out of the pool. We are truely back to the animal way of survival. Outsourcing can be one of the biggest boons to smaller business that ever happened if one is smart and works the fringes. People will always look for service and steady supply, that is a most basic instinct that I see even in my dogs, as long as there's a full bowl of food they are as happy as a clam. Otherwise they would certainly looking for an alternative.
A classic example of this is a local metal fab operation, I knew the owner from the time he started, smart fellow. I would order my base plates and other metals from him. Good service and fair pricing. He started getting bigger, still not a problem, prices inching up, not a real problem, so are his costs, then bang he's big time doing millions of dollars in business with an area fiber optics manufacturer, life is wonderful (for him). For me I'm suddenly a 'nuisence customer', always steady, but only good for 5 or 6 hundred bucks at a time. So his shop time is too valuable to be wasting it on the 'nuisence customers' so lead them on to something else and get them out of our way. Raise their prices and raise their minimum orders and maybe they will not bother us with their 'petty needs', after all we're making millions! Then a dark cloud rolls in, the fiber optic business isn't a big as expected and more of it is being done overseas. Fab shop operator is seeing his millions dwindle, million dollar manufacturing machines are sitting idle more days a week, payments are coming due and the payroll is getting harder to meet. The 'nuisence customer' orders are gone, after all why process 10 orders at $100 each when you can process one $1000.00 order more efficently? Then that 1000 dollar order slips to a 100 dollar order, but the 10 other 100 dollar orders from the 'nuisence customers' have moved elsewhere. Then adding insult to injury the fiber optic manufacturer in a cost cutting move, sends the 100 dolar order overseas. Phone calls are made, that 'nuisence customer' would sure be nice to have back. Million dollar fab owner desides it's time to get out in the field and shake some bushes. What does he find? A few of his fed up former 'nuisence customers' have tooled to get their own work done, and have been doing work for other '$100 nuisence customers' at a fair price and to exactly what they want. What's million dollar fab company owner to do? Limit losses, file bankrupcy, hand out pink slips, auction off and close down due to foreign competition. GAME OVER? Not exactly, there will always be a 'smart small operator' that will see the value in avoiding the temptation to get big, and will remain small and dedicated to his/her loyal customers, he/she may never get 'rich' but will be comfortable with a secure and steady work load and like the dog at the food bowl, as long as the bowl is filled, the dog is comfortable as well.
Whew!
(My new CNC cutting system will be up and running by the end of this month!)
Signed, A former 'nuisence customer'.

Replies:

• Re: http://gethuman.com/ Mark - IN. 07:31:37 04/01/06 (0)

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