Industry expert reveals #3: The devil you know might be torturing you
Selim Maalouf
Elite HubSpot Solutions Partner | Solutions Architect & Marketing Manager
In my last post, I mentioned how manufacturing data is hard to come by if you are a vendor looking to prove your worth. Customers hang onto their manufacturing data the same way I hang onto my sarcasm in professional meetings: It is foolish and it never ends well... On an unrelated note, a highly enthusiastic Engineer is looking for new opportunities...
But stubborn customers tend to hang onto more than their data.
I am happy with my current supplier
Seven simple words that strike fear into the heart of your salespeople around the world.
Some salespeople move on as soon as a prospect utters those words, accepting the idea that they can’t overcome a well-established relationship.
From the outside, a well-established relationship can look invincible, but from the inside looking out, it may not look nearly as secure.
Here’s what prospects aren’t telling you:
“I’m not as satisfied with my current supplier as I tell salespeople who are after my business. Sometimes the easiest way to cut a meeting short with a new salesperson is to simply say, ‘I’m happy with the salesperson I’m dealing with.’ But it’s my job to always be on the lookout for a supplier who can give me a better deal. That’s another reason why my present suppliers shouldn’t get too confident in keeping my business.”
Switching costs: Why the USA hasn't adopted the metric system yet
Alright, you got me. Technically, the USA already adopted the metric system (it has been legal since 1866) but it is not yet in use by the general public.
A total conversion would be costly: changing roadsigns, databases, instrumentation, you name it.
But is it more expensive than the current costs that the USA incurs because of its customary unit system? (Derived from the imperial system)
In 2009, NASA estimated around $370,000,000 to switch its operations to the metric system. The shuttle to be launched was budgeted at $759,000,000 and spending half that budget to convert measure units could not be justified.
But what happened to the probe carried by that shuttle, you ask?
I trust you are a smart cookie and can put 2 and 2 together... No? Fine!
The probe came in 170 kilometers too low upon re-entry and burned up in Earth’s atmosphere costing NASA an additional $125,000,000 and destroying the probe.
HOW DID THAT HAPPEN? Aren't NASA engineers supposed to be of alien intellect and can do no wrong?
Well, the root cause of the incident was the use of Imperial values in the landing software written for use with metric values.
The devil you know is not better in the long run
It is ok to admit that you are currently in an abusive relationship with your supplier. If it can happen to NASA, it can happen to you.
But like every abused partner in a relationship, a quick divorce will force you to begin a new life on your own. Small costs to pay for a renewed life without abuse.
Do not get Stockholm syndrome, do not fall in love with your current supplier because you're used to each other.
If your supplier is underperforming, no other conveniences can make up the difference.
Should you keep switching suppliers instead?
As I always finish these blog posts, my answer to this question is: It depends.
There is never a correct answer. Each customer has a situation bespoke to them. Finding the right vendor is a long process of trial and error.
Yes, it might be costly. But once you find the right vendor for you, these costs will pale in comparison to the efficient partnership that can blossom.
But whatever you do, never stick to a bad partner just because they are convenient. Your ideal partner might be just around the corner.
I'm talking about vendor partners... Not romantic partners.
I'm an Industrial Engineer, not a couples therapist.
Have you suffered from an abusive vendor? Share your experience with us in the comments.
Mechanical engineer I help manufacturers reduce downtime and costs
4 年My experience is that there are two types of suppliers : Suppliers of consumables, whose products might get scrutinized with mandatory quality control And suppliers of plant machinery, who might not get scrutinized. As long as the first machine was profitable, the odds are that the buyer will return to the supplier. Regardless of all the work that was put to fix the problems of the first machine.
Mechanical Engineer
4 年Adding to what you said I believe that this will add the competition between suppliers which will fall into the customers benefit from discounts, gifts, privileges etc...?
MES Deployment Engineering at Northvolt | Gigafactories | Automation & Robotics | Vision Systems
4 年We had electrical materials suppliers that started good and turned out bad in the end. Our HOD was fast in switching them. He took the right decision, but i guess we must be aware between bad suppliers and the "not as i excepted" ones, our expectations may not be realistic.