Although house trained I was never really designed to be an office wallah but presently I seem to be permanently shackled to a desk. In the current marketplace it is vital that we constantly review what we do and how we do it.
This is developing into a fascinating exercise a bit like spring cleaning except its autumn. One of the bigger tasks has been an in depth review of customer accounts which has not been done for a while. It has been very rewarding to confirm the quality of our customer list overall, many of whom have been with us since Consols earliest days.
Some of our stalwarts have passed away, moved house or switched to mains gas which has become available in some parts around here over the last few years. Many of those that have moved house have recommended us to the new occupiers, there is a real sense of continuity, especially when the former occupiers use us at their new address.
We found the expected cobweb festooned vault of miscreants who have misbehaved and abused our goodwill over the years, some of whom have attempted to sneak back into the fold under our radar. I have to rather sheepishly admit that despite our best efforts a few of the blighters did succeed.
Continuing on we next reviewed the profitability of all accounts. Starting from the baseline that we are a numbers driven organistion we examined those accounts that whilst conducted in a generally satisfactory manner were for various reasons not profitable.
In the light of relentlessly rising costs we have taken the view that for better or worse we set the prices not the type of customer who takes great pride in driving a hard bargain. My take on the issue is that I cannot visit Tesco and tell them what I am going to pay for my groceries, neither can I decide to pay for them 7 or 8 weeks later after numerous polite reminders. My refusal to countenance this type of approach to business is not detrimental or anti competitive, it merely highlights the customers freedom of choice insofar that there are alternatives for all concerned.
I cannot accept that a a bolshy type who treats every transaction like a minor war zone should enjoy better terms than a customer who is a pleasure to deal with, accepting the posted price and paying promptly. Neither can I accept that it is necessry to front load the posted price to provide wriggle room to accomodate those that insist on “negotiation”. With this in mind we have taken the somewhat radical step of reviewing and closing this type of account on the grounds that we cannot afford the dubious privelidge of servicing it at negative margins.
The positive outcome is that we have hopefully walked away from a tranche of business that is simply too troublesome and time consuming to be involved in. No doubt the zombie distributors that always offer to match the lowest quote obtained will welcome this business as much as we are glad to be shot of it.
With the swingeing price rises showing little sign of slackening we are eagerly awaiting the installation of our state of the art new tank guaging and stock control system. This is seen as a vital new tool to update our hitherto relaxed attitude to stock, a legacy of the time when oil was cheap enough not to worry too much. The days of kicking a storage tank to see how loud it rattles are long gone.
These anecdotes are typical of the steps being taken to adapt to the rapidly changing circumstances brought about by world events that effect even a small company such as Consols at local level. The ability to be pro active in the face of rapid change gives me a fair degree of confidence that trimming the sails will keep us firmly on course for continuing success and growth.
The absolute certainty is that life at the coalface will continue to provide surprises both good and bad whatever transpires.
