In the year 1795 Napoleon wanted to solve the issue of food during long battles, he offered a reward for research on food preservation. Finally “Appert” who was also known as “Jack of all trades” came out with a unique solution, he placed food inside of thick champagne bottles. He sealed them to make them airtight and then placed them in boiling water for hours. This innovation helped Napoleon crack the problem of carrying food for the army.
Thirteen-year-old “Jon Spoelstra” used to deliver 50 papers every day. It took him about an hour daily. He analyzed that at least half of the houses he passed did not subscribe to newspapers.
In a few months’ time, he figured out that if he could add more houses his time spent will not increase much but his income would. He started thinking how can I get them to subscribe? He did some research and made a list of people who didn’t subscribe, the people whose house he rode by each day. He mailed a hand-written letter to each family: “I’m the paperboy for the Detroit News. You may have seen me. I ride my bike past your house at the same time every day, rain or shine. I could easily deliver a paper to you, just like I do to your neighbors. There’s a lot of interesting articles in the paper, and I think you’ll really enjoy the Detroit News. If you’d like to try it, just hang the enclosed card on your doorknob, and I’ll deliver the News for a week at my expense. If you like it, I’ll just keep on delivering it. I collect once a month”.
Within three months, he was delivering 100 newspapers in about the same time as it had taken him to deliver 50. He had effectively doubled his pay. A few months later, he tried the same letter on an adjoining neighborhood. Soon he had 150 subscribers, and it didn’t take much more time. For a little extra effort, he was making three times as much.
Jon says “Now, when I see America Online, Gillette, and other companies giving away free merchandise to gain customers, I think: I did that! I thought it up on my own. It seemed pretty outrageous at the time – whoever heard of giving it away”
You would be wondering why and how these examples will help you and why I am sharing them. Generally, during a downturn in the economy (like covid) majority of people enter a shell. The first tendency is to hold payments of the suppliers and vendors rather than thinking like Jon Spoelstra or Appert and seizing the opportunity and come out with a sustainable solution.
Think over it,
· Slowing down payments of suppliers or creating synergy and building a business that can help you face any crisis?
· Spoiling relations with suppliers or create goodwill that will help you get their unconditional support?
· Pushing your suppliers to scout new distributors and create more competition for you or using their strengths to help you expand business (your business)?
On the flip side, it would not be wrong to say that your competitors would be in a shell (during the downturn), and why not go all out and seize the opportunity.
Very interesting Vikas