Friday, November 28, 2008

Hunters and Farmers

Some time ago someone unknown to me coined the term hunter and farmer to classify types of salespeople. In terms less kind, Scott Alexander, in his classic sales book “Rhinoceros Success”, separated salespeople into two categories, farm yard animals and jungle animals.

Rhinoceroses are formidable

Alexander noted that farm yard animals are fenced in and are content. They enjoy the security of the farm. While jungle animals are out in the wild, on the prey, moving quickly, trying to win the day by being faster, stronger and cleverer than their opposition. He paints a picture of a 3,000 pound animal with thick skin on the run that is just about impossible to stop.

There really are hunters and farmers

In the real world, my world, there are farmers and hunters. I see them every day. There is nothing wrong with being either, or a mix of both, until bad times arrive.

What happened?

In the beginning of their journeys, all entrepreneurs were hunters. They prowled the jungle for new business and, more often than not, bagged the big ones. As they established their businesses, they had less time to hunt and were required to spend more time farming their customer base for the next repeat order.

Automotive suppliers and their dilemma

The farming phenomenon is amplified when doing business in Detroit. In the automotive supplier category companies are required to pay close attention to their existing customers in order to keep orders flowing and customers satisfied. A handful of very big and profitable customers are hard to land and easy to lose. Smart entrepreneurs changed their ways once their hunting days were over. Farmers they became. Relationships and customer service drove and maintained business. They also prospered.

Nothing wrong with farming until the bottom drops out

Something happened to the domestic automotive business over time. There is nothing good to report. The bottom of the business, particularly in the Detroit region, has officially dropped. Not quite out of site, but dropped nonetheless. The industry is in a pickle. Automotive suppliers and everyone benefiting from their legacy of success (read my last post) are trimming, cutting and closing. It is ugly.

The cheese has moved (another favorite book of mine)

There is a core of automotive suppliers that are strong and tough enough to keep their doors open while making the changes required to continue their operations. Specifically, they will regroup, retool, plan and move forward. There is going to be a new economy and they understand that they will have to work their way back for the chance to play in new industries and return to prosperity.

They don’t know how or forgot how to hunt


These struggling companies need help with change. They understand that they need to change. Change means finding new customers in different industries, to replace their lost automotive business. The domestic automotive industry will never be the same and it may go away for ever. In order to land new business they need to get back in the proverbial jungle and hunt for new opportunities. It is sad to say, but most of them don’t know how or forgot how to hunt for new business.

Help is here

I’m happy to report that our federal, state, county and local governments, coordinating with our network of colleges, universities and service organizations are doing everything they can to help individual companies survive. They have programs, training, hands on and self-help initiatives and sometimes financial aid to help struggling companies, particularly those harmed by unfair trade or the decline of the domestic automotive industry.

Is it you?

If I have just described you, and if you need a helping hand, contact me. I can help.

dave@davebilbrey.com

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