Chapter 3 - Have I got a suggestion for you!
Well so much for a slow introduction to January, its been a busy couple of weeks and here's hoping it will continue for the rest of 2017. We are nearing the end of our Valley Venture accelerator program graduation is on the 30th of January, and I thought it worth sharing a couple of insights.
We become involved in the program as a way to network and learn from our peers about how we could significantly increase our business. On the negative side there are unfortunately no magical fixes, but there are some pretty magical outcomes.
As part of the course we where advised / pushed / motivated to talk to our customers both potential and current to understand their issues and challenges, so that we could better understand our opportunities.
One of the biggest learning experiences was finding out the secrete of getting new customers. When we talked to our customers and asked them how do you find new customers and suppliers, the key response was we ask people we trust for recommendations. Specifically the key role of referrals, and getting into the habit of asking for them is very important. Having learned in the past that what gets measured gets done, we have started to track referrals.
Lets see if this measurement correlates to increased sales......
Volo Aero MRO is an FAA and EASA certified repair station providing brilliant machining services to our aerospace partners. For more information please visit our web site at www.volo-aero.com
Tuesday, January 17, 2017
Tuesday, January 10, 2017
Understanding your customers to deliver Value
We are all familiar with the three requirements of customers, FAST, Quality and Cheap and the saying you can have any two of the three. We smile knowingly and nod our heads, the one issue with this is that the customer really does want all three.
As a participant in the Valley Venture Manufacturing accelerator program Volo Aero MRO has been tasked with developing and better understanding our customers. Letting you into the big secret, we talked to our customers and asked them! I know a shocking peice of insight so keep this little gem to yourselves.
Does Cheap equal Low Cost ?
In the aerospace market particularly in repairs and also in grinding for new manufacture there is great pressure to deliver as quickly as possible with zero defect and we compete in a global market. So when customers talk about the lowest cost does this mean falling into the lowest price point? Our position is that when you are left negotiating on a price point you had better be in a commodity market with the lowest cost production base, or you need to change the discussion.
Well we are based in Massachusetts, not globally known as the lowest cost of operation on a global market so e take a different approach. We will provide Fast turn times, Zero defect quality and VALUE. we cannot provide the lowest price but we can provide the best value.
So what is the best value that you can provide a customer? Any guess who can tell you that........
Pick up the phone , get in the car, get out of your workplace and go speak to your customers, they have the answers.
Volo Aero MRO is an FAA certified repair station based in Massachusetts, we provide brilliant precision machining solutions to our aerospace partners. Delivering capacity and capability they can trust every time. For more information please visit our web site www.volo-aero.com
Thoughts from a small Business Chapter 2
Ramblings of a January morning
As time progresses in the world of small business I am constantly learning and developing what I beleive is the best way to run Volo Aero MRO. Through my working life I have worked with a great many individuals, coworkers and managers and there is a lot I have learnt from doing myself, failing on my own (and with others) and seeing how other people work. The leasons that can be learnt from watching others is truely a gift- even if all it shows you is what not to do!
Throughout my working history I have spent a considerable time with customers, getting to know them on a personal level and getting to know thier fears and concerns. The trap I tend to fall into is that once I have learnt something I tend never to question it so if a customer explains thier issues to me 5 or 10 years ago I remember. The problem with this is that things change, you would not expect this to surprise me after all change is constant and ongoing.
A classic example for me was dealing with an OEM cusomer who for years was always driving down price year after year after year, otherwise known as the margin death spiral. Yes a process can be leaned out and improved but there comes a point where incremental improvements are not going to yield significant gain- the process is about as good as its going to get. So whilst trying to figure a way of telling the customer what we could do and could not do to meet there expected request I prepared for the dreaded call.
Well the day came I prepared myself and the call did not pan out the way I expected, the reason was the customer had changed thier proorities, its now all about on time delivery. The customer had reviewed its metrics and realised that its true savings would be better delivered by delivering more engines quicker than saving a few dollars on repairs. A realization that sometimes you need to look at the bigger picture to deliver real savings.
As time progresses in the world of small business I am constantly learning and developing what I beleive is the best way to run Volo Aero MRO. Through my working life I have worked with a great many individuals, coworkers and managers and there is a lot I have learnt from doing myself, failing on my own (and with others) and seeing how other people work. The leasons that can be learnt from watching others is truely a gift- even if all it shows you is what not to do!
Throughout my working history I have spent a considerable time with customers, getting to know them on a personal level and getting to know thier fears and concerns. The trap I tend to fall into is that once I have learnt something I tend never to question it so if a customer explains thier issues to me 5 or 10 years ago I remember. The problem with this is that things change, you would not expect this to surprise me after all change is constant and ongoing.
A classic example for me was dealing with an OEM cusomer who for years was always driving down price year after year after year, otherwise known as the margin death spiral. Yes a process can be leaned out and improved but there comes a point where incremental improvements are not going to yield significant gain- the process is about as good as its going to get. So whilst trying to figure a way of telling the customer what we could do and could not do to meet there expected request I prepared for the dreaded call.
Well the day came I prepared myself and the call did not pan out the way I expected, the reason was the customer had changed thier proorities, its now all about on time delivery. The customer had reviewed its metrics and realised that its true savings would be better delivered by delivering more engines quicker than saving a few dollars on repairs. A realization that sometimes you need to look at the bigger picture to deliver real savings.
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