vides only one element in a buy/sell envi-
ronment to leverage one’s position and
that’s price.
When customers see you as a provider
of a commodity, profits suffer. The value
of the paint and coatings industry has
fallen 38% over the past 35 years compared to the Consumer Price Index
(CPI). Why? Paint and coatings companies are reactive during the decision-making process. We are not viewed as
proactive customers/partners. As a
result of our collective inaction, we have
achieved exactly what we have been
working so hard for over these past 70
years—mediocrity.
Along the value chain continuum—
including resins, additives, pigments,
leveling agents, etc.—there is only a
handful of non-commodity, specialty
paints and coatings that exist today. This
needs to change in order for our industry
to grow profitably.
On balance, we haven’t changed
much. Our means of paint and coating
manufacturing, technical and market-
ing methodologies, communications
“People who cannot invent
and reinvent themselves
must be content with borrowed postures, second-hand ideas, fitting in
instead of standing out.”
—Warren G. Bennis
and servicing our products, have not
changed significantly over the years.
While we now use computers, they are
primarily used only to control the
same batch systems we’ve had for
years or to spit out reports and presentations faster.
REPOSITION
Have we invested in accurate intelli-
gence gathering at all direct and
indirect positions in the value
stream? Have we invented anything
really uniquely new to the industry
that potentially sets the segment targeted in a new direction? Have we
earned the right in trust and loyalty
with our targeted customers, working in parallel, to make joint presentations to their customers generating
creative ideas on how best to serve
them, thus establishing ourselves as
a significant “go-to” value while,
developing greater competitive barriers in the process?
Yes, it’s a fact, this proactive value-repositioning strategy approach, properly executed, will increase costs per target
customer on the short-term, and not all
of your customers can be accommodated,
but in the medium- and long-terms, it
will pay off. We’ve seen it work!
As we witness the “Twitterification”
of our society, we cannot perform along
the same path we have in even the
recent past. It’s time for us to see
beyond the common perceptions of the
past, approach and participate in our
industry from all the angles within
which we exist. CW
LOCATION LOCATION LOCATION
When it comes to fast
service, location means
everything. Our MIN-U-SIL®
and SIL-CO-SIL® Ground
Silica are shipped
daily from FIVE
convenient mining
and processing
locations.
O T TAWA, IL
PACIFIC, MO
MILL CREEK, OK
COLUMBIA, SC
BERKELE Y
SPRINGS, WV
http://www.u-s-silica.com
(304) 258-2500 } FAX (304) 258-8295
P. O. BOX 187 } BERKELE Y SPRINGS, WV 25411
Call (800) 345-6170