Many years ago, I met the CEO of a mid-size meat company to discuss how he could improve his business - it had always struggled to make much money.  Having had the guided tour and talked to the CEO, I had seen a very smart operation.  The farmers who supplied the animals were specially selected, as were their breeds, to provide very high quality animals.  The killing process was designed to avoid any animal distress (stress toughens the meat).  The cutting and packing processes produced excellently presented chef-ready portions. Higher input costs were heightened by small volume; however, their gourmet products should attract premium prices from restaurants, hotels and independent supermarkets in wealthier suburbs. But for some reason, their sales and delivery drivers struggled to sell their product for any premium above the bigger players, who competed primarily on price.   They had a good story, so why couldn’t they achieve that higher price?

By pure luck, the small management team - all men - were having dinner together that night, with their wives.  I was staying in the small country town overnight, and I was invited to join them. As we got to the pudding course, one of the executives asked me what thoughts I’d had after my short initial visit. This got the attention of everyone round the table.  I did the classic consultant trick, and asked them what they thought the problem was.

There was much grumbling about competitors who’d sell at “unfair” prices, “unreasonable” customers not appreciating the value of the product, and “poor” sales skills among the driver reps. After a few minutes of this, one of the women, who’d not said much so far, said very tentatively “The delivery trucks are dirty”. This got blank looks, and the sales director asked incredulously “What’s that got to do with it?” She explained. “The trucks are always filthy outside. You never wash them.  You look cheap.  Why would anyone pay you any more?” This got some nods.  Then another of the women asked “How many of the reps know how to cook?”  After some jokes about men and barbecues, she asked rhetorically ” How can you sell a gourmet meat if you don’t know what to do with it?”

You can see where this is going.  One the ball was rolling, everyone started suggesting ideas to not only fix the problem but also increase real value to customers.  Within a year, the business was transformed.  A successful restaurateur joined the board of directors. A consultant chef developed a driver rep training programme, which became compulsory for everyone  who worked in the business (their spouses could attend as well).  He also developed new cuts and recipes. Customer training days were very popular and earned extra income. Achieved prices went up, as did market share.  And the driver reps’ last job every day was to wash their trucks.

They had simplistically accepted their customers’ comments about being “too expensive” without probing deeper. The business was obsessed with product and production, but hadn’t thought to ensure that their sales process was consistent with and enhanced their market offer.

Sound familiar?