Words from Ron Hollis

During the past 6-9 months, our economy has seen a significant reduction in employees. This is evident in the increased unemployment rate.

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July 2nd, 2009-Unemployment rate at highest level in 26 years
(CNN) — The nation’s unemployment rate rose to 9.5 percent in June, the highest rate since August 1983, according to figures released Thursday by the Department of Labor. The U.S. economy lost 467,000 jobs in June, according to the report.
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Also, in Quickparts we have been seeing this from our loyal customers being laid off and there being no one there to assume their responsibilities. For us, we assess the situation and work hard to find another contact that will take over the role. It is often that a large company will not have really figured out how to handle the changes, which then causes part orders from not happening, thus putting their production lines behind schedule. This can eventually lead to the product stopping, the ultimate revenue killer. Doesn’t sound like the original plan, but who knows these days.

As a consumer I have noticed this problem when I was trying to buy something. It seems that some companies, in their business wisdom, decided to annihilate their sales functional to save money. This is great if you don’t need sales but for the rest of the companies, this could be a big mistake. In the past few weeks, I have had several situations where I hit roadblocks in trying to learn more about a product or spend my money with a company. Just last week while trying to double my gym membership, I was told that since I was an existing member there was not a sales person to help me but the person that checks my access card might be able to help.

It seems this is a death spiral for many companies that have cut their sales capabilities in an economy where sales are critical. It would seem that they should be doubling their sales team and being more customer-centric…at least until we are in a recovery and they can take my money for granted again.