In crisis, see opportunity

There is a customer who has been cooperating with us for a long time. Since the contact in 2009, the company has been growing, especially after the general manager was changed in 2013, it is booming. Compared with 10 years ago, their product line has expanded from 3 to 16, and the annual purchase amount has increased by nearly 20 times, reaching about 40 million US dollars. Especially in the three years of masks, their orders are still very stable, and even rise against the trend. Some time ago, the general manager of this company told me that the sales volume has suddenly increased recently. I don’t know the reason, but he will find out the reason. Yesterday Manager Tess wrote an email to this client, mainly asking him three questions:

1. What measures have been taken to make a small company grow rapidly?
2. In the past three years of global economic downturn, how did you survive the difficulties?
3. Have you found the reason for the sudden increase in sales recently?

The customer quickly responded to me. After reading it, we think wecan share it with all business people, because it is of great reference value.  

After all, in the 21st century with deepening globalization, business does not respect borders.

Questions and Answers as below:

Q1:What strategy did you develop to make a small company growing quickly ?

A1: I have adopted strategy of cutting non profitable skill labor( plumbers) – now we ware working with sub-contractors, I do management of cash low and financial arrangements they do the work, strictly selection of the suppliers( company didn’t know even the real name of factories) ,  price negotiations very hard directly with factories, where is was case we cut the contract, visiting by my self-suppliers premises, after first visit I cancel the contract of 5 suppliers !!!( they even do not know where factory it was located);

I have resigned the contract for credit lines, XXX（customers’ company name） paid 30 % interest rate(2013)  because no assets to be warranty for credit lines, now we have credit lines with max 10 % interest rate or sometimes with 1 % interest rate , but we have many assets backward master credit lines.

There are many, many issues , I need to make large email, for example: in 2014 fired all the employees (2014), they were lazy and liars, they didn’t accept the change I imposed for all company departments, I hired 20 new people, fresh people willing to work and have above average income, now I have a team of 40 employed, motivated, serious, interested in the good running of the company, starting 4 years ago, I paid them 14 salaries instead of 12, a Christmas bonus salary, an Easter bonus salary, I offered them a hot meal on day, we created beautiful and elegant working conditions for them, all of the above contributing to the increase of involvement at all levels of activity.

I have re-certified all products with help of suppliers, I have registered at OSIM 5 brands, I made many, many marketing activities, leaflets, catalogues , actions on Facebook, Twitter, etc( only for this I paid 150.000 eur) , I opened 3 online shops, etc.

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Q2. In the past three years of global economic downturn, how did you survive the difficulties?

A2: In XXX business decline it wasn’t very aggressive, during Covid restrictions we increased a lot, many people cancel holidays, travelling and decide to change HVAC system in the home, enterprises, I have observed this trend and  did bigger acquisitions for having stock, especially from Midea, TCL and Haitai, having stock enough when other companies where afraid to invest, gave very big potential of sales to XXX, I wasn’t afraid of pandemic, I have adopted KISS law, and finally I have seen that my strategy it was correct and fruitfully .I was thinking like this : if it is worst environmental for leisure must be opposite for other activities: people need heating and cooling, especially when they sit only in home!!!

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Q3.Have you found any reasons for the sales increasing recently?

A3:The reason of sales is coming from two opportunities , missing stock of Ariston and Ferroli and entering two big mega-shops ( they just order 800 pcs XXX) , and one of our competitor died ( I mean the main shareholder die and no one continue the business).