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How are your shoes holding out

Posted by Philip Smith on 5 April 2017

My shoes are special

Indeed they are, but not in any way you might think. They look good enough but are not a fashion item.
They are not made from some exotic material by pigmies in the Amazon rainforest, who only cobble during the full moon. They are not hugely expensive but are not cheap.  So what on earth makes them special and why should you care?

As a firm believer in always trying to learn from experience and interaction, I go around asking questions and sometimes irritating people, but at times I receive some valuable lessons imbedded in the answers.

I have been wearing my shoes for about sixteen years, not the same pair but the same brand, size, style and colour. They last about two years as I wear them most of the time and when a new pair is required the old ones are demoted to gardening shoes.
 
During all these years I accepted that I could only buy these shoes from a few shops and they often did not have stock. One would expect a shop to stock items that are consistently in high demand, but in this instance the assumption would be wrong. I have learnt to order a new pair before the current shoes are worn out.

On one of these occasions, where the store had no stock, I engaged the sales person in a conversation as to the reason why they had no stock.

Now before we get to the interesting bit, some more information on the shoes.  The price has moved up over the years but not dramatically so.  The manufacturer produce a number of different models all fabricated from amazingly soft leather and consistent quality and fit. No variations, the same product delivered to the same outstanding quality, consistently for sixteen years is not what we have become accustomed to.  We expect quality to vary and corners to be cut to reduce cost. A 50gm packet gets a makeover with new slogans and packaging and the "new improved" item comes out at 45gm and before we know it we are down to 30gm.

Back to the shoes, this is what I learnt about the stock position and it explains everything while also teaching a few valuable lessons.
  • The manufacturer is an Australian family business.
  • They do not manufacture shoes to order.
  • They have no desire to take over the world
  • They supply only a limited number of outlets
  • They make the same model shoes, no new models on the drawing board.
  • They manufacture to the capacity of their facility and have no desire to expand it.
  • They are brilliant at what they do and only used material that conforms to their quality standards.
  • They maintain a spotless quality standard for finished goods.
  • Outlets can place orders but the manufacturer decides who gets what allocation each month.
  • Should they feel like it, they close down for a month and take some time off.
They are running a business where demand exceeds supply all the time, but will not follow the trend of constant expansion.

They have created a range of unique quality products, established a loyal customer base and have set the rules for supply. They refuse to "tinker" with their products or ramp their business and staff up and down to accommodate variable demand or economic cycles.

To me this sounds like a good way to structure ones business, even if we cannot directly replicate this model exactly.

 

 

Philip SmithAuthor:Philip Smith
About: Philip specialises in getting projects and businesses that are not performing as well as expected, back on track.
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