The One Who Bid’s The Lowest Get’s To Bleed


I meet with a metal stamping company today and the CEO said something every interesting to me. He said “We don’t go after the high volume lower margin products like automotive, we go after what no one wants to do and we do that. The one who bid’s the lowest on the high volume jobs get it but many times they are just bleeding slowly from a financial perspective.”

Two thoughts came to mind when he said this:

1) It’s good that you’ve found a niche
2) How do these companies differentiate them self other than price?

Find a niche:
To find a niche you have to know the industry but there are a couple of factors that repeat themselves across most industries. Highly customizable short run products are a great niche market. If you do go after this market then you have to be aware of not only price but deliver times, quality, and very high complexity. A Lean Business System can address all three of these needs and is highly recommend if you are expanding to new markets.

What differentiates you:
How do you set yourself apart when you bid on projects? Is price the only thing you have to offer? The one unique part of you company that cannot be duplicated is your people and your culture. How is your culture different form the competitions? Is your culture a by product of focusing just on the bottom line? Do you have a culture that fosters growth, new ideas, and innovation? How you you differentiate form the competition?

A Lean Business System is a great way to both address a niche market opportunity and to differentiate yourself from others weather it’s through online delivery, innovation, continuous improvement, or just lower employee turnover rate. Are you just slowly bleeding when you get low margin jobs? How do you deal with the competition?

For more information on Lean Business Systems or other questions please contact us.

Related posts:
Combining Lean With Emotional Intelligence Case Study
The Missing Link To Lean Six Sigma – Emotional Intelligence
Friday Factoid – Culture = Profits
Motivating Employees Without Money

Call 615.852.LEAN[5326] and Follow on Twitter and Facebook.