Issue 224 - Jobbing on the rise. Can you profit?

As the recession continues to force food businesses to find more and more creative ways to grow their profits many are looking to jobbing (selling off the truck) as a potential solution. The positives: increased upsell opportunities, high levels of customer service, the ability to reach customers that are "too small" for warehouse based distribution. The negatives: An administrative nightmare as all your back-office and warehouse work becomes the responsibility of the driver. Let's look at what you need to do to profit.

So we don't offend anybody by naming names in our industry, let's take a look outside the food business at a company that has elevated jobbing to an art-form. You might have heard of a little company called Snap-on. Long time jobbers of automotive tools, Snap-on has pushed the envelope in jobbing to create "mobile stores." Take a look at one here.
Snap-On Jobbing with Mobile Stores

Why do they do it (and why might you)?

Because people like to be able to see and touch (and in our industry taste) what they are buying.
Because a shiny new tool sells itself (just like a good looking ham.)
Because having the tools on hand saves the company the cost of delivery.
Because when VALUE is right in front of your customer's face they don't argue PRICE.
Because there's nothing like an in person sales visit to break new territory and find new customers.

What should you watch out for?

Order Management and Invoicing on the Truck
Inventory Management (especially with multiple trucks/warehouse interaction)
Maintaining Accurate Customer Pricing, Account Balances, and Cash Collection
Tracking your Costs and Sales accurately to MAKE SURE YOU ARE MAKING A PROFIT.

How do they handle it?

Snap-On uses an on-board computer system to provide on the truck control. If you don't happen to be lucky enough to have the backing of a major corporation when you're assembling your truck fleet you're in luck. With the advent of the netbook and the decrease in costs of mobile printing you can put together a truck computer solution for a lot less than you might think (I've seen it done for less than $700).
Of course all the hardware in the world won't help you if you don't have a business management solution designed for the food industry and for jobbing. Make sure you review your system for a fatal flaw before attempting to job. Snap-On of course is using software geared for their automotive tools, you won't see them fiddling with some generic accounting package.

Ambrose Bierce is credited with the idea "There is nothing new under the sun but there are lots of old things we don't know." As you start looking for "new" ways to profit during this recession be sure to look outside of the immediate reality of the food business to other industries. I'm sure someone else has said it before me but I'll try to coin a phrase here... "It is easier to learn from your mistakes but more profitable to learn from someone else's."

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