The Gods Must Be Crazy

“Unexpectedly, the banks curtailed loans and, in Europe, ceased to authorize lease agreements, a fundamental tool for machinery sales. From one day to the next, sales just stopped. Not because the market died, but because of lack of in-shop liquidity and the cessation of bank loans.” — Brigitte Hunt, Exhibition Director, Viscom Italy
 

In the film, The Gods Must be Crazy, writer and director Jamie Uys tells of a remote, nomadic tribe that once lived in a simple, self-styled, utopian community. The tribe had no wants, nor did any person own property. Its gods provided everything. One day, however, a random tourist tossed a Coke bottle from an airplane window. It landed near the nomads’ camp. The bottle became a new, extraordinary item that, significant to the plot, could not be shared. Thus, for the first time, the tribe suffered from jealousy, envy, anger and even violence. Finally, one young man, Xi, decided to rid the tribe of the bottle, the source of dissent. Alone, he set off to throw it off the Earth’s edge. The story follows his problematic trek.
Fast-forward to the latter part of 2008, and see the U.S. as the utopian tribe. We had Best Buy, Outback Steak House, Toyota Camrys, Walmart and more. Our gods provided everything. Unfortunately, our figurative Coke bottle – “The Great Recession” – took an economic form. Nor did it land nearby – it fell heavily into our laps.

So, how do we throw the damn thing off the Earth’s edge? We can’t. Perhaps the better question, then, is how to proceed. To obtain various ideas and solutions, we asked questions of several industry executives: Dave Goward, Roland DGA Corporation’s president and CEO; Steve Urmano, Mimaki’s marketing director; Steve Ball, GraphixDirect’s CEO; and Brigitte Hunt, Viscom Italy’s exhibition director.
 

To what extend do you see the national economy gaining or retreating in 2010?
Dave Goward: We expect both ups and downs in 2010, but nothing dramatic in either direction. Remember, the world’s still experiencing an economy in crisis. A statistical end to the recession means more to the politicians than it does to us and, especially, our customers, who are left to deal with a tight credit market and a reduction in demand for their services. That said, our sales have been steadily increasing over the past few months, and we expect this trend to continue into next year.

Steve Urmano: We are cautiously optimistic. We’ve seen some recovery in volume, in the low end. It’s still not consistent each month.
Steve Ball: We expect a 15% gain over early 2009.

Brigitte Hunt: We expect gains, but not to the 2007 level. We’re all facing a new business climate, so it’s hard to say what form a new business model should take, or how long the recession will last.
 

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Do you detect any clues that support your gain/loss convictions for 2010?
Dave Goward: We all read the same newspapers, thus, I have no more insight into the economy than the professional, financial pundits. We read everything we can get our hands on; we watch the economic indicators; we talk to customers, peers and business associates, and, at the end of the day, estimate what’s going to happen to the economy in 2010.

Steve Urmano: High unemployment says recovery will take a long time. If unemployment drops, we should see growth.
Steve Ball: I see the software business improving, and this, usually, indicates improved printer and cutter sales. Also, my customers with multiple, design and production software seats are upgrading their software, another positive sign. I’m also seeing customers look for new applications, and this says they, like all of us, are looking for new revenue sources.

Brigitte Hunt: The first positive signals were during Viscom Italy 2009, in November. There, visitors stopped talking about the crisis and were ready to discover, and buy, new products. Exhibitors were signing contracts again. Interestingly, Viscom also revealed new visitor categories, people who, due to the crisis, were exploring new revenue sources.
 

What did you learn over the last year that will help your company thrive in the coming year?
Dave Goward: To never underestimate the resiliency of our employees and their desire to do a good job and take care of our customers – regardless of what is happening around them.

Steve Urmano: Watch expenses, but invest in marketshare-related activities.

Steve Ball: Conserve cash; manage inventory; stay close to the customer; know what your customer needs before they ask.

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Brigitte Hunt: If the world business model has changed, we must – and did – change our traditional, exhibition model.
 

For 2010, what critical philosophies has your company adopted, to assure its continued success?
Dave Goward: Stay the course. While it was necessary to make some short-term corrections this year, our fundamental, long-term plan is unchanged. We have a solid company with a solid plan in place, and we will continue to grow and prosper, in step with the rest of the economy.

Steve Urmano: The boom time is over, and now we have to work hard on phase-two growth.

Steve Ball: Become a specialist in niche markets and have solu¬tions for specific needs. We’re expanding our software-based solutions, with quick response support. SaaS [Internet-based, service-on-demand software] will become increasingly attractive to the graphics and sign industry.

Brigitte Hunt: We restructured Viscom Italy 2009 to make it more enriching. We’re offering attendees programmed, “face-to-face” meetings with our present or future suppliers, to allow them to learn of new technologies, see new products, ask questions, overcome objections, access new markets and applications, and develop and strengthen relation¬ships with existing and future suppliers.

 

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