It is springtime (on the calendar), and we are looking forward to the return of warm weather and taking on new business opportunities.

In this issue of Springs, we will be looking at how we can respond to global competition with sales initiatives and marketing programs. For many springmakers, sales are either a necessary evil or something we like to do. In the end, how we sell is a reflection on how successful we will be. Some will use outside sales agencies, others will use their own salespeople, and some will handle it with their office staff. The way we sell is not as important as the need to keep selling all the time.

The cost of selling is an important part of our expenses. Some customers expect you to visit them on regular intervals to head off problems and find new ways to service them. Other customers never want to see salespeople because it is “a waste of their time.” Then there are customers who think they need to be “wined and dined” in order to get their business. Whichever kind of customer you have, you should know how much it costs to keep them happy, and they should pay for it.

Understanding the cost-benefit relationship is critical to your business success. Many years ago, I was in a meeting with the company president, and during that meeting, someone from the finance department was complaining about how much money the sales group was spending. The company president responded, “I hope they spend more.” Most of us were surprised, but after a closer look, we learned that for every dollar spent by or for sales, we were getting $20 in business. The president understood his business and how to grow it.

Marketing is much more difficult to evaluate than sales. What is the cost-benefit value of product literature, attending a trade show, advertising or a Web site? In today’s world of global competition, anyone anywhere can create a Web site that makes them look bigger or more capable than they really are. Customers have developed sophisticated supply chain management systems that they believe save them money. Add to this the Internet auctions where suppliers are qualified based solely on the information they submit through an online form, and you have a real problem for a traditional spring company.

As you read through the pages of Springs, we hope you will get a better understanding of how to use sales and marketing to compete in the global market. In addition, this issue has information on what you have to do to be “DFARS” (Defense Federal Acquisition Regulations Supplement) compliant. Springs is only part of what SMI can do to help you meet the global challenge. SMI also has literature, educational programs, surveys, our annual convention and fall meetings to help you succeed. I hope to see you October 9 and10 in Las Vegas at our 2007 Fall Meeting seminars.