Recession busting
Despite a regular diet of dire economic news, many of the FPB’s members are successfully
riding out the recession – while for others, help and advice is at hand
I
t’s an ill wind that blows nobody any good buying from a reliable supplier – who will
– and despite the icy blast of recession remain in business long term – than from
sweeping the UK, the saying seems to be one that appears desperate by slashing
holding true for AC Fixings. The company, prices.
based in Chelmsford, Essex, was founded It’s advice that another FPB member,
in 1990, but enjoyed its best month ever in Caerphilly-based South Wales Monuments,
December – and this despite being a supplier to has been following instinctively. The company,
the ravaged construction industry. which makes and sells memorial headstones,
AC Fixings had the good fortune to be in saw the recession coming in mid-2008, but
‘the right place at the right time’ when last responded by driving up customer service
year a local competitor, The Tool Box Shop, – and increasing its prices.
succumbed to the downturn. “Although they “The whole point about a recession is that you
were competitors, we’d helped them out in the have to stay positive – the economy stops because
past,” says John Pringle, AC Fixings’ joint everyone stops spending,” says John Styles, who
founder. “When they closed down they offered us founded the business 26 years ago. “I told my
all their stock and allowed us to take over their team that we weren’t going to put up with this
phone number.” negative attitude.”
AC Fixings seized the opportunity, opening Mr Styles has galvanised the company’s eight
a retail outlet of its own, in addition to its two staff into following up every possible sales lead,
existing warehouses. The company, which however small, and providing them with a sales
employs six people including the two founders script for fielding enquiries from the public. He
and has an annual turnover in excess of £600,000, has invested in a new part-time administrative
saw sales perk up as former customers of the Tool assistant to allow himself time to visit more
Box Shop beat a path to the new premises and funeral directors, who are the firm’s biggest
were cross-sold the two companies’ combined customers. And he has invested about £6,000
range of products. in creating a more comfortable and welcoming
Mr Pringle says his company is far from new sales office.
immune to the recession. It supplies a vast “We’re more positive about what we offer.
array of brackets, hinges, rails and ramps, and We’re polite, compassionate, helpful – we
has been badly hit by the collapse in house really look after people at a time when they’re
building, while the harsh winter weather has vulnerable,” says Mr Styles. “We listen to what
also dampened demand for its products. But our customers want, often putting together a
it has been bold and quick-witted, not only package for them that includes insurance and
snapping up the expansion opportunity when maintenance of the memorials. We sell on the
it came along, but also targeting commercial, value of our service first – price is secondary.”
industrial and local authority customers to So far the strategy has paid off. Despite
compensate for the hit to housing. (See ‘Ask the the number of orders being down – by 15%
experts’ on page 8 for advice on public sector in January, for example, as even the bereaved
tendering). have tightened their belts – the value of those
While chasing new business is a natural orders has risen, resulting in a turnover of
response to a slowdown, Professor Neil around £500,000 and a healthy bottom line.
Rackham, a leading UK sales guru, warns of the It is now planning cautiously to expand, probably
‘three deadly sins’ of selling in a recession: through new sales outlets or agents, and through

Chasing too many opportunities. Smart
its website, www.headstonesonline.com.
companies will focus their time and
Mr Styles, now 60, has been in management
resources on their best opportunities, rather
since he was 22 years old and keeps a firm grip
than dispersing their efforts on business they
on his business’s costs, margins and, above all,
are unlikely to win. Prof Rackham quotes a
cash flow, chasing debtors and running special
Chinese proverb: “If you chase two monkeys
offers to shift stock that is slow to sell. He is
at the same time, both of them will escape.”
focused on what he describes as ‘the practical

Negotiating when they should be selling.
control of working capital’, moving as quickly as
Many companies and individual salespeople
possible through the cycle of selling, invoicing,
will make concessions too soon in the
collecting payment and re-stocking with the
sales process, which gives an impression of
most popular lines.
pushiness or anxiety, creating mistrust in the
“Small businesses often fail to understand
buyer. “In hard times, trust is vital,” he says.
the key financial ratios,” says Mr Styles. “They
“Smart companies negotiate little and late.” should be more like craftsmen and know exactly

Selling on price, rather than safety. In a
which tool to pick up at any given time – it’s the
recession, buyers are more concerned about manager’s job, not the accountant’s.”
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