Yesterday, Warren Buffet wrote an Op-Ed for the New York Times. In it he shared the simple rule he uses for investing, “Be fearful when others are greedy and greedy when others are fearful.”
Its simplicity is obvious when applied to the volatile stock market during these turbulent economic times. But it has application in other areas as well.
For example, think of your own commercial segment foodservice business. Many of your competitors are so fearful of what MIGHT happen that they have begun to corral their marketing and promotional support while they wait it out. This can provide a huge opportunity for YOU to gain market share, and cement relations with the accounts you may share with your competitors. Customers need MORE support now, not less. So give it to them.
Yes, I know that you are probably experiencing some of the same challenging cost issues as your competitor, but you still have product don’t you? Your plants are still in operation, aren’t they? Get out there and meet with customers, be aggressive, and be sensitive to their needs. Customers, likewise, have dialed back some of their expectations, so use that to your advantage to negotiate a stronger position with them, while gaining share during this downturn. Remember Sun Tsu: “The enemy will attack at the first sign that it senses fear.” Exude confidence and optimism in your dealings with customers, uncover their current needs, and present them with creative solutions. You’ll both be better off for it.
These next few months (years?) will not be easy on any of us. But when the economy begins to come back, your customers will respect your loyalty and return it in kind. Your business will return to health much more quickly, and your market share and brand strength will pay longer term dividends.
So in the context to today’s “market fear,” greed is good. Take it from Warren.