PC Retail

Since writing the last comment for this column, Keith has put on his walking boots for a long mountain trek over the Pyrenees – something he has wanted to do for years. So in his absence, as a director of the PCA, I have been given the opportunity to write this column!

The first thing I want to consider at this time is just how good or bad business is and how rising prices are affecting all types of business. Do we have a recession or is it – in political speak – just a global slowing down of demand (that is a recession, isn't it)?

I have spoken to many within the business and IT communities – vendors, distributors, resellers, manufacturers (of the few left) and the service industry – and they all have the same problems. Like Keith in the mountains with targets and objectives – up one day and down the next and without doubt the rise in fuel costs are starting – like his feet – to hurt in a variety of ways!

At the moment, business is certainly like a mountain walk with peaks and troughs giving us all a rollercoaster ride. One month business is good but then unfortunately the following month it's down, so when averaged out, one good month and one bad month equals two mediocre months.

However, lately it appears to have got even tougher, with one good month now followed by two poor months, resulting in three below average months. So what is the answer? Working harder and longer? As Keith will tell you on his return walking down hill is as hard as walking up hill and in many cases even harder.

This means that we are all working very hard in the good months and even harder in bad months. So the best option is as often quoted – we must Work Smarter, especially when business is hard to come by and competition is around every corner.

Although taking all business as it comes may mean lower profit margins than we'd like, it can help the bad months seem less bad. More important however is the need to continually seek to Add Value.

This is a message that we constantly advocate at conferences and why we are always looking to introduce presentations and offerings that highlight ways of adding value. In order to do this we and our staff need to be aware of all such opportunities and then trained in order to take advantage of them.

When business is difficult (and when isn't it?) is a good time to make sure you are well organised – just like Keith's holiday he had to plan his route well in advance – what to take, what to wear, distances per day, where to sleep and what to eat and of course where to find a good Rioja!

Some project, but just what all businesses have on to do day in, day out, year in, year out! What is selling – where can I get it – at what price – what is the lowest cost option to get it delivered – should I purchase more – how best to promote it – and what is the competition up to?

Then what about staff and staffing levels – when is the correct time to take on another sales person? – when business is slow so that person can increase sales or do you wait until business is good again?

Whether you can work leaner and meaner often depends on your business type and your business plan needs to be monitored and tested on a regular basis. Now the PCA has just launched a Situations Vacant page on the new website so have a look and place an ad – what have you got to lose?

Feedback and interest on our stand at Channel Expo encouraged all of us. A well established business with a good business plan will survive and come out fitter and stronger in the end.

Here at the PCA we now have nearly 1,000 members and the target is to double this over the next 18 months to two years. When times are hard and inflation is high, that is the right time to join your trade association and we have achieved growth of 300 per cent in the past three years.

Attend our meetings and benefit from talking to others from within the industry and see that you are not alone. Come along to one of the many conferences and workshops that we hold for you and talk to other resellers, distributors and manufacturers.

And talking of new members, Sage has now joined the PCA and we intend to work closely together to enhance its Anti- Piracy Activities. This is great news for all PCA members. Sage is the largest supplier of accounting software in the UK and if we can all work to defeat piracy, it can only be good news for all PCA members, reducing unfair competition and protecting our customers.

We are now waiting for Keith's return and in next month's column (he will be writing it) perhaps we will find out if climbing mountains is easier than running a business and see if there are any tips he can pass on!