We all wonder if we could do a better job of selecting seed and other inputs for our operation. As a farmer and someone who has interviewed many in our industry on this topic, here are some of the points I consider.
VALUE EXPERTISE
Each of us has strengths and weaknesses. I interview some farmers who know herbicide chemistries far better than most chemical company reps. To help cut costs they may purchase most of their herbicides from lower-cost providers who provide little service after the sale. I, on the other hand, usually do not. Both are good options. I consider the expertise of the person/company with which I’m doing business. Sometimes their expertise is well worth the money.
WHAT IS THE VALUE OF SERVICE?
We all say service is important, but sometimes we cut corners by working with individuals and companies that are very poor at it. Consider the cost of down time because your supplier could not make timely deliveries, gave poor advice or failed to help when things went wrong.
TIME IS MONEY
I find that most of us greatly underestimate the value of our time. I have a mental list of my strengths and weaknesses. There is an adage you should, “Soar with your strengths and manage your weaknesses.” My strength areas are ones where I might need a lesser level of expertise and service because I already have a good working knowledge. Conversely, I try to “manage” my weaknesses by having a good baseline of knowledge and then supplementing this knowledge by working with others who have expertise in that area.
THE BOTTOM LINE
For me, the bottom line is I’m willing to pay more for a higher level of knowledge, expertise and service, especially in areas where I am weak. I put a value on people and companies that are good partners in the process.
Cutting costs can sometimes hurt your bottom line. Spending “extra” money can sometimes improve your margins. You may not have to spend as much money for expertise in areas where you are efficient.
These points may sound basic. But, many of us neglect to place a true value on knowledge, time and service. In turn, we hurt our own operation’s bottom line.
