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Is an Open House Good for Business?

Posted February 23, 2011 7:09 AM

As part of its business strategy, a metal fabricator uses an annual open house event so that customers can see how they operate. Now - is that a good idea? Should customers see not just the sales staff who visit them, but also the machine tools and shopfloor personnel who actually fulfill their orders? Is it a tactic your company employs? If so does it help increase customer confidence and so make business easier?

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#1

Re: Is an Open House Good for Business?

02/23/2011 8:11 AM

It's a good idea...
In my experience most engineers view most visits sales staff as a waste of time.
Unless they have been requested for a specific purpose.
I see one guy who insists on delivering samples by hand...I dunno why, I have nothing to say to him until I've tested the samples (other than maybe 'I hope they are to drawing this time')
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#2

Re: Is an Open House Good for Business?

02/23/2011 11:39 AM

I think it's good idea. If nothing else, depending on who the customer is, they will quickly realize that parts don't just make themselves out of thin air.

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#3

Re: Is an Open House Good for Business?

02/23/2011 2:35 PM

Definitely a good idea in my mind. I always try to take a full tour of the customer/vendor/manufacturer i'm about to work with. Do they keep a clean and organized shop, with good workflow, or is it a dirty mess? Seeing their facility might give you other ideas of their capability, or needs that you might be able to utilize, or help with. Maybe it will be an eye opening experience, that causes you to find another source, or maybe they will impress... It is always good to know who you are working with to avoid any issues or complications. It goes back to a good handshake, and a meeting over lunch, and the "old" proper way of doing business.

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#4

Re: Is an Open House Good for Business?

02/23/2011 3:57 PM

A while back, we held open days and they were highly valued for multiple reasons and the customer interface was relatively minor.

It allowed family and friends to see where we worked, and to understand in some way what we were faced with at "work".

It allowed shop floor to visit the offices and vice versa to enhance company wide understanding.

It allowed local people to come and see what was done inside the factory and how we contributed tot eh local economy.

It allowed local city council and politicians to come and see just how many people were involved (and how many votes) in keeping this enterprise in this district.

It provided staff with a different opportunity to develop skill in "event management" that would not have been available. These days were often arranged by shop floor staff with management support.

It provided a reason to "freshen up" all areas of the facility.

They were great times.

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#5
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Re: Is an Open House Good for Business?

02/24/2011 3:19 AM

Was ther beer and marsupials?
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(Kris made me ask)

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Re: Is an Open House Good for Business?

02/24/2011 4:34 PM

We did have the occasional visit by the resident Koalas and wallabies and there were some sightings of echidnas one year. Or factory was around 1Ha on a 25 Ha site and such sightings were not uncommon.

There was definately no beer, as the site tours were usually conducted with limited manufacturing operations functioning. One year we even borrowed a moulding tool and made some palstic "kit" toys to give to the kids that came through.

BTW, the home treb was a success. We were able to launch a 50kg block a little over 50m in the correct direction. It was VERY scary to pull the trigger and then see the concrete fly into the air, but that's another story altogether.

The more "off topic" votes, the better for this distraction.

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#6

Re: Is an Open House Good for Business?

02/24/2011 11:03 AM

I always insisted on visiting any facility that I planned to use as a supplier to my customers. Judging their ability to meet the demands of some contracts cannot be done by a sales person. Some manufacturers will quote their ability to produce in volumes that would completely overwhelm their capacity.

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#8

Re: Is an Open House Good for Business?

02/25/2011 4:19 PM

From my point of view an on site visit or open house is priceless. It can take me three days by email or 3 hours by phone to find out exactly what a client is importing/exporting/making/selling or whatever. But it will take me 3 seconds if you put one in my hands. People who enjoy what they do always enjoy showing it off and it helps me greatly if I know what they do. I also usually get to meet the guy who has all the answers and I call him next time I need info, not the accounts payable clerk they tell me to call.

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Re: Is an Open House Good for Business?

02/28/2011 11:21 AM

My company reguarly has customers shown around the factory, but we don't have open days. It helps to improve customer relationships if they can see how we are improving and what we are doing to solve any issues they may have had with the products. Each department has it's own Visual Management board, where information can be found on what visitors to expect through the week.

Customers who visit the factories probably feel better about where their items are being made - if your inviting them in, you have nothing to hide from them, surley that has to help improve the customers confidence in the company.

I personally don't think that an open day, where the general public can come and have a look is a good idea. I also can't see them being at all interested in the company, as a lot of people in the area have worked here and we aren't that far from a beach, which has to be a more intersting option.

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#10

Re: Is an Open House Good for Business?

03/08/2011 11:05 PM

Everyone has made valid points here. But to play devil's advocate, I'm going to suggest that it is not always a good idea.

A few cases in point: I took a contract at one design house that had been using a particular machine shop for quite a while. They were reliable, on time, accurate, etc. One day I when I decided to go pick up parts personally, I found out that no one had ever visited that shop. At least, no one who still worked there. When I got there, I was shocked. Never had I seen a dirtier, gloomier, more disorganized building. Most of the machinists barely could speak English (wondered about their legal status). All the machines looked old. Parts all over the place. But yet... they produced as promised. They did damn good work.

Another place I worked had a long time shop they used, whose prices were crazy high. This place was in fact visited often. Everything was spit-shined. Very favorable appearance. But the prices were out of this world. So I decided to give some jobs to a guy I knew who worked out of his barn that he turned into a shop. There was nothing impressive about his place. Mom & Pop. Night and day, between him and the other place. Clean, but almost no equipment or stock. No offices. Bottom line is, that that guy ended up getting most of our business after a few months, for about 60% of the cost.

So open houses can be deceiving at times, and not always in the best interest of all involved.

Reputation and referrals are far more important than appearance.

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