Dairy Operation Management

Posted in: Dairy Operation Management
The Work of a Consultant
Feb 22, 2009 - 8:21:41 PM

Robert Bailey, President

I've talked with many dairymen over the years about the trials and tribulations of farming. Being raised on a dairy farm myself, I am all too familiar with the up's and down's, and usually I find myself relating to their problems, but often I will offer a word or two of encouragement! Consulting is made up of many of the same challenges as dairying, but there are some differences!

Your ANC consultant has to deal with many of the same problems as you do. If it's a tough year for the customers, it is tough for the consultants as well because the same things that affect your income affect ours. Consultants have to collect money on a timely basis. They cannot afford to help "cash flow" even just one farming operation. ANC, in turn, must collect from the consultants in a timely fashion. Any company that allows credit has to raise prices to cover the additional cost. In truth, these higher prices are nothing more than high interest. At ANC, our prices have not reflected this cost. Another way for us and the consultants to hold down costs is by maintaining a low advertising budget. We may not contribute to every event or proposition that comes along, but it does help to keep your costs down which is worth more to you in the long run!

As consultants, we get paid based on our hard work, and ability to solve problems. Our goal is to help others make more profit. Years ago, I recall a situation where a customer discovered what his consultant made in a year. Naturally, the customer figured the gross amount and hadn't figured expenses for fuel, vehicle, insurance, lost inventory, equipment purchases, accounts receivable, and promotions. The consultant didn't shy away from this, and explained the expenses, but he also showed the customer records he had kept of all the people he worked with. This consultant was wise enough to have figured costs and profits and so he totaled them up. He then showed the records to his customer and replied, "I have had a part in helping these customers make a total of over $400,000 more profit. Don't you feel I deserve a part of that?" The customer then realized that the consultant was certainly worth his pay!

When you work with an ANC Consultant you get added value as you actually have a team of Consultants working for you. Behind each ANC Consultant is an office staff of knowledgeable nutritionists and technical people (7 at present), plus managers who are excellent problem solvers. Besides the ANC staff, we are also able to draw off of technical staff that works with our suppliers, and top University people such as researchers, professors, and extension agents.

Because of the time, thought, and research that goes into a ration, we do not take computers to the field. All of our rations are run in house. I do not think most dairymen would appreciate a consultant sitting down for 2 hours at a farm figuring out a ration. We want our time at the farm to be more productive. The office is only an 800 number away and fax machines are now common. This situation allows our consultants to make more service calls. I doubt most dairymen know how much work a consultant does to help set up a ration and keep up on the changes, much less actually running the ration! I also realize we are not in your shoes, dealing with the physical labor and management challenges of dairying.

One of the more frustrating situations a consultant deals with, is when a customer quits. This occurrence, however, is always a fact of sales. Naturally, it is a disappointment to work hard at solving problems, many of them unrelated to nutrition, and help a customer increase profits, only to have them quit. Sometimes customers forget why they started, and how good they had done over the long haul. At ANC, we really appreciate the past business of a customer that quits, and would certainly like to get the customer back. Maybe we can both do some things better! ANC consultants know that their program is the best available, and they also know they must continue to learn. If you need your consultant to do something that you feel isn't being done, please communicate accordingly, as we want to know where we stand and improve at our job!

I know that in sales, there are always competitors that will deceive potential clients to get business. Over the years, I've heard dozens of sales lines from the competition that prove to be untrue. It's hard to pick favorites, but some of these "sales professionals" will actually say whatever they think is necessary to knock down the competition. I am all for the truth, if that's what is said, but many times it is not. Many such lines are just opinions, and not based on fact. For example, the competitor that promises to save you money, but gradually increases your costs after you start probably did not tell you the whole story. However, many times we can save a new customer money and still get better results. The previous company then returns and claims they can now do it for even less! Does that mean they overcharged you the entire time you were with them before? Either that, or they are cutting out some important ingredients! After all, butter costs more per pound than margarine! When milk prices are lower, some of you may want to cut costs, but the truth is, most all ingredients that are profitable at $15-17 dollar milk, will also be profitable at $9-10 milk! I hope logic and common sense prevails in dairy farming as well as in the consulting business! I have no magic bullets for sale today!