Meeting Stresses Caused by Recession & Reducing Costs

Meeting Stresses Caused by Recession & Reducing Costs

by Dr. Fred Garrett, dvm, CEO Nantze Springs Bottling Company

During this time when most business’s have been stressed out due to the recession and to the sharp reduction of pricing structures caused by heavy competition among the large end bottlers, it becomes necessary for all companies to attempt to reduce labor cost. One of the areas that Nantze Springs has looked at is route calling. We have always made next day calls to non-business accounts. This has taken one full time employee dedicated to this job.

We are now 3 months into a program in which we are using automated calling. This program will make one call every 48 seconds on up to 4 dedicated lines. We are at present using 1 dedicated line. This can make our next day home route calls within a 7-hour time frame. This relates to a $20,000 plus savings in labor cost with a $5,000 outlay cost.

This system allows our own voice overlays. We can use this message system to promote any new products or promotions. This is easy to do and takes little time. After all calls are made the system will redial any missed calls twice. It then gives a printed report of all completed calls, no answer calls, and bad number calls.

In our business model we have found water sales to be flat to negative. Several years back we felt this would become a reality. This has come about not because of water sales, which has been increasing, but because of large corporations in competition with each other forcing the product price to a level in which the is no profit margin left for the small to medium size bottler.

In order to offset these sales and annual growth in the company we have looked at different models in order to stay afloat during these times of transition. In order to offset water sales we started a project to be able to produce products other than water. We now have a system in place in which we can blend and mix any tea or flavored waters. This allows us to be able to co-pack for outside companies. We also have developed several products that we presently market in multiple states.

We at Nantze Springs welcome any comments.