Foodservice Institute Of America Releases White Paper On The Effects Of Commoditization

Leaders discuss the implications for the hospitality industry and take proactive measures.



Pleasantville, NJ (October 8, 2008) - Over 90 foodservice industry leaders participated in "Industry Survival: Overcoming Commoditization," an interactive symposium hosted by FIA, the Foodservice Institute of America. Conceived to bring leading business practices and measures to the food and hospitality industry the session was held May 2008 in Atlantic City, New Jersey.



The newly published white paper on this symposium addresses some session questions such as, "What do you do when your products and services are competing solely on price?" As well as, "What steps do you need to take to differentiate yourself and your business?" Click here to read white paper.



Tom Snyder, of the consulting firm XLNT Associates, and author of the book, "Escaping the Price-Driven Sale: How World Class Sellers Create Extraordinary Profits." advised the audience on how to position their products and services so that their customers would perceive their value and move to purchase. "Professional sellers deliver insight, vendors sell stuff," stated Snyder. His four essential points that are reviewed in detail in this paper for astute sales teams include:



1. Products and Services

2. Talk about the Price

3. Diagnosis Creates Value

4. Expertise Sustains Differentiation





The second half of the morning included a presentation by Kathy Gillen, CPBA, and founder of Strategic Management Partners, Inc. and co-founder of Foodservice Coaching Group. Ms Gillen talked about breaking through commodity barriers. Her message and formula for success follows:



The Right People + Innovation = Differentiation



Gillen also believes that success comes to the leaders that feel good about themselves and are therefore good at motivating others and helping people realize their true potential.



In the afternoon the room was split into eight teams to learn the power of brainstorming as a team to come up with ideas. Michael Colburn and Mary Esther Treat founded Colburn Treat; LLC in 1997 facilitated these exercises. This interactive session was designed to open the participant's minds about how to develop new solutions, creative approaches and make innovation a part of their businesses.



Participants acknowledged that our industry is facing stiff competition and that a shift in strategy and focus is needed for the long term viability of their firms and this industry.



This topic requires further research into the techniques of building relationships with the customers. This is a critical step for even the most qualified sales team, as it helps them connect with their customers and help them find mutuality of purpose.



Another important step to be studied is how to continuously upgrade your product and services and educate your customers. As asked by attendees at the Symposium, what is the most effective way to educate our customers to focus on value added proposition rather than price.



FIA will be engaged with research to delve into this issue and will publish its results in the near future.





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ABOUT FIA

The Foodservice Institute of America (FIA) is committed to advancement and professional development of its member participants through education, research, communication and collaboration. FIA is a non-profit educational and research organization which enhances and supports ideas for the betterment of foodservice providers and people who serv