The Problem with Having It All
•competitive strategy •sales practices •profit strategy •opinion / commentary •executive briefingWednesday, July 8, 2015—What would happen if your business completely owned its market? What would your performance be if you won every possible sale? The answer is average.
Every sale isn't a good sale. Some sales will bring in a great amount of profit while others won't have enough gross profit to overcome your transactional costs (so they wind up costing you money!)
If your company won every sale in your market, the best business would be dragged down by all the bad business, and you'd be left with an average performance.
Would you be happy with just an average performance? Or do you want a better return?
The key to a superior performance is recognizing that not all sales are created equal. What separates winners from losers is having more successful performances than unsuccessful performances. What separates the best distributors from the worst is that the best have more of the best customers while having fewer of the worst customers. Why? Because the best customers provide the largest amount of profit while the worst customers will eat into the profit made from your best customers!
You need to move your sales force away from the age-old myth that every sale is a good sale. Instead, have them prioritize their efforts on the business that will bring the most net profit. This one adjustment has the power to improve your company's bottom line almost immediately.
For more information about Randy MacLean, visit: www.waypointanalytics.net
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