Keep the Best, Then Reform or Get Rid of the Rest
•competitive strategy •profit analytics •2020 Vision •profit strategy •management strategies •new opportunities for distribution industryWednesday, August 12, 2015—What you choose to discard and what you keep makes all the difference in how you perform in just about all you do.
Much like a plant, your business may require a little "pruning" from time to time. For instance, would you shop at a grocery store that kept rotting fruits and vegetables on the shelf? No self-respecting grocery store leaves that kind of bad product on the shelves because not only does it fail to sell, but it actually discourages the customer from buying healthy products.
The best grocery stores trim off the wilted parts of plants and remove bruised or rotting fruit from its shelves. This helps to give the impression that the store always has the nicest, freshest products. Remember: Anything that doesn't sell is just taking up valuable floor space and thus eating into profits.
Winning companies do the exact same thing. They take a careful look at what is or isn't working. With the help of things like Line Item Profit Analytics, they're able to pinpoint parts of the business that are draining profits instead of adding to them. Finally, these companies are able to achieve spectacular results by reforming or getting rid of problematic accounts or products.
If you're swimming and barely keeping your head above water, the last thing you want is a load of rocks weighing you down. Yet too many companies try to capture every last bit of business on the mistaken notion that every sale is a good sale. It's important to recognize that certain accounts are bad for your business and that you should take steps to prevent them from harming you any longer.
One of our smaller distributor clients was hurting before it embraced this philosophy. They were only bringing in $150,000 to their bottom line each year but, after ditching 400 accounts, their bottom line jumped to $1.6m the next year.
Have you ever thought about how much profit your company might be losing from its bottom line thanks to unprofitable business? When was the last time you carefully examined your business and identified things you could improve or remove? If you're like our distributor client, you might find a way to massively improve your profitability without even needing to make another sale.
For more information about Randy MacLean, visit: www.waypointanalytics.net
Customer segmentation can be one of the most powerful tools you can use to develop and implement plans to optimize and deepen your customer relationships.
New Money – How to Analyze & Boost Profit from Delivery
See the surprising new methods top companies are using to calculate and optimize delivery costs and pricing, generating millions in new profits.
How Distributors Can Double Their Rebate Income
Companies can use analytics to better understand rebates, and use them as a powerful profit-generating tool.
How Money is Made in Wholesale Distribution
Randy MacLean shares his analysis of over $65B of distribution business to help others shed incorrect assumptions about how to make money.
Profit-Driven Customer Service
There's a direct link between high profits and second-tier customer service. This is how you use it to make more money.
Maximizing Account Potential through Segmentation
Randy MacLean discusses the value and utility of segmenting your customer accounts.
Cost Structures: What Makes for a Good Sale?
Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.
Changing Sales Strategy Using LIPA
Randy MacLean talks about the emergence of a new sales strategy.
Using WayPoint's High Volume Account Report to Increase Profit
Randy discusses the benefits of the extraordinarily valuable High Volume Account Report.
Innovate Podcast: Ultimate Customer Segmentation To Drive Profit
Dirk Beveridge interviews Randy MacLean of WayPoint Analytics on the ultimate profit-based customer segmentation.
Innovate Podcast: The Analytics of Super-Performing Distributors
Dirk Beveridge interviews Randy MacLean of WayPoint Analytics on the analytics and metrics of super-profitable distributors.
Exec Brief #5: Identifying High-Potential Accounts
Randy MacLean demonstrates how you can change the nature of your profit line by identifying highly leverage able profitable and unprofitable accounts.
Exec Brief #3: Concierge-Level Customer Service
Watch this impactful video from Randy MacLean and Dr. Jeanne Hurlbert. Learn how concierge-level customer service is integral to sustainable, permanent growth.
Wholesale / Distribution Basic Math
Randy MacLean talks about the little-known real math behind profit production in a distribution business.
To accelerate profit growth, make sure your company is using all seven of the levers that control profit.
The Problem with Having It All
Most sales operations look for every possible sale, yet that's the road to mediocrity, or worse.
Exec Brief #2: Tilting The Playing Field (Action)
Randy MacLean discusses the secret to sustainable profitability and lays out a proven 6-step strategic road map that will help you take your competitors down.
Exec Brief #1: Tilting the Playing Field (The Strategy )
Randy MacLean discusses a strategy to shift the profits in the market to your own company.
Where Does Your Business Really Make its Money?
In this 33-minute video, Randy MacLean of WayPoint Analytics shares some of the most important secrets and techniques for evaluating and measuring profit.
Why Does Gross Margin (Almost) Never Correlate to Profit?
Most executives were taught that increasing gross margin would increase profit, yet that's almost never true. Here's why...