Monthly Archives: August 2018

110. Know and Partner Your Top 2% Highest Profit Value Accounts

Big-Accounts Range Widely in Net Profitability

Distributors! When you rank your customers by net-profitability, and then keep segmenting, you can find some amazing facts:

    • Pareto’s law applies to big accounts, but only for margin dollars, not for profits! The biggest 20% of companies will contribute around 80% of gross-margin dollars.
    • Only a third of the big accounts are net-profitable, and they range from amazingly so to modestly so.
    • The middle third will be around break-even before deducting sales commissions and modest losers after deducting commissions.
  • The bottom third are losers before commissions due to excessive activity costs for, usually for small-dollar picks and orders
  • A few may be shockingly unprofitable.

Continue reading 110. Know and Partner Your Top 2% Highest Profit Value Accounts

109. Astroball: Taking Lessons from the Analytical Champs

Baseball’s Begrudging Adoption of Analytics

Since the book Moneyball was published in 2003, all professional sports have embraced analytics, but none more than baseball.

Baseball executives initially hated the book Moneyball because it made them look incompetent. Then, one-by-one teams started to experiment with analytics; in particular, two teams with new owners who had gotten rich using analytics elsewhere. Continue reading 109. Astroball: Taking Lessons from the Analytical Champs