In the News: “$15 Living Wage” v Amazon and Costco Strategies
The “$15-hour living wage” movement will continue. It will: buy votes; liquidate jobs; and boost McDonald’s prices more than the new, net wages. Although many voters are weak at system-thinking math, Amazon and Costco are not.
Continue reading 235. Embrace All-Win, High-Hourly Wages (like Costco)
Questions & Steps to WOW Charts!
What do the trends for three percentages of sales – gross margin, op. profit, and net profit -do for: GWW, GPC and FAST?
- Go to macrotrends.net (cool, free tool)
- Search for each of the three companies
- For each, select the first option: “revenue”.
- Once to the “2006-2020 Revenue” page click on: “margins”.
- Then, slide the cursor bar over the trend dots to see how percentages track or don’t!
Continue reading 232. 15-Year, Margin-Trend Insights for: Grainger, Genuine Parts, Fastenal
(This week’s blog is from a frequent collaborator, Bill Wade: a career distribution expert especially for heavy duty truck and automotive parts.
Amazon is expanding US fulfillment capacity by 50% in just 2020 as they drive towards 12-hour delivery in a 24-hour day. They are doing heavy build outs in target cities including Bill’s hometown of Chicago. Parts distributors of all types will feel the heat.)
Continue reading 210. The Future is Easier to Understand in Your Own Back Yard
Levels of Innovation:
All businesses innovate along a continuum from: trivial to breakthrough. Some rearrange the deck furniture on their Titanic (incremental innovations). Some might get an iceberg-resistant ship (new business model). And, a few will pursue an iceberg-free route (new channel model).
Continue reading 203. Invent New, Distributor Models
Vigorish (“vig”) is the fee charged by a bookmaker (casino or loan shark) for accepting a gambler’s wager. For roulette, gamblers bet on 1- 36 possibilities. The wheel, though, has 38 slots that include 0 and 00. When the ball lands in the 0’s (2/38th or 5.26% of the time) the house takes in all bets. With a 5%+ edge and time, the house prospers.
What if your company had several, service-value edges over the competition? Or, conversely, would you want to compete against a firm that has big, additive, value and/or cost edges over you? Two cases.
Continue reading 199. Create – Targeted, Additive, Service – Vigorish
Back in 2002…
…..Amazon hit an enterprise, IT, dead-end. Their IT system could not handle the silos of people who were handling exploding numbers of- SKUs, categories, orders, acquisitions, etc. – all sold through one homepage.
Continue reading 198. Bezos Switched From a Dead-End ERP System. Will You?