“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” Mark Twain
The founder of Waypoint Analytics, Randy MacLean, recently spoke to a distributor group on: “Seven Limiting Beliefs That Prevent Profits”. The group’s Executive Director asked Randy for a summary article to share more widely. Randy obliged. Now, you too can read it at his web site. (Link below).
Score Your Management on The Seven Beliefs
Skim Randy’s “Seven Beliefs” (plus my cryptic comments) below. And ask:
- Does our team believe these beliefs?
- Would Randy’s article spark a fruitful discussion?
- Why not book Randy for a demo of his faith-shaking analytics?
Big Seven (Abridged):
- What Got You Here Won’t Take You Further Fine-tuning the past leads to commodity hell. Innovating with analytical insights about your most profitable and unprofitable customers will win.
- It’s All About Our Products Promoting commodity products that competitors have? No! Help key customers reduce hidden, “soft”, buying costs with Line Item Profit Analytics? Yes!
- You Can Do The Math in Your Head A cloud service doing billions of real-time, calculations reveals counter-intuitive information for unique customer solutions.
- Gross Margin Percentage Drive Profits Gross Margin Percentage (GM%) is blind to both the volume of Gross Margin Dollars (GM$s) in a transaction and the Cost-To-Serve Dollars (CTS$s) for its fulfillment. Why not also turn losing Profit Equations into winning ones. (The Profit Equation is… GM$s – CTS$s = Profit $s….for every line item, order, customer, etc.)
- Nearly All Our Sales Contribute to Profit Losing a dollar of GM$ from a customer with a losing Profit Equation won’t hurt, if: everyone is itching to dynamically and proactively serve next-level needs for biggest GM$ customers.
- Sales Headcount Drives Profits Startups add reps to do 100% prospecting. Mature businesses have all big accounts assigned to reps along with too many small, non-growing ones. Check out Randy’s formula for the annual GM$s needed to support a maintenance rep.
- Our ERP System Tracks and Reports Profit Financial statements are blind to CTS dollars for processing – lines and order – and for servicing customers. Without a Cost-To-Serve model, you have huge opportunities hiding within your aggregated financial numbers.
Read, discuss, score and then get CTS-Analytics demo proof!