253. “Sell High”!

Distribution Strategy, Index

(Apologies for my blog hiatus. I left off on 7/6/21 with the third – of an intended 6 – blogs on rethinking management beliefs for the better. This is fourth in the series. For the first three, check blogs 250 to 252)

INITIAL, SELL-HIGH THOUGHTS

Here’s a fantasy: raise all prices by 1% and not upset or lose any customer business. Then: with zero increase in service-activity costs, the incremental margin (less rep commissions) flows to the bottom line. This is the easiest, fastest and biggest profit-improving tactic for distributors: in theory only!

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251. Distributors’ Financial-Management Blind Spots

Index, Profit Analytics

The 2nd in a series of blogs on: “Rethinking Business Assumptions and Models”

The Origins of Financial (Beliefs) Management   

Financial reporting for business has been complexifying (and increasing in cost) since 1494 when: double-entry-accounting and the balance sheet were invented. Since we swim in financial numbers, it’s the language of business and blinds us to believing in and using other insightful analytics.

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250. Rethink Your Business Assumptions and Models

Core Renewal, Index

Change With Your Key Partners’ Digital Desires

Barcodes sparked major, model-changes in the ‘80s for both drug and grocery distributors. Regular-calling reps gave way to: sole-supply, integrated, automated, replenishment systems. And, many extra services were unbundle for fees. 95% of the existing distributors didn’t change and disappeared. This model has since spread into other channels, especially with repetitive commodity buying.

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249. Rethink “Digital” with Customer Advisory Boards (CABs)

Distribution Strategy, Index, Service Value Innovation Guidelines

My CABs Changed My Distributorship

In the early ‘80’s, I bought a multi-location, contractor-supply distributor. The employees were panicked about the new owner from outside the industry. But, thanks to CABs, we all won big.

I did a customer-profitability, ranking report. Sorted best customers into segments. Ranked the segments by net-profits. Then, visited five, most-progressive-and-ambitious customers in our best segment. Together, we redefined “service excellence” by 8 metrics. My employees got stoked to achieve perfect service. We proceeded to dominate one target-niche after another. We stole only the most, net-profitable (and growing) customers from our unfocused competitors.

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248. Time to List Your: Known-Knowns to Unknown-Unknowns

Index, Service Value Innovation Guidelines

“As we know, there are known knowns; there are things we know we know. … But there are also unknown unknowns—the ones we don’t know we don’t know”.     Donald Rumsfeld (2-12-02)

From Ridicule to Daily Realities  

The media ridiculed Rumsfeld’s quote in ’02. Today? As the global economy tries to reboot with sledgehammer “help” from both governments and central banks, surprise snafus are the New Normal.

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