Category Archives: Cost-to-Serve Math

206. Distributors: Upgrade Your Success Theories


Definition: “a theory is a group of linked ideas intended to explain observations. The explanations are based on assumptions.” 

Theories can evolve to explain and predict events ever better or not. Exceptions to the theory (anomalies) should spark new – investigations, tools, metrics, conclusions – that either improve the existing theory or supplant it with a new one.

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189. Black-Swan Management Strategy

Economic Dominos to Date

As I write, C-19 fallout keep increasing. An oil price war is raging. Global financial markets are melting. And, politicians and central banks are pondering more money-printing, can-kicking tactics to stay in power.

What to do? “Stay calm and carry on.”

But, only if you (also) have the right analytical and digital strategy that will win in the Cloud eCommerce world of 2023.

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QPQ For The Good

Politics is giving QPQ a bad reputation. But, “this for that” can also be a selling tool for turning win-lose customer requests into win-win outcomes.
Distributor reps can use QPQ for transactional fairness.

“Mr. Customer: you want a lower price? Understandable! How can we turn a – you win, I lose event – into a win-win transaction? Perhaps a bigger order or the promise of greater future purchases?”

Continue reading 181. ALL-WIN, QUID PRO QUO (QPQ)

175. Melting-Unicorn Wisdom for Distributors

Unicorn Melt-Downs?

Valuations for WeWork, Uber, Blue Apron, etc. have been tanking. They all prove that a company’s business service-cost model can’t spend more costs on a unit of activity than the unit’s margin-dollar content, and then make it up on volume.    

The same economic reality hit many retail dotcoms back in 2000. Remember eToys? In ’99, they were averaging $20 in margin per order while spending an all-in cost of $300 per order for fulfillment.

Continue reading 175. Melting-Unicorn Wisdom for Distributors