Category Archives: Distribution Strategy

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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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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243. Supply-Chain, “Bull-Whip” Management

Distribution Strategy, Index, Supply Chain Partners

Product, Supply-Demand Chaos is Upon Us

Never has a global, just-in-time, balanced economy been shut down by a pandemic. Then, rebooted with:

  1. Massive “quantitative easing” by all central banks
  2. Political, New-Deal-2 stimulus cash to voters and lobbying industries.
  3. With on-going, escalating trade-wars and supply-chain reshoring.

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