(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!
Continue reading 253. “Sell High”!
Points From First, Two Blogs of Series:
#1 Why companies must – rethink, unlearn and relearn – for new business models.
# 2 Financial-management mantras both blind and bind your firm.
Continue reading 252. “Buy-Low” Better (Rethinking Assumptions #3)
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.
Continue reading 251. Distributors’ Financial-Management Blind Spots
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.
Continue reading 250. Rethink Your Business Assumptions and Models
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.
Continue reading 249. Rethink “Digital” with Customer Advisory Boards (CABs)
“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.
Continue reading 248. Time to List Your: Known-Knowns to Unknown-Unknowns