Category Archives: Line Item Profit Analytics

6. The Seven Purposes of Profits

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Distributors that have Line-Item, Profit Analytics (LIPA) can see and use seven different purposes for Profits to then grow them sensationally.

Economists See Three Purposes for Profits

  1.  Profits are a Cost of Capital.  Shareholders want a return on their money in the business. The  more risk a shareholder has of not getting their money back, the higher the return they expect. Most  distributors don’t earn a competitive, (after-tax) Return On (Shareholders’) Investment (ROI). Non-employed, minority shareholders would sell for “book value” in a heartbeat and do better reinvesting in muni bonds.

    2. Continue reading 6. The Seven Purposes of Profits →

3. Let a Thousand Profit-Improvement Innovations in Distribution Bloom

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Distributors with “Line-Item, Profit Analytics (LIPA) Management” capability can:

  • Go “Open Book”
  • Put all employees on bottom-line, gain-sharing incentives
  • Watch everyone grab newly visible ways to increase customer value and/or lower service costs
  • Pay big bonuses out of even bigger profits
  • Work less and cheerlead more!

Continue reading 3. Let a Thousand Profit-Improvement Innovations in Distribution Bloom →