Category Archives: Line Item Profit Analytics

35. Don’t Be A Fading-Economy Statistic

Distribution Strategy, Index, Line Item Profit Analytics, LIPA, Profit Analytics

The Q2 earnings for publicly traded distributors aren’t pretty. After netting out financial tricks, most distributors are reporting lower sales and profits. Going forward, will you be happy with just matching them, cutting costs, and trying harder? What about profitability and fading-economy statistics?

Why Not Find More Gold In Big Accounts?   

How? Apply a cost-to-serve (CTS) model on every account so you really understand your net profit and loss potential, and the fading-economy statistics. Then, investigate the sub-groups to uncover the: Continue reading 35. Don’t Be A Fading-Economy Statistic →

32. Steal Selling Ideas From Leading Edge Distribution Channels

Distribution Industry Sales, Index, Line Item Profit Analytics, LIPA

To reinvent your selling value, look for ideas in the most advanced distribution channels. What are reps in those micro-worlds doing that you can borrow and adapt to yours?

A Technical Product Rep With 4 Customers

Channel reps tout their product expertise. But, my friend, Alex, is the real deal. He sells artificial joint-parts to orthopedic surgeons. His “territory” is four doctors. He assists them in ordering the right, best-fit parts for each patient’s joint and conditions. Then, he often dons surgical scrubs to advise the docs during surgeries. He is the expert when patients have odd joint issues (upon open inspection) or need newer-model or rarely-used parts. Continue reading 32. Steal Selling Ideas From Leading Edge Distribution Channels →

24. CEO Sales Calls that Win Huge, New Profit

Cost-to-Serve Math, Index, Line Item Profit Analytics

The CEO, Profit-Sales-Call Formula:

  1. Do a customer profitability ranking.
  2. Personally call on the #1 (or few) most profitable accounts.
  3. Use your title to win audiences with higher ranked folks reps don’t get to see.
  4. Have maximum account information and pre-written, best questions in advance if need be.
  5. Besides saying “thanks” and “showing the flag” have these goals:
    1. To do an immediate (or pitched for) “audit” of the buy-sell, inter-business process that has evolved between you: so far, un-managed and un-tuned. Find inefficiencies to fix with your people and dime. The account’s profits over-justify the investment.
    2. Improve the customer’s profits by the reduction of their “soft costs”. Find ways to consolidate small, frequent – line and invoice – purchases that also cost the customer recurring – downtime, expediting and emergency small order- costs. (You will save matching service-activity costs!)
    3. Find, deserve and win more share of sales.

      4. Continue reading 24. CEO Sales Calls that Win Huge, New Profit →

22. Fizzle-Proof Dashboard KPIs

Index, Line Item Profit Analytics

Business Intelligence (BI) “solutions” with sizzling dashboard KPIs first promised profits in the late ’80s. Financial KPIs can help with fiscal discipline. But, their “try harder” novelty fades, and better results are rare. It turns out that – like all tools – BI/Dashboards don’t make for better carpenters, smarter strategic blueprints, innovative input KPIs, or, effective leadership.

Continue reading 22. Fizzle-Proof Dashboard KPIs →

21. Do Your Most Profitable Thing

Distribution Strategy, Index, Line Item Profit Analytics, Profit Analytics

Regarding Next Year’s Branch Plans

Sit through a day of branch managers’ presentations on: “Next Year’s Plans”. How often do you hear (every year)…

“We are going to (try harder) to: buy a little better, sell a little higher and get more efficient at (various) operational costs and execution of (product-centric) sales promotions.”

Excellent! But, tackle these questions too:

Continue reading 21. Do Your Most Profitable Thing →

19. Do you Need/Have a CIO (Chief [Profit] Information Officer)?

AmazonBusiness, Index, Line Item Profit Analytics, Profit Analytics

The “Digital Haves” (often startups) are eating companies who think “IT” is only about automating past activities to save costs.  For more on “Digital Haves”, find free on the net: McKinsey Global Institute’s report: “Digital America: A Tale of the Haves and Have-Mores” (published 12/15).

Continue reading 19. Do you Need/Have a CIO (Chief [Profit] Information Officer)? →