You sell many different products to many different customers, and on any given day, what you sell to whom changes – that’s what we mean by mix. Every product and customer can have a different profit margin, so even if you have the same top-line sales from one month to the next, your profitability can vary considerably. You need to understand your mix.
When customers call you for a quote, how long does it take you to get one back to them? If your answer involves the words ‘hours’ or ‘days’, chances are you’re losing business due to lengthy response times.
Customers appreciate having market-relevant pricing available immediately when requested, especially if they’ve been shopping around. Businesses can benefit tremendously – in terms of operational efficiencies, customer satisfaction, win/loss rates, and profitability – by implementing a quoting process that gives customer service representatives the opportunity to close the sale before hanging up the phone. But how do you make that happen?
The measurable impact of import tariffs is beginning to ripple across the manufacturing and distribution landscape and financial markets. Alcoa dropped 13.3% to a seven-month low earlier this week — an indication of how aluminum tariffs are hurting, not helping, U.S. based aluminum manufacturers. Regardless of which industry you are in, chances are you will be impacted.
U.S. shipping costs have soared to unprecedented heights in 2018. While this indicator of a strong economy is good news for manufacturers on many levels, it comes at a price. In this case, approximately $1.85 per trucking mile — a 68% increase since 2010. What fuels this trend and how to manage freight costs?
With the import tariffs announcement, there is concern of inflation in sectors that use steel and aluminum. In addition, several of our clients have seen cost increases in other commodities. Talk of inflation typically translates into panic. Here’s how we suggest you prepare for what’s coming...
Striking the right balance between effective pricing strategies and company performance is often an issue because there are so many factors involved. With price being the most important lever impacting your bottom line, one major pricing mistake could risk your company’s profit potential.
Achieving significant pricing gains can feel like a long, hard-fought battle. This makes it all the more satisfying when the numbers start to roll in, validating your efforts and proving without a doubt that profitability is attainable.
The thought of losing those gains may keep you up at night. What safeguards can you put in place to protect the gains you’ve achieved and prevent your company from sliding back into past poor pricing habits?
It all starts with building a confident sales force.