Based on the ongoing goal of discovering where islands of profit exist, this week we take at look at product. Identifying what product and who is buying them ensures focus and help us to reduce risk.
3. What we want
Those high volume product
that have better than average
margins
4. So what do we know
4856 out of 19,427
products
AND
337 out of 1,348
customers
Represent 91% of
our revenue and
84% of our
margin
Revenue to margin gap
The smaller volume
products are making a
significant margin
contribution
……..9% of
volume = 16%
of margin
5. Getting familiar with the top performers
Traffic lights are a powerful optic
Products
highest
volume first
Action:
Have someone accountable for product performance
during the month so this does not happen
6. How are the top performers are trending
Top
performing
product A
Top
performing
product B
7. Determine the most profitable product groups
1,934 products are
delivering a margin
of greater than 41%
Yea but!!
I am sure most
of those
products have
small volumes
8. Segment your products by revenue size
1748 Products
deliver more than
$1,748 revenue
per month
But I am sure many
of these large
product volumes
are at lower
margins
9. I represent the
large volume
products but some
part of me is not
that profitable
I represent the most
profitable products
but some part of me
does not do that
much volume
You have found me .
I have good volumes and good
margins
This is where I make the money
10. Problem solved – High
revenue high profit products
High profit
segments
Looking for those
Products who
produce more
than 40% of total
revenue and
those that
produce more
than 34% margin
Product segments
by revenue size
(top 3% of revenue
delivered by 562
products)
Product margin %
-Products that
produce more than
41% margin
-Products that
produce 34% to 41%
margin
13. Want to improve sales and margins
But
You don’t want to learn new software
You know you wont have the time to use the new tool
properly and neither will anyone else
The cloud is something you worry about when you want t
know if its raining or not.
You want the facts and you want them in
ways that you can make a difference
15. Why not outsource your sales intelligence
We will
Install the required applications
Review your data
Determine
Where you can grow
Where opportunities exist to sell more
product to existing customers
(increase wallet share)
Where you can improve your margins
Where you are at risk
Provide you with a monthly portfolio
review
Deliver an action plan to get it done
Once off set up fee
$700.00
$800.00 per month*
Can cancel when ever you
wish
Cost
*Up to 10,000 active products, larger data
structures may be more
Contact agien@gfbridge.com
16. Rapid improvement of
profit, cash and returns
with enduring cultural
impact
Individual
customer growth
Product and
customer portfolio
optimization
Analysis | Design |
Implementation
Financial Statement
excellence
Performance consulting
GFB Service Portfolio
Passion for Intuition powered by Evidence
17. Contact
Andre Gien
agien@gfbridge.com
925 323 2802
Andre is our Evidence Wizard. He combines the Passion of intuition
with the Power of Evidence to weave amazing stories that reveal the
secrets and treasures that are locked within your business.
He has deployed the evidence based management discipline in over
150 different companies releasing more than $500 million in value
and more importantly, demystifying the complexity for thousands of
people.
Andre's favorite quote:
"If you change the way you look at things, the
things you look at change"