By Rich Bond
“20% of your customers generate 80% of your company profits…”
I’ve worked with enough companies to know this statement is usually true.
Not only that, the profits are rarely generated by the largest customers.
At one point, I worked in a Seagram division that was losing sales and profits, even though they had huge marketing budgets.
The future of the division was in doubt.
I helped the division develop a strategic plan that cut spending and allocated support to the secondary and tertiary markets where we had most of our sales.
This division sold far more in the Florida Panhandle than in Miami, even though Miami is much larger.
Above is a picture of our typical Panhandle customer.
The geographic reallocation doubled profits and turned sales around.
If you are not getting input from your finance people about how your business could operate more effectively and profitably, you should talk to me.
We have a 5-step “Smarter Search” process that has allowed our clients to hire financial professionals who have added from $100,000 to $100 million to their company bottom lines each year.
