Why Counter Sales Drain Profits
Counter Sales in Distribution ran out of control from a desire to provide better service to a wide range of customers. They are attractive to staff because of the personal contact they enable with the clientele. They are often a remnant of the company’s early days in business. But they misuse the company’s infrastructure designed for volume sales.
With ground breaking profit segmentation, you can re-engineer your service model to stop the profit drain. You can act on:
- The inventory (cartons vs units, etc)
- The sales capture process (how about self-serve for certain SKU?)
- Policy items (pricing should be service-model specific, not customer centric)
- And be ready to run multiple service models to protect vital business
In the webinar below, Randy MacLean shares how distributors use Analytics to beat the odds and sustain class-leading customer service, while preserving their margins. He explains in detail all the action axis for a successful transition.
You can get a copy of the slide-deck used in this presentation to spark a conversation about your own counter sales. :Click here to download.
How WayPoint can help
WayPoint calculates new and detailed cost and profit information and delivers reports on information that does NOT exist in any of your current systems. This is why your current Business Intelligence Systems may have been blind to the issue. BI commonly generate reports based on information you already have in your system, without detailed costing.
Counter Sales invariably end-up in the "Reg -" category of your Customer Segmentation
This means that they generate less Operating Cash and cost more to serve then your average accounts. You can get the primer on this classification by Clicking here.
Compounding the problem is the fact most distributors use a multitude of COD accounts for counter sales, therefore masking the depth of the problem.
Assisted by WayPoint reports, you can quickly identify the SKU that make up the bulk of these transactions. You can make changes specific to these items by analyzing the purchasing patterns.
And only WayPoint can calculate for you a detailed P&L by SKU, Account or Distribution type. This is the true benefit of Quantum Costing.
WayPoint comes ready to report on your cost to serve, enabling you to customize your service offering. You can adjust your pricing structures accordingly.
Watch our instant demo video for a guided tour of some of the best reports in WayPoint and either Click here to email us or call us at 480-426-9955 to arrange a no-obligation live demonstration for you and your team.
You’ll be delighted by what is possible with WayPoint.