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If
you’re trying to compete on just price and performance
you won’t make it in today’s new market environment. Why?
Because price and performance can be replicated by your competitors.
What can you do about it? Enhance your customers’ revenues and
profitability through value-added initiatives! |
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You
can be driven out of business by "good" customers. Why?
Because we often confuse large volume customers with good ones. They
aren’t the same. You could be losing money on those customers
and not know it. Tracking individual customer profitability is essential
to the good health of your business. |
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Filling
a plant isn’t the same as running a successful business.
Why? Filling the plant may absorb some of your fixed costs, but it
won’t help your customers grow their businesses. Focus on getting
and growing customers more than lowering your production costs; you
can always outsource manufacturing. |
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Share of customer
may be more important than market share. Why? Selling more
in the general market doesn’t necessarily increase profits.
But selling more to good customers does increase your profits. |
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A sale that doesn’t make a profit
is not a sale; it’s a gift and you’re paying
for it! |
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Your
products and services may be fast becoming commodities. Why?
Because most companies have improved their products to the point that
the only difference between them is price. To beat Commoditization
you need to differentiate your products and services in ways that
are perceived as greater value by your customers. |
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If you’re like most companies
it is likely that 80 percent of your resources
are allocated to the wrong products and customers. Typically, 20 percent
of your customers will generate 80 percent of your most profitable
sales. Therefore, 80 percent of your resources are probably concentrated
on the least profitable 20 percent of your sales. The name
of the game is to concentrate the 80 percent of resources on the best
20 percent of prospects. Be selective – it’s
far more profitable! |
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Today’s buzz-phrase is "Never
mind strategy. You’ve gotta be tactical." Wrong!
By being tactical you may win battles but risk losing the war. Strategy
means concentrating your resources on the right opportunities to produce
maximum results. |
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Selling to a few good customers is better
than selling to many low potential ones. Forget market
share and concentrate on share of account of good customers with continued
growth potential – it leads to solid growth and profitability! |
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Most people in business today are not "business
people," they are specialists in usually narrow areas of the
total business spectrum. To be successful in today’s
changing business environment, we need people who can focus on the
entire business, not just their own small turf. |
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If you think
you compete in the marketplace you’re wrong. The
competitive battlefield is not in the marketplace but in the minds
of consumers; their perceptions determine who wins and
who loses. Focus on how you want to be perceived by your customers! |
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Don’t let customers lure you into competing
against lower price offerings. Point out that behind every
low price there is a hidden cost. If your prospect tells
you he can get the same product or service from your competitor for
a much lower price he may not be comparing apples to apples. Chances
are it may not be the same product, and he doesn’t realize that
he will also receive less. |
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Price is not related to cost but value. Customers
know that good value is always worth its price. |
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People don’t buy products they buy expectations
– offer to satisfy their expectations. |
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Don’t sell products, sell offerings!
Offerings focus on the customer’s total needs, not just those
supplied by your products and services. |
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Satisfying
customer needs involves more things than just your product. Find
ways to include those other customers - satisfying elements in your
offerings. |
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Don’t think of your resources as limited
to just what’s within your company. Your resources
can include your suppliers, products and services that complement
yours, competitor’s products and services, and
even your customers. |
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If you sell products, you can sell services. If
you sell services, you can sell products. Don’t
think just products or services – think Revenue Streams! |
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The greatest benefit you can create for your customers
is the gift of their own time. Today time is more valuable
than money! |
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Most processes and procedures are created
for company convenience. Company convenience most often results
in customer inconvenience! |
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95 percent of the world’s
consumers are outside the United States. Are you getting your share
of this business? |
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Never underestimate Third World markets;
they are the fastest growing. Don’t be fooled into thinking
that they can’t afford your products. India’s middle class,
for example, represents over 300 million people! That’s more
than the entire population of the United States! Can you afford to
ignore markets with so many potential buyers of your products and
services? |
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Companies that don’t track individual customer
profitability may have as much as 50 percent of unprofitable
customers - and not know it! |
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Many companies confuse filling a plant
with running a successful business. It may – or may
not be – but it’s not the purpose of a business. The purpose
of a business is to make a profit finding and satisfying customer
needs – whether or not you have a plant. |
