www.quantumprofitmanagement.com Quantum Profit Management
LIPA: Prophet of Customer Needs

Bruce Merrifield, President — Merrifield Consulting

•customer service •WayPoint Analytics •market segmentation •pricing strategies •business math for distribution •LIPA •line-item profit analytics in distribution •eCommerce •activity-based costing •Randy MacLean •customer profitability analysis •Bruce Merrifield •sales strategy •Merrifield Consulting •money-losing customers •strategic profitability analysis •concierge customer service •counter sales •managing profit •analyzing delivery •controlling profits •Business Intelligence

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When companies gain the power of Line Item Profit Analytics, (LIPA), many new doors open up. However, many employees are only focused with their silos, in their office, and are too busy to deal with these new opportunities. They will often use their new LIPA power to improve what they're doing in their own field, but they will rarely think beyond that as for how to apply these analytics elsewhere.

Your accounts all have specific needs and desires, and in a perfect world you'd have the infinite pool of money it would take to do so. Instead, you have to figure out which of your customers are really worth the struggle.

You currently are serving accounts that are generating negative net profits. In fact, it's probably that most of your customers are making you little to no money. Most distribution companies are actually being carried on the backs of a few golden child customers, with most profit within the company generated by these 5-10 accounts. With your profit being driven by these few star accounts, they're the ones to really focus on keeping happy.

This is good wisdom to have under your belt for sure, but you can't put it into action yet unless you have the deep dive analytics that can identify what those few star accounts are. And you can't figure that out with spreadsheets and averages, you need a cost to serve (CTS)-focused system like WayPoint that will identify your most valuable players.

Now that these customers are identified, you can offer them whatever special treatment they desire, knowing that their efficient cost structures will keep it profitable to do so. Your other accounts start asking for that same treatment? This opens up a new discussion on how to make those accounts more efficient as well so you can afford to show them the same service excellence.

For more information about Bruce Merrifield, visit: www.merrifieldact2.com

The 7 Areas That Need Your Focus (brief)

The 3rd of 3 lists defining the markers of Distribution companies outpacing their peers.

The 6 Attributes of Super-Profit Companies (brief)

The 2nd of 3 lists defining the markers of Distribution companies outpacing their peers.

An Analytical Boost to Service Excellence

Bruce Merrifield and Randy MacLean discuss the handful of key customers in your business, and how to keep them happy and loyal.

Beyond Business Intelligence

Randy MacLean explains the differences in business intelligence systems, and how to know what you're getting with each kind.

Why In-House Analytics Fails

In-house analytics initiatives are prone to delivering ineffective information or to outright failure. Here's why.

2020 Q4 Brief - Exploiting / Optimizing the Recovery

2020 Q4 is the time companies can take great leaps in market position, actively shaping their competitive landscape for years to come.

Staying Effective in the Changing World of Sales

The top business know not only how to innovate, but where to spot opportunities where innovation will bring the greatest results.

Getting a Deeper Understanding of Costs

Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss different levels of cost analysis, and why deeper analytics can bring much greater benefits.

Profit-Value Segmentation

Customer triage is key to profits in Distribution. Randy MacLean share the key elements of costing required to help you assign the right service level.

How Distributors Should Rethink Their 2017 Sales Growth Plans

Waypoint Analytics uses line item profit analytics to dig deep into the numbers, and Waypoint users learn both bad news and good news about their customers.

Managing Product Line Profitability

Managing Product Line Profits shows how operations can have a significant impact on net profit and examines Peak Internal Profit, accumulated profit and more

Profit Value-Based Customer Segmentation

Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss profit value-based customer segmentation.

Gross Margin Percent: A Poor Indicator of Profitability

Many naturally occurring, high gross margin percentage accounts and high gross margin percentage SKUs are operating profit losers.

The Advantages of Segmentation

A discussion of the benefits of segmentation and how this approach can help distributors achieve far greater levels of profitability.

How to Turn Big Data Into Big Profits!

Top companies like Amazon can leverage big data to predict consumer buying habits. Bruce Merrifield discusses how you can do this too!

Gross Margin Percent: A Poor Indicator of Profitability

Most distributors have naturally occurring, high gross margin percentage accounts and high gross margin percentage (small dollar pick) SKUs.

Protecting Your Core Business

How to identify and protect the accounts at the core of profits.

Increase Profits: Rank Customers and Act Accordingly

Here is a case study in which the lowest gross margin percentage niche was the most profitable and the highest gross margin percentage was the loser.

Discussing the Enterprise Account Selling Model (#3)

Continuance of the Enterprise Account Selling Model video series. Refers to a preceding video. Drawn from Bruce's presentation at APIC on March 1, 2016.

Discussing the Enterprise Account Selling Model (#2)

A continuation of the discussion between Bruce Merrifield and Randy MacLean over Bruce's Enterprise Account Selling Model (part 2).

Discussing the Enterprise Account Selling Model (#1)

Bruce Merrifield and Randy MacLean discuss Bruce's Enterprise Account Selling Model, as presented at APIC on March 1, 2016.

Looking at a Customer Whale Curve

Customer whale curves are a great opportunity to view the overall picture of your customer profitability and apply appropriate sales models to each

Increase Innovation with a Rule and a Tool

Bruce Merrifield discusses the Wheel of Learning and how this simple tool can catapult you forward with innovative thinking.

Cost-to-Serve Math: Why Gross Margin May Fool You Every Time

This video by Bruce Merrifield and Randy MacLean describes why you can't rely solely on gross margin to determine profitability.

The Changing Face of Sales

An in-depth look at some historical limitations to sales compensation, and why those factors no longer apply with the availability of LIPA.

Maximizing Account Potential through Segmentation

Randy MacLean discusses the value and utility of segmenting your customer accounts.

Working on Your Best Accounts

What to do with your top accounts.

Gross Margin Fixation

A fixation on gross margin – without looking at cost-to-serve (CTS) – has blinded countless distributors and limited their ability to achieve profitability.

Amazon Tactics: Know Your SKU Profit Winners and Losers

See why your most profitable 200+ items are typically popular commodities with lots of picks for lots of customers with a high average sales dollar per pick.

A WayPoint Client and Whale Curve Success Story

Learn how this distributor was able to massively ramp up its profitability even as it lost many of its customers.

Cost Structures: What Makes for a Good Sale?

Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.

Changing Sales Strategy Using LIPA

Randy MacLean talks about the emergence of a new sales strategy.

Why You Should Sweat the Small Deliveries

A discussion on how little extras can sometimes add up to a lot of infrastructure cost in wholesale distribution companies.

Increase Innovation with a Rule and a Tool

Learn how to boost your company innovation IQ by adopting the Anti-Nitpick Rule and the Wheel of Learning Tool.

How and Why Amazon Drives Change for Catalog Operators

Catalogs still exist, but they have gone online. In this video, Randy MacLean and Bruce Merrifield outline the changing reality of catalog operators.

Why You Should Be Optimizing Inventory

Randy and Bruce explain why it's important to optimize inventory in the same way you optimize personnel and other resources toward the best profit opportunities

Using WayPoint's High Volume Account Report to Increase Profit

Randy discusses the benefits of the extraordinarily valuable High Volume Account Report.

Prioritizing Your Customers

A discussion of the perils of a cookie cutter approach when it comes to sales and service in the wholesale distribution industry.

How Customer Segmentation Unlocks Hidden Profits

Bruce Merrifield of WayPoint Analytics teaches the importance of customer segmentation and the insights it can offer your distribution company.

The Element of Pricing

It's not necessary to compete with AmazonSupply on pricing when you've got your ordering and delivery systems, fill rates and customer service at a high level.

Making Money by Giving Away Product

Bruce Merrifield and Randy MacLean discuss profit strategies for wholesale distributors that will raise their cost-to-serve and profits.

Webinar: How to Create a Sales Compensation Plan (pt 2)

Webinar: Quantum Sales Compensation Plan Part 2

Webinar: How to Create a Sales Compensation Plan (pt 3)

Webinar: Quantum Sales Compensation: Designing Your Plan

Webinar: How to Create a Sales Compensation Plan (pt 4)

Webinar: Quantum Sales Compensation for the Wholesale Distribution Industry: Launching Your Plan