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
Thursday, October 03, 2019—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 3rd of 3 lists defining the markers of Distribution companies outpacing their peers.
The 2nd of 3 lists defining the markers of Distribution companies outpacing their peers.
Bruce Merrifield and Randy MacLean discuss the handful of key customers in your business, and how to keep them happy and loyal.
Randy MacLean explains the differences in business intelligence systems, and how to know what you're getting with each kind.
In-house analytics initiatives are prone to delivering ineffective information or to outright failure. Here's why.
2020 Q4 is the time companies can take great leaps in market position, actively shaping their competitive landscape for years to come.
The top business know not only how to innovate, but where to spot opportunities where innovation will bring the greatest results.
Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss different levels of cost analysis, and why deeper analytics can bring much greater benefits.
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.
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 Profits shows how operations can have a significant impact on net profit and examines Peak Internal Profit, accumulated profit and more
Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss profit value-based customer segmentation.
Many naturally occurring, high gross margin percentage accounts and high gross margin percentage SKUs are operating profit losers.
A discussion of the benefits of segmentation and how this approach can help distributors achieve far greater levels of profitability.
Top companies like Amazon can leverage big data to predict consumer buying habits. Bruce Merrifield discusses how you can do this too!
Most distributors have naturally occurring, high gross margin percentage accounts and high gross margin percentage (small dollar pick) SKUs.
How to identify and protect the accounts at the core of profits.
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.
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.
A continuation of the discussion between Bruce Merrifield and Randy MacLean over Bruce's Enterprise Account Selling Model (part 2).
Bruce Merrifield and Randy MacLean discuss Bruce's Enterprise Account Selling Model, as presented at APIC on March 1, 2016.
Customer whale curves are a great opportunity to view the overall picture of your customer profitability and apply appropriate sales models to each
Bruce Merrifield discusses the Wheel of Learning and how this simple tool can catapult you forward with innovative thinking.
This video by Bruce Merrifield and Randy MacLean describes why you can't rely solely on gross margin to determine profitability.
An in-depth look at some historical limitations to sales compensation, and why those factors no longer apply with the availability of LIPA.
Randy MacLean discusses the value and utility of segmenting your customer accounts.
What to do with your top accounts.
A fixation on gross margin – without looking at cost-to-serve (CTS) – has blinded countless distributors and limited their ability to achieve profitability.
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.
Learn how this distributor was able to massively ramp up its profitability even as it lost many of its customers.
Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.
Randy MacLean talks about the emergence of a new sales strategy.
A discussion on how little extras can sometimes add up to a lot of infrastructure cost in wholesale distribution companies.
Learn how to boost your company innovation IQ by adopting the Anti-Nitpick Rule and the Wheel of Learning Tool.
Catalogs still exist, but they have gone online. In this video, Randy MacLean and Bruce Merrifield outline the changing reality of catalog operators.
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
Randy discusses the benefits of the extraordinarily valuable High Volume Account Report.
A discussion of the perils of a cookie cutter approach when it comes to sales and service in the wholesale distribution industry.
Bruce Merrifield of WayPoint Analytics teaches the importance of customer segmentation and the insights it can offer your distribution company.
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.
Bruce Merrifield and Randy MacLean discuss profit strategies for wholesale distributors that will raise their cost-to-serve and profits.
Webinar: Quantum Sales Compensation Plan Part 2
Webinar: Quantum Sales Compensation: Designing Your Plan
Webinar: Quantum Sales Compensation for the Wholesale Distribution Industry: Launching Your Plan