Profit Guide for the Small Distributor
An essential tool for owners of small distribution businesses (less than $20 million in revenue).
Running a small distribution business requires knowing everything about everything. It is a daunting challenge. Too often owners of small firms rely too much on their accountant to tell them what to do. Frequently, that is a blueprint for disaster.
The keys to improving performance are to know how you are really doing and to have a real plan. Triple Your Profit! helps in both regards.
Breaking Down the Profit Barriers
Too often middle-level managers are forced to rely upon platitudes rather than hard facts about profit.
What If Most Of The Platitudes About Profit Are Wrong?
- Cash is King – It’s actually an insane prince sucking life from the business.
- Can’t Sell Apples From an Empty Cart – Way too many of the apples are rotten and nobody wants them.
- Sales Solves All Problems – Most firms grow in a way that lowers profit rather than raising it.
The Real Profit Drivers
Profit anecdotes versus profit facts? Which do you want to use to make decisions about your business?
The largest sample of distributor profitability ever undertaken reveals what actually drives profit across a wide range of distribution industries. The conclusions shatter much of the conventional wisdom in distribution.
Firms that employ the right combination of the Critical Profit Variables produce a Return on Assets and a Pre-tax Profit Margin that is twice as high as the typical distributor. It is a massive difference.
“This is the single most important book ever written on profitability in distribution.” – Bill McCleave
Question of the Day
We feel we have to get more price aggressive to drive up our sales volume. How large of a sales increase will be required to offset a price cut?
Probably a lot more than you think.