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Accidental injury to your customers
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Accidental injury to your customers
Not all customers can be profitable, 20% of customers are being let your profits become negative! We must try to reduce the harm your customers. This is not alarmist, some professional market research agencies through investigation, discovered the true situation. Survey results show that truly make significant profits of enterprises, only 20% of the customers, but there is a 20% profit so they will not only fail to bring about business losses, and this loss of the remaining 60% of customers need to make up for. Many corporate managers do not understand this, resulting in some enterprises, a high income, but very little profit or even losses.
Managers may be surprised that any one customer I can not put less than the purchase price of goods sold to him, how could a negative profit? However, a careful think about, purchase price is the total cost? Clearly not. Managers will say, I am a consolidated gross margin calculation, the price will certainly be higher than the average cost. Now the problem arises, that is, ‘average’ this term.
Everyone knows that is impossible for us to all the goods set a uniform margin, on the contrary, in order to promote and enhance the attractiveness to customers, often will launch a very low gross profit margins (net profit is willing to be negative) and special product, after survey you will find that a considerable number of customers to purchase only those special commodities, while the gross profit margin higher commodity almost never touch. Let’s look at an integral part of operating expenses generated, including personnel, space rent, utilities, equipment maintenance and updating, the resources allocated to a particular sector is fixed, and does not differ profit, low-margin sector can often be In order to improve the number of customers to high-profit sector through the promotion of the sale proceeds to cover. Suppose a sector in these resources accounted for 5%. Th
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