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Randy MacLean, President — WayPoint Analytics

•profit analytics •profit training •profit strategy

The average distributor makes four times its bottom line, but 75% of those profits are lost to dysfunctional business. This loss is enabled by a fundamental misunderstanding of how profits are REALLY generated and accounted for in a distribution company.

In this video, WayPoint Analytics CEO, Randy MacLean, discusses and debunks some of the most common profitability "myths" plaguing wholesale distribution today, explaining why what many of us believed about profitability simply isn't true. You'll learn about the mechanics of what constitutes a good sale and how an obsession with gross profit has blinded many distributors from seeing unprofitable business secretly eating away at their bottom line. Most importantly, Randy explains what you can do to identify and repair these profit sinks that are within your business.

The information shared in this video is so all-important that MacLean compares it to actual DNA. The discovery of DNA revolutionized science. However, knowing what DNA is doesn't do much on its own – it's only when that knowledge is leveraged to create scientific and medical innovations that it becomes valuable. You'll be amazed to learn what your company can do with this type of knowledge.

Knowing how the business actually works can benefit your company in the same way. Some of the knowledge delivered in this video may seem counter-intuitive and will run against what you may have been taught when you first entered the distribution industry. However, your mentors lacked the information that we have today, and many widely held beliefs from the past simply aren't true. Your learning how to separate fact from fiction will give you an automatic advantage over competitors who may still be denying this information, even as their companies continue to fail years down the road.

Here's one troubling fact: 62.5% of the average distributors' invoices lose their company money. Even more disturbing is that most executives don't really understand how their companies make money. They're flying blind... and most never even realize it!

Their business then becomes a game of catch-up: More profitable parts of their business make enough money for the company to break even. In actuality, your best customers are cluelessly subsidizing their competitors by covering your losses on their behalf. Don't let this happen in your business.

Learn how to identify which customers aren't pulling their own weight and some easy ways to reform that business so you company isn't dragged down with losses. You'll learn, too, how managing cost-to-serve can greatly improve your company's overall profitability as MacLean breaks down the mechanics of profit generation and sets the record straight on some dangerous misconceptions.

By mastering this knowledge, not only will your company become more profitable, but you'll also be able to offer better pricing and service to your best customers – a value that your competitors CAN'T offer because they're forced to charge more to offset losing business – guaranteeing you much higher retention.

If you choose to ignore this information, you make your company vulnerable. Your bottom line will shrink. You'll be forced to charge your best customers more, and you will not be in a position to give them the service they deserve. Ultimately a competitor who understands and uses the principles covered in this video will take those accounts from you. Don't let that be your fate. Let Randy MacLean show you a better way.

Audio file: APIC-2015s-A01.mp3