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Executive Brief: How to Have a Profit Rate Above 20%

Randy MacLean, President — WayPoint Analytics

•WayPoint Analytics •profit strategy •Wholesale Distribution Industry •executive briefing •efficiency •efficiency metrics •Randy MacLean •strategy for CEO •strategy for CFO •WayPoint Demo •WP demo •WayPoint presentation

We took a close look at companies that deliver 20% or more to the bottom line, to find out how they do it. Here's what we found.

With the rise of analytics, super-performing companies are emerging, and they're becoming a significant portion of the market. An astounding 9% of companies we looked at have profit rates above what was a top rate only five years ago — more than triple the rate of an average business. These companies convert more than 20% of their revenue to bottom line profit. Some of them, much more.

We decided to take a close look at what these companies were doing that put them so far ahead of the market.

We found four specific markers for super-performing companies:

1. they are really good at the core competence of a distribution company – moving product

2. they had few locations – eliminating duplication

3. they used a super-efficient and effective sales force model

4. they used analytics extensively to pursue opportunities and to drive decision-making

We also found their high profit performance comes at the expense of their competitors. They identify and take the most profitable accounts, while ceding the losers, doing great damage to their opponents in the market.

Why it Matters: Nearly every company needs to become a super-performer, or they'll be harmed by someone who is.

Our clients use deep analytics from WayPoint to be some of the most profitable companies in the world. They know the customers with which they have money-losing dysfunctional relationships, the products that are unprofitable because of how they're sold, and are actively eliminating the losing activities.

At the same time, they know the relationships and products that drive extraordinary profits, and they're maximizing sales in those areas.

Takeaway: Your company needs to deepen its analytics, so your people can capitalize on super-profitable relationships, and optimize those that are not. Both your success, and your survival may depend on it.

WayPoint Analytics website: https://www.waypointanalytics.net

Profit-Tips channel on YouTube: https://www.youtube.com/channel/UCssCXhlLuYm-viiDdb67MKg

Profit-Driven Business Strategy: https://www.amazon.com/Profit-Driven-Business-Strategy-Numbers-Dominate/dp/1530087457

Business Model Generation https://www.amazon.com/Business-Model-Generation-Visionaries-Challengers/dp/0470876417

The Machine: A Radical Approach to the Design of the Sales Function https://www.amazon.com/Machine-Radical-Approach-Design-Function/dp/1626342245

Profit-Ideas website: http://www.profit-ideas.com

Audio file: profit20webinar.mp3

Downloads: profit20webinar.pdf