Money-Making vs Money-Losing Sales: Finding Hidden Profits
Tuesday, October 10, 2017—Every company has an invisible profit killer hard at work, eating most of its bottom line. Uncovering the true extent and nature of the money-losing business opens the way to significant and permanent gains in cash-flow and profits. If you want to put your company on track to high profits, extraordinary cash flow, fast growth, and market leadership, this is what you need to know.
The greatest discovery in business is the dynamic of money-making and money-losing sales. This has lead to a range of strategies and tactics companies have employed to launch themselves past their competition, and into leadership positions.
Although most business people have long understood that some of their activities and some of their sales were likely unproductive, recent advances in computing horsepower and analytics have revealed the true scale of the issue, and this has opened the door to spectacular profit gains.
Research shows that more than 60% of all invoices lose money, and that 75-80% of profits made on productive activities and relationships are lost to unproductive ones.
In essence, most companies are currently spending more than half their profits on the costs of money-losing activities and relationships. Instead, they could be spending the same money on high-end customer service and aggressive pricing without taking it out of their bottom line.
Understanding this dynamic, and acting on it, companies are seeing unheard-of profit rates. The future belongs to these companies, because the rest will not be able to compete.
Every company has an invisible profit killer hard at work, eating most of its bottom line. Uncovering the true extent and nature of the money-losing business opens the way to significant and permanent gains in cash-flow and profits. If you want to put your company on track to high profits, extraordinary cash flow, fast growth, and market leadership, this is what you need to know.
The balance between money-making and money-losing sales is the greatest discovery in business, and a key opportunity to immediately double or triple your bottom line.
Welcome back to the Profit-Tips library. In this video I want to talk about money-making and money-losing sales, as this is one of the most important discoveries in profitability.
Every company has money-making and money-losing activities, or has transactions that make money or lose money.
What's recently been discovered is how significant the scale of the money-losing business is. And, in fact, in wholesale distribution more than 60% of all invoices are money-losing invoices. Sixty percent!
That means there's tremendous profit opportunity right in the sales that you already have.
If you sit back for a moment, and visualize the profits you made in the best year that you've had in recent memory, and then multiply that by four, or by five, that's how much profit you actually made in that year.
The reason you didn't see that profit on the bottom line is because most of it was consumed by money-losing sales.
Recognizing the magnitude of this opportunity is the starting point that many companies have used to drive permanent and sustainable profit increases like they've never seen before.
I can't stress enough how important it is for executives to recognize this fact, because it absolutely is the gateway to magnificent profit levels that others simply can't achieve.
If you'd like to know more about the sophisticated analytics that help our clients out perform well just about everyone visit our website at http://www.WayPointAnalytics.net.
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