Upload
andre-gien
View
557
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Based on the ongoing goal of discovering where islands of profit exist, this week we take at look at product. Identifying what product and who is buying them ensures focus and help us to reduce risk.
Citation preview
Profitable Product portfolio
www.gfbridge.com
Contact Andre Gien [email protected]
Management ideas from BLUE HAWK Financial Performance
The ProblemWhich products are making the most money
Which products are the most profitable
What we want
Those high volume product that have better than average margins
So what do we know
4856 out of 19,427 products
AND
337 out of 1,348 customers
Represent 91% of our revenue and
84% of our margin
Revenue to margin gap
The smaller volume products are making a significant margin contribution
……..9% of volume = 16% of margin
Getting familiar with the top performers
Traffic lights are a powerful optic
Products highest volume first
Action:Have someone accountable for product performance
during the month so this does not happen
How are the top performers are trending
Top performing product A
Top performing product B
Determine the most profitable product groups
1,934 products are delivering a margin of greater than 41%
Yea but!! I am sure most
of those products have small volumes
Segment your products by revenue size
1748 Products deliver more than
$1,748 revenue per month
But I am sure many of these large
product volumes are at lower
margins
I represent the large volume products but some part of me is not that profitable
I represent the most profitable products but some part of me does not do that much volume
You have found me .I have good volumes and good
margins This is where I make the money
Problem solved – High revenue high profit products
High profit segments
Looking for those Products who produce more
than 40% of total revenue and
those that produce more
than 34% margin
Product segments by revenue size
(top 3% of revenue delivered by 562
products)
Product margin %-Products that
produce more than 41% margin
-Products that produce 34% to 41%
margin
Who are these high profit Products
Which customers are buying high volume product with great margins
Want to improve sales and margins
But You don’t want to learn new software You know you wont have the time to use the new tool
properly and neither will anyone else The cloud is something you worry about when you want to
know if its raining or not.
You want the facts and you want them in ways that you can make a difference
Good sales intelligence will
Increase sales by up to 5 %Improve margins by 2%
Why not outsource your sales intelligence
We willInstall the required applicationsReview your data Determine
Where you can growWhere opportunities exist to sell more
product to existing customers (increase wallet share)
Where you can improve your margins Where you are at risk
Provide you with a monthly portfolio review
Deliver an action plan to get it done
Once off set up fee
$700.00
$800.00 per month*
Can cancel when ever you
wish
Cost
*Up to 10,000 active products, larger data structures may be more
Contact [email protected]
Rapid improvement of profit, cash and returns with enduring cultural
impact
Individual customer growth
Product and customer portfolio optimizationAnalysis | Design | Implementation
Financial Statement excellence
Performance consulting
GFB Service Portfolio Passion for Intuition powered by Evidence
Contact
Andre Gien
925 323 2802
Andre is our Evidence Wizard. He combines the Passion of intuition with the Power of Evidence to weave amazing stories that reveal the secrets and treasures that are locked within your business.
He has deployed the evidence based management discipline in over 150 different companies releasing more than $500 million in value and more importantly, demystifying the complexity for thousands of people.
Andre's favorite quote:
"If you change the way you look at things, the things you look at change"