With less cash available to invest in the trade, it is essential to be able to add more value to existing funds, in order to justify more concessions from the customer.
Essentially, this means being able to identify and quantify the real cost of a concession to the supplier. The Incremental Sales required to cover the cost will help to place this in context (If you have a 10% net profit, you need incremental sales of £100k for every £10k invested in the customer).
Establishing the true value of the concession means being able to identify, measure and demonstrate (multi-functionally and at multilevels within the customer) the financial impact of the concession on the customer's bottom line, better than the competition…
All of this means understanding how the money now works in supply and retail, and being able to relate it to the current real-world financials of your company, the competition and the customer…
(Give us a call if you want to get there a bit faster! +44 (0)845 643 4481)
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