If you want to know where your 'product profitability' has gone, consider this exhibit. It raises some key issues for manufacturers and distributors:
- There is no inherent profit power in 90% of the product volume sales for a typical distributor
- Why and how are 'supply-chain commodity products' driving margins lower?
- Why can most consolidating distribution channels no longer afford to push new, incremental, even-exclusive, products/lines anymore?
The big question is: how can manufacturers re-deploy their marketing mix dollars into web-based, virtual trade-show site(s) that get the product story to niche end-users ﾖ faster, better, cheaper ﾖ while still re-intermediating and giving incentives to distributors and their sales reps? ...
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If you want to know where your 'product profitability' has gone, consider this exhibit. It raises some key issues for manufacturers and distributors:
- There is no inherent profit power in 90% of the product volume sales for a typical distributor
- Why and how are 'supply-chain commodity products' driving margins lower?
- Why can most consolidating distribution channels no longer afford to push new, incremental, even-exclusive, products/lines anymore?
The big question is: how can manufacturers re-deploy their marketing mix dollars into web-based, virtual trade-show site(s) that get the product story to niche end-users ﾖ faster, better, cheaper ﾖ while still re-intermediating and giving incentives to distributors and their sales reps? ...
Critical Profit Drivers
Economic Update:
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