September 25 2014
Balancing Cost & Margin with Small Customers
44
18
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Predicting profitability of an order by measuring average margin is ineffective. Averages are susceptible to outliers and rarely represent the true value of any individual measure within the set. In this article, the authors examine flaws in conventional thinking about margin and provide practical ways to better manage small orders.
This article includes:
- Common misconceptions about how to measure customer profitability
- Better ways to measure the impact of small orders
- Tips for how to improve profit from small customers
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Making Money with Small Customers
- Measuring the Customer Experience
- Cost-Effective Channel Alignment
- Premium
Earlier this year, Tacoma, WA-based Stellar Industrial Supply announced the addition of Larry Davis, former president of ORS Nasco, to its executive team as executive vice president and chief commercial officer. The move was part of a strategy by Stellar to grow “faster and more effectively.” MDM Publisher Tom Gale recently spoke with Stellar’s executive team, including President & CEO John Wiborg, Executive Vice President & COO Steve Slater and Davis, about the shifts in the market that drove the shift in strategy and where the company is heading.
This article includes:
- Why Stellar Industrial hired Larry Davis
- The goals the distributor has for shifting its strategic focus
- How the move will impact Stellar's customers and partners
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Cost-Effective Channel Alignment
- Who's My Coach? The Changing Role of Sales Managers in Distribution
- Redwood Plastics: Success through Online Engagement
- Premium
At this point, it has become pretty well accepted that data should be a part of big decisions.There are many challenges to becoming highly data-driven, though, from technology limitations to information overload. But one common challenge is the tendency to view an indicator or measurement as something that it’s not.
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Differentiate to Combat Disintermediation
- 2014 State of Distributor Marketing: Distributor Marketing Shifts to Digital
- Disasters Can – and Will – Happen
- Premium
Supply chain optimization is a goal with so many moving parts, it’s sometimes difficult to nail down what places to begin addressing potential changes. In this article, industry experts simplify the options and set the stage for an efficient, long-term process for freight movement.
This article includes:
- Challenges to mitigating shipping costs
- The role of technology in improving shipping efficiency
- How distributors can use shipping to differentiate
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Differentiate to Combat Disintermediation
- 2014 State of Distributor Marketing: Distributor Marketing Shifts to Digital
- Disasters Can – and Will – Happen
- Premium
- Premium
Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.
This index includes:
- Abrasives Products
- Cutting Tools
- Power Transmission Equipment
- Fasteners
- Valves, etc.
- Power Tools
- Material Handling Equipment
- Belting
- Hand Tools
- Misc. Metal
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- MDM 2Q14 Pricing Trends Report
- MDM/Baird Survey: Distributors See Measured Growth in 2Q
- The State of Analytics in Distribution
- Premium
This is the PDF of this issue of Modern Distribution Management.
Table of Contents:
- MDM Interview: Stellar Industrial's Strategic Focus
- Commentary: Analyzing Analytics
- Making Money with Small Customers: Balancing Margin & Cost
- Strategic Options for Shipping Efficiency
- MDM Industrial Inflation Index: August 2014
- MDM Monthly Wholesale Trade Data: July 2014
- News Digest
Are you a subscriber? Simply log-in to view this issue.
- Premium
Predicting profitability of an order by measuring average margin is ineffective. Averages are susceptible to outliers and rarely represent the true value of any individual measure within the set. In this article, the authors examine flaws in conventional thinking about margin and provide practical ways to better manage small orders.
This article includes:
- Common misconceptions about how to measure customer profitability
- Better ways to measure the impact of small orders
- Tips for how to improve profit from small customers
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Making Money with Small Customers
- Measuring the Customer Experience
- Cost-Effective Channel Alignment
- Premium
Earlier this year, Tacoma, WA-based Stellar Industrial Supply announced the addition of Larry Davis, former president of ORS Nasco, to its executive team as executive vice president and chief commercial officer. The move was part of a strategy by Stellar to grow “faster and more effectively.” MDM Publisher Tom Gale recently spoke with Stellar’s executive team, including President & CEO John Wiborg, Executive Vice President & COO Steve Slater and Davis, about the shifts in the market that drove the shift in strategy and where the company is heading.
This article includes:
- Why Stellar Industrial hired Larry Davis
- The goals the distributor has for shifting its strategic focus
- How the move will impact Stellar's customers and partners
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Cost-Effective Channel Alignment
- Who's My Coach? The Changing Role of Sales Managers in Distribution
- Redwood Plastics: Success through Online Engagement
- Premium
At this point, it has become pretty well accepted that data should be a part of big decisions.There are many challenges to becoming highly data-driven, though, from technology limitations to information overload. But one common challenge is the tendency to view an indicator or measurement as something that it’s not.
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Differentiate to Combat Disintermediation
- 2014 State of Distributor Marketing: Distributor Marketing Shifts to Digital
- Disasters Can – and Will – Happen
- Premium
Supply chain optimization is a goal with so many moving parts, it’s sometimes difficult to nail down what places to begin addressing potential changes. In this article, industry experts simplify the options and set the stage for an efficient, long-term process for freight movement.
This article includes:
- Challenges to mitigating shipping costs
- The role of technology in improving shipping efficiency
- How distributors can use shipping to differentiate
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Differentiate to Combat Disintermediation
- 2014 State of Distributor Marketing: Distributor Marketing Shifts to Digital
- Disasters Can – and Will – Happen
- Premium
- Premium
Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.
This index includes:
- Abrasives Products
- Cutting Tools
- Power Transmission Equipment
- Fasteners
- Valves, etc.
- Power Tools
- Material Handling Equipment
- Belting
- Hand Tools
- Misc. Metal
Subscribers should log-in below to read this article.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- MDM 2Q14 Pricing Trends Report
- MDM/Baird Survey: Distributors See Measured Growth in 2Q
- The State of Analytics in Distribution
- Premium
This is the PDF of this issue of Modern Distribution Management.
Table of Contents:
- MDM Interview: Stellar Industrial's Strategic Focus
- Commentary: Analyzing Analytics
- Making Money with Small Customers: Balancing Margin & Cost
- Strategic Options for Shipping Efficiency
- MDM Industrial Inflation Index: August 2014
- MDM Monthly Wholesale Trade Data: July 2014
- News Digest
Are you a subscriber? Simply log-in to view this issue.
