The 2020 Mid-Year Economic Update_long

Uncover Sweet Spots Using Net Profit

This article examines ways distributors can use net profit or net before compensation to segment their markets and target new customer acquisition efforts. The authors argue that this approach will be more lucrative and ultimately easier to implement and less resource-intensive than other methods, including Activity Based Costing.

This article includes:

  • Why net profit or net before compensation (NBC) is a more accurate metric
  • How to measure customer success
  • How to use NBC to target sweet spots for customer acquisition

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:

  • Yes, Customers Want to Hear from You
  • A Simpler Way to Manage Customer Lifecycles
  • Five Profit Drivers Critical to Growth

To continue reading this article you must be a paid subscriber.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.