Maintaining profitability in a tough year
Executive summary: This article analyzes data compiled for the National Association of Electrical Distributors, from the annual Profitability Assessment Report, compiled by Dr. Bates' firm. The article identifies key areas where high-performance distributors outperform the average and discusses the critical profit variables every company needs to monitor.
By almost any standard that could be applied, 2001 was a difficult year financially. Margins were under attack, sales were often sluggish, and collections became more challenging. Despite these difficulties, some firms continued to produce demonstrably higher levels of profit than the typical firm.
In a trying year, the differences between the typical and high-profit firm become even more critical. In common ...