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Tag Archives: Al Bates

Pricing the Forgettable Last Five Percent

By Dr. Albert D. Bates, President, Profit Planning Group Most distributors continue to lament the pervasive, and possibly increasing, pressures on gross margin percentages. Seemingly, price is outweighing almost every other factor in the competitive arsenal. At the same time, gross margin is one of the “big two” in increasing profits for distributors (the other being operating expenses). This creates ...

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Turning Sales into Profit

Takeaways from MHEDA’s DiSC Report By Al Bates Every analysis of distributor profitability comes to the same conclusions: Three key factors drive profitability. Those factors are (1) the ability to increase sales a little faster than inflation, (2) the ability to maintain an adequate gross margin in the face of competitive pressures and (3) maintaining control of expenses, especially payroll, ...

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Help Stamp Out Budgeting

By Dr. Albert D. Bates For at least 30 years I’ve been extolling the virtues of budgeting in improving company performance. I have been wrong all of this time. It is not that budgeting itself is wrong. It is simply that budgeting alone does not seem to improve profitability. Budgeting must be augmented with a Managerial Profit Plan. Fully implemented, ...

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They’re Back!

An updated look at gross margin and payroll Gross margin and payroll continually prove to be the factors most difficult to bring into line and the easiest to fall out of line. When things are slow, price pressures are inevitable. At the same time, sluggish or declining sales volume almost always results in an increase in payroll expense as a ...

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