Talk and Act
Spending dollars to increase profit is a good aspect in boosting your company. But several companies fail to accomplish this type of objectives simply because they don’t give a close look to what’s going on within their company. Research has shown that a good way to gain profit is to begin with your workers, or what we call the employees. A good output and cooperation from the workers will deliver your company an excellent achievement, whatever your line of business is.
Advertising is not the only aspect in increasing profit for your company. It is an excellent idea, but profits don’t originate from advertising only. Remember, an advertisement is an individual’s idea, design and intelligence. And for companies to even start with a small idea, they need to bring out their employee’s full potential.
Tips on how to increase profit through individual development:
Improve your employee’s potential – hiring way too many personnel in a department can cause confusion in their system or routine. Thoroughly study procedures and determine a way concerning how to incorporate these on just a few, yet efficient, personnel.
Set deadlines – most staff spend too much time doing other stuff at the office instead of their own work. Setting a deadline will allow them to prioritise their work rather than diverting themselves to much less important things.
Incentives – small incentives may mean a lot to your employee. Don’t think twice in giving incentives to individuals who have accomplished a good job. It means you acknowledge their hard work and value their ideas.
Initiative – promote initiative. Begin on yourself, working all the way to your personnel. Teach them how to handle more work than what is only given to them. Identify your employee’s full potential and let them succeed in that line of work.
Training – allow your personnel to attend training where they can improve more skills, and also to build camaraderie inside the office.
Be open-minded – respect your employee’s ideas and suggestions. Plenty of regular personnel have bigger ideas than those that are in the highest level. The lower bracket normally sees how business is working in a more detailed way. Get their suggestions and ideas, and put it into action.
Review and revise – whether or not it relates to your workers or finances, it is always recommended to review system flow and allow revisions if necessary. Don’t make the mistake of staying rooted simply because it has been the system used since the start of the business.
Raise Profit by building your team’s capacity to make it work. Not every profits based upon investing a large amount of cash. There is no long term trend when it comes to profitability, and instant downturn can quickly close out your business. A great way in saving it and allow your profits to stay at least minimal, is to promote ties and good relationship with your employees. They are the backbone of the business.
John Pharell, the Founder and Chief Master Trader of learnforexsecrettrading.com, has actively involved in day trading for over 15 years. He has coached hundreds of Forex Newbies and Advanced Traders to learn forex trading and also foreign currency trading, most of whom, in turn, have become part of the Successful forex secret trading Community.
Tags: Business, effective staff, good management, human resources, increase profit
Posted in Business · March 20th, 2010 · Comments (0)
For many manufacturers around the world, marketing/sales are considered more of an art than a science. Companies resist applying hard measures because it is difficult to measure cause & effect—how can you isolate one specific marketing or sales initiative and attribute business success to it?
Frank Lynn & Associates, a global channel consulting firm based in the Chicago area has developed a more formula based approach to the problem of measuring an effective go-to-market strategy. The PPH formula (product-presence-hit rate) is a diagnostic tool to first identify the limiting factors to market strategy effectiveness, then implement discrete changes to improve it and measure the results. Market Strategy
What is the PPH Formula, and how does it provide a measure of strategy effectiveness?
PPH is a formula that breaks market share into measurable components of product/service coverage, sales presence, and hit rate. Factored together, these three variables equate to market share (PxPxH=MS). By breaking your market share into these components, the limiting factors to strategy effectiveness can be quickly identified. And since it is a mathematical formula, the model provides a basis to measure the cost/benefit to any actions the marketer may take to try to boost strategy effectiveness.
A closer look…Multi-channel distribution
What is Product/Service Coverage?
Product/service coverage is a measure of the degree to which your product/service offering is considered a viable alternative to the customer. Assessing product/service coverage begins with understanding what the end user is buying – - including physical product and the service/support provided around it. Product/service coverage determines whether your offering is viable from a form/fit/function perspective.
This assessment includes a review of product line gaps, especially if missing products are being purchased in conjunction with your product offering.
It should also include a look at price points. Consider the “good/better/best” product positioning. Customers focused on a “best” offering will rarely consider a “good” product a viable alternative, and vice versa.
What is Sales Presence?
Sales presence is a measure of how often the customer considers your offering at the time of making a purchase. Sales presence has several contributing factors;
• Geography; i.e. do you have appropriate sales/channel presence in the location where brand/source decisions are made?
• Account; if present in the geography, does your sales organization and/or channel partner have a relationship with the account. Within the account, do you have access to the key decision makers/influencers?
• Decision presence; even if you have generated revenue with this account in the past, are you involved in the current purchase decision? Or is the account awarding business for which you are not allowed to compete?
What is the Hit Rate?
The hit rate measures how often the sale is won. It is a reflection of how well your product/service offering and support align to the decision variables used by your target customer. It is a result of several factors considered part of the traditional marketing mix including: brand preference, price preference, ease to do business with, product/service bundle, technical support, product availability and the manufacturer’s and channel partner’s reputation.
How does the PPH Formula yield actionable guidance for the marketer?
The PPH formula provides granularity to strategy measurement. And it is this granularity that allows strategy changes that yield rapid results. The granularity is provided at an organizational level—product management can gain insights from the product/service coverage analysis, sales management can gain direction from the sales presence variable, and the marketing organization generates guidance to its resource allocation from the hit rate assessment. Executive management also gains insight into where to place its bets based on the cost/benefit trade-offs associated with changes in any of the market share components.
By allowing the effectiveness assessment on a territory and/or market segment basis, the effort allows for a change in your marketing approach away from the traditional one-size-fits-all-markets strategy to an approach that employs individual strategies that are highly focused on targeted segments. channel workshops
For a discussion about the PPH formula contact Karl Edmunds, Vice President of Frank Lynn & Associates at kedmunds@franklynn.com For more information go to: http://franklynn.com
Tags: Business, Distribution, management, Pricing Strategy, Sales
Posted in Business · March 17th, 2010 · Comments (0)