BLUE HAWK management series ... Product profitability

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Profitable Product portfolio www.gfbridge.com Contact Andre Gien [email protected] Management ideas from BLUE HAWK Financial Performance

description

Based on the ongoing goal of discovering where islands of profit exist, this week we take at look at product. Identifying what product and who is buying them ensures focus and help us to reduce risk.

Transcript of BLUE HAWK management series ... Product profitability

Page 1: BLUE HAWK  management series ... Product profitability

Profitable Product portfolio

www.gfbridge.com

Contact Andre Gien [email protected]

Management ideas from BLUE HAWK Financial Performance

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The ProblemWhich products are making the most money

Which products are the most profitable

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What we want

Those high volume product that have better than average margins

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So what do we know

4856 out of 19,427 products

AND

337 out of 1,348 customers

Represent 91% of our revenue and

84% of our margin

Revenue to margin gap

The smaller volume products are making a significant margin contribution

……..9% of volume = 16% of margin

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Getting familiar with the top performers

Traffic lights are a powerful optic

Products highest volume first

Action:Have someone accountable for product performance

during the month so this does not happen

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How are the top performers are trending

Top performing product A

Top performing product B

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Determine the most profitable product groups

1,934 products are delivering a margin of greater than 41%

Yea but!! I am sure most

of those products have small volumes

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Segment your products by revenue size

1748 Products deliver more than

$1,748 revenue per month

But I am sure many of these large

product volumes are at lower

margins

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I represent the large volume products but some part of me is not that profitable

I represent the most profitable products but some part of me does not do that much volume

You have found me .I have good volumes and good

margins This is where I make the money

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Problem solved – High revenue high profit products

High profit segments

Looking for those Products who produce more

than 40% of total revenue and

those that produce more

than 34% margin

Product segments by revenue size

(top 3% of revenue delivered by 562

products)

Product margin %-Products that

produce more than 41% margin

-Products that produce 34% to 41%

margin

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Who are these high profit Products

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Which customers are buying high volume product with great margins

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Want to improve sales and margins

But You don’t want to learn new software You know you wont have the time to use the new tool

properly and neither will anyone else The cloud is something you worry about when you want to

know if its raining or not.

You want the facts and you want them in ways that you can make a difference

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Good sales intelligence will

Increase sales by up to 5 %Improve margins by 2%

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Why not outsource your sales intelligence

We willInstall the required applicationsReview your data Determine

Where you can growWhere opportunities exist to sell more

product to existing customers (increase wallet share)

Where you can improve your margins Where you are at risk

Provide you with a monthly portfolio review

Deliver an action plan to get it done

Once off set up fee

$700.00

$800.00 per month*

Can cancel when ever you

wish

Cost

*Up to 10,000 active products, larger data structures may be more

Contact [email protected]

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Rapid improvement of profit, cash and returns with enduring cultural

impact

Individual customer growth

Product and customer portfolio optimizationAnalysis | Design | Implementation

Financial Statement excellence

Performance consulting

GFB Service Portfolio Passion for Intuition powered by Evidence

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Contact

Andre Gien

[email protected]

925 323 2802

Andre is our Evidence Wizard. He combines the Passion of intuition with the Power of Evidence to weave amazing stories that reveal the secrets and treasures that are locked within your business.

He has deployed the evidence based management discipline in over 150 different companies releasing more than $500 million in value and more importantly, demystifying the complexity for thousands of people.

Andre's favorite quote:

"If you change the way you look at things, the things you look at change"