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Customer Profitability

Margin erosion, the two dreaded words in business.  It' s probably no surprise that some of your largest customers have become far less profitable.  Economic conditions, Integrated Suppliers, Buying Groups and other pressures have contributed to this shift.  CBS can help you identify potential profit drains and develop a track to higher profitability.

Our consultant will work with your sales staff to develop customized activity based profit analysis software for your business.  Once developed, the cost based analysis will be applied to the customers for the product lines they purchase.  This analysis will demonstrate the individual customer profitability by applying your company's burden rate and the activity levels dedicated to their account.  You'll use the information provided to implement a strategy to increase the profitability of high burden customers that are diluting your margins and limiting your available resources.

Deliverables

! Business break-even analysis
   - Identifies the break-even revenue required at your current marginal rate
! Hourly Sales Cost analysis
   - Identifies the hourly sales revenue cost per salesperson
! Detailed Sales activity survey
   - The survey identifies the sales activity within researched customers.
! Activity report by customer
   - The activity report identifies the sales activity within researched customers and applies an
        opportunity cost for lost sales time.
! Profitability report by customer
   - Identifies the profitability of each customer analyzed and flags those that are an erosion on
       your company's standard profit margin.
 

Fees

Software only
Complete software package with instructions................................................ $349.00

Consulting Package
Priced according to project requirement
SAMPLE - (120) customers, six salespeople, (2) product lines.................... $2,999.00

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Last modified: 01/27/06