Do you know…
- … that between 20% and 40% of customers are not profitable in organizations?
- … which products generate profits and which generate losses?
- … which customers add value to your organization and which destroy it?
- … what service elements should you give to each customer to ensure sales and profitability?
- … how should you differentiate prices between customers, regions, distribution channels?
- … how to accurately assign indirect expenses between the areas that consume them?
At what stage is your cost system? Does it allow you to easily obtain the cost of your products, your customers, your distribution channels, branches or sales regions?
Organizations that do not accurately know the costs of their products or services and the profitability or loss generated by each customer, branch, distribution channel or sales region face serious disadvantages in today’s competitive environment.
Profitability Analysis
In the current competitive environment, profitability analysis has become very important for:
- knowing which products are profitable and which ones generate losses
- identifying the clients that add value to those that destroy it
- correctly allocating resources by business segment
- determining the optimal product portfolio by channel or client
- establishing a differentiated pricing strategy among the clients or markets served based on their real profitability.
- correctly allocating corporate, indirect, or shared services expenses.
- knowing precisely the service elements that must be provided to each client based on sales or profitability
- having a budget with an “operating level” approach instead of a budget with a “level of operation” approach. “accounting”
Implement a Cost and Profitability System to:
- Capture cost reduction opportunities
- Increase profits
- Improve processes
- Make better business decisions
A Cost and Profitability System must be implemented considering the organization’s objectives.