Consultant helps analyze customer profitability

Increasing margins, expansion and strategic planning are main focuses of the presentation “Protect the Winners and Fix the Losers: Customer Profitability Analysis for Distributors,” put on by consultant Brent R. Grover with Evergreen Cons

Increasing margins, expansion and strategic planning were main focuses of the presentation “Protect the Winners and Fix the Losers: Customer Profitability Analysis for Distributors,” put on by consultant Brent R. Grover with Evergreen Consulting in Cleveland, Ohio.

Held from 9-10 a.m. on Tuesday, Nov. 3 at the Venetian, the presentation’s main themes included measuring operating profit of transactions and customers, ranking customers by operating profit, segmenting customers based on potential for profitable growth and setting sales policies to focus on operating profit rather than just sales and gross margin. The event is part of the Automotive Aftermarket Product Expo, running Nov. 3-5 in Las Vegas, Nev.

Grover aimed to teach attendees how to elevate margins by 200 basis points, or 2 percent, through smarter pricing and expanding growth by 5 percent per year through a series of small, low-risk acquisitions. He also discussed using a one-page strategic plan to devise a compelling ‘big hairy audacious goal’ and to communicate the plan to employees to help them see their roles clearly and to buy into the company's plans.

“These sessions are sponsored by AWDA (Automotive Warehouse Distributors Association), but the messages are somewhat universal for all of the channel members – the various wholesale distributors and manufacturers – at AAPEX,” Grover says of his presentation’s intended audience. “I enjoy reaching the "C-level" executives but also touching the mid-level managers and sales executives at these companies.”

About the Author

Krista McNamara

Krista McNamara

Krista McNamara is the former Editorial Director for the Vehicle Repair Group at Endeavor Business Media. She oversaw five brands  — Motor Age, PTEN, Professional Distributor, ABRN and Aftermarket Business World. She worked in the automotive aftermarket industry for more than 15 years. 

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