Collins Computing, Inc.

Make the Change from Being ‘Mr. Popular’ to Being ‘Mr. Profitable’

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In the distribution business, you can’t please everyone and make a steady profit. The key is to segment your market so you can serve a targeted group well and properly analyze their unique needs. Otherwise, you’re holding on to inventory you don’t need, losing dollars you can’t afford.

So how do you change from being ‘Mr. Popular’ to ‘Mr. Profitable? Three easy steps…

  1. Segment: Before you make any changes, make sure to segment your customer’s needs. Instead of trying to predict exactly what they’ll buy, focus on what they fundamentally need from an economic and organizational standpoint. Don’t forget to analyze them as a whole and identify the gaps between what they need and what they actually sell.
  2. Target Locked: When selecting who you want as your target market, keep two groups in mind at all times: customers you want to add and customers you want to maintain. Their specific situations have a lot to do with your business plan.
  3. Tailor Your Offerings: Naturally, the next step is to tailor the products you distribute to meet the needs of your target market. This sounds complicated and it is, but extremely important to keep your profitability high and costs low.

When making these changes, it’s important you have an Enterprise Resource Planning (ERP) solution in place to handle complicated data pulls, providing real-time analysis. If you try to accomplish the above steps without one, you may be retracing your steps sooner than you want to.

If you have any questions about how increase profitability at your organization, please contact us at Collins Computing: or [email protected] We can help you become ‘Mr. Profitable’ by using Microsoft Dynamics® GP.


By Collins Computing, Microsoft Dynamics GP Gold Certified Partner in California



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