The Real Profit Drivers with Al Bates
On Wednesday, September 16, 2015 the 18th Annual Wholesale/Distribution seminar took place at Xavier University. Dr. Albert D. Bates, our featured guest, presented to clients by breaking down the profit barriers in distribution, with the overall theme of “The Real Profit Drivers.” Bates is the founder and Chief Sophist of the Profit Planning Group, a research and education firm headquartered in Boulder, Colorado. He heads the firm’s investigations into profitability research for over fifty different trade associations.
The main focus of the seminar revolved around profitability and Bates’ book, Breaking Down the Profit Barriers in Distribution. Throughout the seminar, Al went into detail about wholesale-distributor’s ability to not only achieve profitability, but also to improve profitability by implementing procedures to ensure success.
Al described the three key requirements for successful implementation to profitability:
- Know Where You Are Financially
- Develop a Realistic Plan to Improve Systematically
- Get Everyone in the Firm Moving in the Same Direction
During the course of the seminar, Al reviewed results through a case study based on an actual anonymous client (the largest study of distributor profitability ever conducted), which followed the company’s long-term strategic steps to profitability. Al summarized the three most important influences to profitability as: sales growth, gross margin and operating expenses.
The key take away from the seminar was that most companies do not generate the profits that they should because they continue to lead by conventional perception. Al challenges firms to move beyond the way they have always done things in order to drive growth potential.
For further information on the Wholesale Annual Seminar, including a copy of the audio and presentation handouts, please click here to have a Barnes Dennig representative reach out to you or call (513) 241-8313.