WHAT IS THE PERFORMANCE OF YOUR OFFER? ISOLATING THE TOP 10% - WILLIAM EASTMAN

PROFIT RADIO..."Let's Grow Together"

Introduction
Today I am wearing my C Hat - Always Selling, Always Closing. That means I am always thinking about fast growth markets, profitable customers, and share of wallet. This focus covers a wide cross-section of the business: Marketing, Sales, and Service

The second issue is the Stage of Growth. We are at Stage V where the concern is to look for ways to optimize the business by increasing profitability. 

Last thought before we start, I want to invite you to my new group on our Community of Commerce - Living the Life . If you are a serial entrepreneur and looking to discuss how to build a business that runs itself so you can start running multiple businesses - this is the right spot.
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Objectives - The WHY
Just like we covered in the last show on Top Grading Accounts (Customers), today we are doing the same thing - looking at products and services to determine what we need to replace, overhaul, or continuing selling.

Given this is our first Reinvention, we are building a process that will remain through the life of the company.

Key Issues - Owner/Manager Perspective:

1. What stage is each product/service in its life cycle,
2. Plot its ROI over time,
3. When should it be replaced or upgraded

What You Need to Know - The WHAT

• Understanding and plotting each product and service's life cycle from prototype through obsolesce;
  • Introduction
  • Growth
  • Maturity
  • Decline
• Access to each products performance over time - startup costs, break even point, revenue over time, production costs over time, margin over time.

What You Need to Do​​ - The HOW

1. Create a lifecycle graph for each product and service
2. Plot costs over time
3. Plot revenue over time
4. Plot margin over time
5. Identify where each product and service is in its lifecycle
6. Rank order all the products, rank order all of the services
7. Identify the bottom 10%
8. Now What?

The purpose of this show was to detail how to create a portfolio of accounts and then TOP/Bottom Grade their performance over the last period.
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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.

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