July 2016 Culling Low Margin Items, Discounting Salespeople Practices, Tesla Price Revolution and Demise of Trump’s Brand

Will Culling Low Margin Items Actually Destroy Profits? An Exploration into Economies of Scope

July 2016 Pricing, Product

Firms often sell low margin items because customers seek the low margin items and, when buying, buy higher margin items as well. These low margin items can make sense through their enablement of the firm to profit from economies of scope. Killing low margin items can make sense in some cases, but other cases doing so will kill the firm.

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How to Stop Discounting Practices of Salespeople from Destroying Your Profits

July 2016 Communication, Corporate

Neither revealing the company’s cost structure to front line salespeople, nor managing sales performance metrics and salespeople’s compensation with constantly varying variable costs isn’t strategically beneficial or managerially realistic. Alternatively, profit sharing plans have been used, but they don’t reward individual performance, just team performance.

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Tesla’s Software Upsell

July 2016 Product, Selling

What Tesla has changed for the automotive industry is now that upselling process can continue long after the purchase of the vehicle. If you buy a S60 then get a better-paying job with a longer commute, you can choose to upgrade with essentially no additional cost to serve for Tesla. And spacing out the payments for the vehicle and later the capacity may make the original vehicle purchase more palatable for the consumer.

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“A week after Britain’s stunning vote to leave the E.U., the battle lines in the monumental exit negotiations to come are clearer than ever. And they don’t favor Britain.” – The Washington Post

  1. Is there time to turn back?
  2. Britain had to have envisioned a better forecast in forging this storm.
  3. Perhaps the world stage can learn a lesson from such isolating moves.
  4. Is this what the U.S. is after?
  5. …Or will we remain a hub for global transactions?
  6. The fate of Britain may determine our collective economic conscience.
From the Archives

Will Culling Low Margin Items Actually Destroy Profits? An Exploration into Economies of Scope

» March 2016

Are Drug Companies Ripping Us Off?

» March 2016

Maintaining Pricing Excellence During Currency Depreciation

How to Stop Discounting Practices of Salespeople from Destroying Your Profits

» June 2016

Why Relationship Marketing Has Never Worked for the New Car Purchase

» June 2016

Profit-Based Incentives: Doable and Valuable through Alignment of Goals

Tesla’s Software Upsell

» May 2016

Creative Destruction Strikes Again

» December 2015

Standard Service Pricing - Easy Enough but Not So Easy

Will Bid for the Presidency Destroy the Trump Brand?

» May 2016

Free Trade, Protectionism and Marketing

» December 2015

Ensure Your Digital Marketing Strategy Supports the Business Goals