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© 2016 Roger Harrop Associates www.rogerharrop.com
Price/Perception Matrix™
Price
Perceived Added Value
Commodity
Buyer
High Added Value Product/Service
You
© 2016 Roger Harrop Associates www.rogerharrop.com
250g bag ground coffee
£3.0010 x coffee pods
£2.90
£1.20/100g £5.80/100g
29p/cup £2.60/cup
© 2016 Roger Harrop Associates www.rogerharrop.com
Margin % Sales£k
Approx %age direct
Strategic Import’ce /
10
Agreed Action
Comments
RE Buildings 5.0 65 44 1 CMargin maybe around 8.6%
GE Constr 9.0 97 0 8 AMargin maybe 22% after rebates
Dave Hutchinson 9.6 182 0 2 C
Border Steel 8.6 377 73 7 A
Sherwood 8.7 102 - Gone bust
Mervyn D 12.7 64 46 3 C
Balfour K 12.6 44 0.4 ? ?
A&J Wilson 15 50 22 - D
WA Forster 12.0 55 51 4 C
Douglas 11.6 230 52 ? D
Keith Wilson 13.8 49 60 ? ?
M&S 12.8 417 26 8 A
RJ Fry 16.0 85 31 6 C
RK&E Hunter 18.5 45 0 8 B
John Sisson 17.6 53 0 ? D
Shermaynes 19.3 47 6 ? D
Jarow 16.8 88 22 8 B
Fisher 19.8 42 0 ? D
D&M Porter 20.0 122 29 ? ?
Agreed action key:
A: No actionB: Gently raise margin to 20%C: Raise margin to 20% now
D: Sales strategy to increase sales and margins over time – monitor regularly
© 2016 Roger Harrop Associates www.rogerharrop.comSource: Proudfoot/Ericsson
52%
Travel
25% Travel
&
&
Admin
Admin
15% Service
15% Service
35%
Active
23%
Selling
Active Selling
10% Prospecting
25% Prospecting
Salesperson’s Time
33%
60%
© 2016 Roger Harrop Associates www.rogerharrop.com
Source:Forrester
Millennials
Carry out every transaction in their life through a smart phone
41%
© 2016 Roger Harrop Associates www.rogerharrop.com
Lower Cost n Direct costs n Labour costs n Overtime costs n Rework costs n Operating efficiency n Change over time Shorter Lead Time n Throughput time n Delayed production
monitor n Schedule achievement n Inventory levels Quality n First time okay rate n Rectification time n Scrap Rates n PPM levels n TPM achievement n SPC capability
Continuous Improvement Cycle
Order Fulfilment Quality Waste
Reduction
FlexilbilityContinuous Flow
© 2016 Roger Harrop Associates www.rogerharrop.com
Why Customers Leave
Perceived Indifference
68%
Unresolved Conflict
14%
Die/Insolvent 1%
Move 3% Influenced
Away 5%
Get a Better Offer 9%
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of Customers
Frequency
Average Order Value
£5000
2pa
1000
+3%
+3%
+10%
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of CustomersFrequencyAverage Order Value
£50002pa1000
+3%+3%+10%17%
GROWTH!
© 2016 Roger Harrop Associates www.rogerharrop.com
Number of Customers
Frequency
Average Order Value
£5000
2pa
1000
+3%
+3%
+10%
© 2016 Roger Harrop Associates www.rogerharrop.com
Pros
pect
ing
Sales Management Matrix™
£
StarJunior
CowDog
© 2016 Roger Harrop Associates www.rogerharrop.com
Pros
pect
ing
Sales Management Matrix™
£
StarJunior
CowDog
Brian
Mary
Dave
Sunil
Richard John
Darren
Laura
Susan
Colin
© 2016 Roger Harrop Associates www.rogerharrop.com
Pros
pect
ing
£
StarJunior
CowDog
Distributor Management Matrix
© 2016 Roger Harrop Associates www.rogerharrop.com
9 Laws of Persuasion
Power
power, authority, strength
Consistency
take a postion & stick
Expectancy
eg. placebo
ContrastReciprocityAssociationConformityScarcityFriends
eg. GAP insinclined to give backendorsementgo with majorityperceived limitedyou like
© 2016 Roger Harrop Associates www.rogerharrop.com
9 Laws of Persuasion
Power
power, authority, strength
Consistency
take a postion & stick
Expectancy
eg. placebo
Contrast
Reciprocity
Association
Conformity
Scarcity
perceived limited
Friends
you like
endorsement eg. GAP ins
inclined to give backgo with majority
© 2016 Roger Harrop Associates www.rogerharrop.com
The CATSDEC process
“I’ll think about it”
Close
Total
Subject toDeal withEasy?
Catalogue Agree
© 2016 Roger Harrop Associates www.rogerharrop.com
Marketing Sales
create impact
Unaware Aware Comprehension Conviction Action
discuss specifics
build credibility
provide proof
The Universal Buying Process
© 2016 Roger Harrop Associates www.rogerharrop.comSource: Roland Berger Strategy Consultants
2030 Global Trends
Opp
ortu
niti
es
Risk
Demographics population 6.9bn to 8.3bn
ageing +5 years
urbanisation 59%
Globalisation TICKs gdp +7.9%pa
next 11 gdp +5.9%pa
Resources energy demand +26%
water demand +53%
commodities rare metals/food
Climate Change CO2 +16%
warming +0.5ºC - 1.5ºC
ecosystem extremes
Technology diffusion high speed
innovation change lives
life sciences nbt
Knowledge know how 55% in 2ndary edu
gender gap narrowing
war for talent demand>supply
Responsibility cooperation nations
ngos +++
philanthropy +++
© 2016 Roger Harrop Associates www.rogerharrop.com
100
50
20
20
10
Electrify Profit Matrix™
Last Year Next Year
Sales
Cost of Sales
People
Overhead
Profit
Why Things Go Wrong
© 2016 Roger Harrop Associates www.rogerharrop.comSource: The Logic of Failure : Dietrich Dorner
No Clarity of Purpose
Emotional Commitment to the Past
No Systematic Thinking
Law of Unintended ConsequencesLoss of FocusNo Visulalising
over TimeBias Towards the
Present
© 2016 Roger Harrop Associates www.rogerharrop.comSource: The Logic of Failure : Dietrich Dorner
No Clarity of Purpose
No Systematic Thinking
Law of Unintended Consequences
No Visulalising over Time
Bias Towards the Present
Loss of Focus
Emotional Commitment to the Past
Why Things Go Wrong
© 2016 Roger Harrop Associates www.rogerharrop.com
Downwards
Outwards Outwards
Upwards
3D Leadership
© 2016 Roger Harrop Associates www.rogerharrop.com
The Change House
The Contentment RoomSun
Lounge
The Denial Room
Dungeon of Denial
The Confusion Room
Paralysis Pit
Wrong Direction Door
The Renewal Room
© 2016 Roger Harrop Associates www.rogerharrop.com
Source: DBERR
Why do you follow someone?
“A feeling of fun, energy and
excitement”93%
© 2016 Roger Harrop Associates www.rogerharrop.com
:: BUSINESS EXPERT :: AUTHOR :: INTERNATIONAL SPEAKER
www.rogerharrop.com