This time of the year many of us are very busy figuring out what to give to our families and friends for Christmas? Management is also busy deciding what to give to charity, to the company’s customers and to the employees? It is not easy to decide what to give but it can be even harder to find the time to acquire and distribute the gifts.
But don’t we forget someone? What about the company itself? When did we last give the company that we care so much for a nice Christmas gift?
What can we give to our company to help it fulfill its dream to become profitable and successful? I have picked a company with the following numbers and based on that I have looked at a few alternative gifts.
Let’s assume the company’s wish list is to double its profits in 2016 and reach 60 M€ in EBIT! Here are a few alternative gifts you can give that all will bring an additional 30 B€ each in profits! Which one do you choose?
The first gift does not seem to fit in under the tree and in addition the Christmas feeling may become a bit stiff if 12 % of the guests have to leave after Santa has distributed the gifts? Why would anyone want give their loving company a cost cutting!?
The second gift on the other hand is very positive but perhaps even Santa would have difficulties to make this wish come true? How would you do this? Increasing profits through sales does not seem to be too easy? What campaign would you run, or how many new customers would you need to find? What kind of realism is it to think that better marketing or additional sales meetings would increase sales by 100 %?
Many may however claim that the third gift is the most unrealistic one to give. It is at least the most unusual one of the three alternatives. If you raise prices by 3 %, many would claim that too many customers would stop buying, but is that really true? If we decide to lower the prices on the most price sensitive parts of our offer and we increase on the rest and through that we can reach an average price increase of 3 %, would any customer stop buying from us?
The problem to give the company a nice Christmas gift is like buying gifts for your parents. Socks, a tie or a book. Those are gifts we usually give so we do it again. They are safe choices becuase we know they will like it. The same goes for profit improvements. We know how to cut costs and we strive for increased sales every day but maybe we do not dare to give the company a different gift because we do not know how it will react.
If you feel for any reason that you are not able to fire 300 people for Christmas or you cannot make your sales force sell twice as much, why do you not give Santa a call and ask what the content is in the third parcel, how you can acquire it and distribute it to your loving company and make the dream come true? You find the contact details to Santa at www.pricegain.com
Av Per Högberg