Beruflich Dokumente
Kultur Dokumente
Process Improvements
Examine internal operations
If customers are migrating to smaller order sizes:
Strive to reduce batch- related costs such as setup and order handling.
Electronic systems greatly lower the cost of processing large quantities
of small orders.
If customers prefer suppliers offering high variety:
Customize products at the latest possible stage.
Use information technology to enhance the linkages from design to
manufacturing.
Activity-based Pricing
Most powerful tool a manager can use to transform unprofitable customers into
profitable ones.
Focus on pricing orders, not products
For a standard quantity for each standard product: establish a base price
for producing and delivering.
For special services: may be priced just to cover costs or instead to earn a
margin.
Offer discounts if customers ordering pattern reduces the companys
cost of filling orders
Most profitable
quadrant?
Top Left
Least profitable?
Botom Right
i Cost of Capital
CLV= [(M c)/ (i +(1-r))] Acquisition Cost (if Mt , ct , and rt are about the same
each year and n is large)