Aggregates Manager Digital Magazine
Issue link: http://read.dmtmag.com/i/187920
four different categories. There are no right or wrong ways to do this. The goal is to classify your customers into one of the four quadrants using quantitative methods. A good starting point on volume is to use the 80/20 rule. Obtain a listing of all of your customers by revenue and sort it from largest to smallest. Then, determine how many customers it takes to equal 80 percent of your total revenue. Generally, it will only take 20 percent of your total number of customers to generate 80 percent of your total sales. This revenue figure now becomes the point on your Y axis to classify high-volume and lowvolume customers. Next, determine what your average margin is for your organization. This number will represent the point on your X axis that will be used to classify high- margin from low-margin customers. This part of the exercise often proves to be more difficult as the required data can be more challenging to obtain. Yet, with today's technologies, this step has become much easier. The challenge is to assign the proper cost to each customer. It can be as easy as number of tons purchased times average inventory cost to as detailed as assigning a unique price to each individual transaction. The level of sophistication does not matter at first. Remember that the overall goal is to paint a picture of your customer portfolio. You can always refine it later. critical step, planning. Based upon your findings, you can now start to develop customized sales strategies by quadrant. Should the same sales strategy be used for both high-volume, high-margin customers and low-volume, low-margin customers? Probably not. However; do not fall into the trap of thinking that some quadrants are better than others. This tool is to be used to identify where customers fall and to then aid in the sales strategy related to each of these customers. For instance, take a look at the lowvolume, high-margin customers. Personally, I think that this quadrant is filled with great customers. However; is your sales team servicing them properly? Are the sales methods that you use effective in this category? The average sales team costs approximately $100 per hour. If a b tt uubee h h Ag man CCsalesestrategiese e Aggman Develop make l ear nn f fu makesselarninigg un!n! for each customer type This analysis will yield a lot of initial discussion which will then lead to the next CC onnect with youth of of your onnect with the the youthyour community through education. community through education. Whether are sponsoring an an open Whether youyou are sponsoring open house or presenting in classroom, house or presenting in the the classroom, Aggregates Manager community Aggregates Manager community outreach tools make learning outreach tools make learning fun.fun. Cubee the AggMan makes learning fun! "The"The StoryCubee the the Aggregate" Coloring Book Story of of Cubee Aggregate" Coloring Book Cubee and his aggregate friends take children on a magical Cubee and his aggregate friends take children on a magical journey the quarry to the community to see how journey from from the quarry to the community to see how aggregates are used in our schools, roads, and structures. aggregates are used in our schools, roads, and structures. It's a story combined with with 20 of coloring fun. It's a great great story combined 20 pagespages of coloring fun. For students in grades For students in grades K-3. K-3. PricesPrices range from $1.20-$1.85 per book, based on range from $1.20-$1.85 per book, based on quantity. Customize books with your company quantity. Customize books with your company logo! logo! Over Over 100,000 100,000 sold! sold! C onnect with the youth of your community through education. Whether you are sponsoring an open house or presenting in the classroom, Aggregates Manager community outreach tools make learning fun. Call 800-430-4540 e-mail: Cubee@Aggman.com or visit www.Aggman.com "You're on Rock" Workbook "You're on Rock" Workbook Twenty of earth science facts, activities and and puzzles Twenty pagespages of earth science facts, activitiespuzzles help help juniorjunior geologists, mining engineersearth earth scientists learn geologists, mining engineers and and scientists learn about aggregates. about aggregates. For students in grades For students in grades 4-6. 4-6. PricesPrices range from $1.20-$1.85 per book, based on quantity. range from $1.20-$1.85 per book, based on quantity. Customize books with your company Customize books with your company logo! logo! Cubee AggMan T-shirts Cubee the the AggMan T-shirts Fun for kids ages, this 100% pre-shrunk cotton t-shirt is a Fun for kids of all of all ages, this 100% pre-shrunk cotton t-shirt is a long-lasting reminder of your or presentation. long-lasting reminder of your eventevent or presentation. Sizes:Sizes: Youth XS (2-4); Small (6-8); Medium (10-12); Large (14-16); Youth XS (2-4); Small (6-8); Medium (10-12); Large (14-16); AdultAdult Small (34-36) Small (34-36) Price: Price: $6.95 per t-shirt 15% 15% shipping & handling). $6.95 per t-shirt (plus (plus shipping & handling). Quantity discounts available. Quantity discounts available. Call 800-430-4540 Call 800-430-4540 28 Cubee_AGRM0512.indd 1 e-mail: Cubee@Aggman.com or visit www.Aggman.com e-mail: Cubee@Aggman.com or visit www.Aggman.com 4/12/12 2:40 PM Aggregates Manager October 2013 Sales&Marketing_AGRM1013.indd 28 9/19/13 4:32 PM