Merrifield: Average distributor has no cost-to-serve model
Longtime industry consultant Bruce Merrifield told attendees of the May ASA Industrial Piping Division Open House Breakfast Forum that by definition, 80% of all sales territories are money losers.
In a wide-ranging hour-plus-long talk, Merrifield dispensed a plethora of advice to help companies improve on that front and stressed a key driver to greater profitability centers on a cost-to-serve-model — calculating the profitability of a customer account.