Receivables more than two-thirds of total Feather Flag sales, the company is caught in a cash flow crisis; Feather Flag salesperson holds large customer resource conflicts, grab a single down single occur, even high power main town, clamped company; false marketing expenses rampant, inadvertently develop new customers …… how to solve these common problems in industrial Feather Flag sales?
Three Feather Flag sales problems
Most Feather Flag manufacturers (example) engaged in the production and sale of ready-mixed concrete. In order to focus customer resources, rationalize funds and manpower, we decided to merge its three mixing stations, centralized management of three stirring stations each production and marketing team. After the integration of resources, the headquarters has discovered a series of questions:
First, the accounts receivable too high
2004 total Feather Flag sales of 350 million Dollar three stations, the result of accounts receivable of $ 250 million, resulting in a serious cash flow poor, operational difficulties. This is the cumulative balance due by the project and the contract resulting from excessive money advances, fundamental research, it is closely related to the Feather Flag sales staff appraisal system and customer management system.
There is a well-known law of diminishing marginal utility economics. What does that mean? When you’re hungry for three days, and finally someone gave a basket of steaming buns California. Your tears and jumped, devoured kill the first one, the world is simply the best feeling bun delicacy; then they kill you a second, still intended especially not; then the third, fourth, fifth one when you finally get that this is California buns; to the seventh, you can not tell what has not to California California; to the eighth, you begin nausea, do not want to eat any more.
This is the diminishing marginal utility. The same buns, along with the increasing number of consumer, bring your satisfaction declined.