First let's define channels.

• Channels are different ways to market, sell, and distribute your product and services.

Channels might include:

• Selling through sales employees who are paid mostly on salary
• Sell through sales employees who are paid mostly on commission
• Sell through reps who do not take title before selling your products.
• Sell through distributors who take title before reselling your product
• sell by direct mail
• sell by phone
• sell through TV and radio
• sell through internet

Do you know:

• Do you know how to calculate all the costs of your various channels including general and administrative as well as selling and marketing costs? 
• Which of your channels are unprofitable?
• Which activities makes those channels unprofitable?
• Is your marketing program is aimed at unprofitable channels ?

• .

Do you have an Activity Based Costing system to answer these questions or are you 20 years behind and still using an inaccurate traditional allocation system?

Call John Antos or Jim Brimson at 972-980-7407 to find out how Channel Profitability analysis will help you understand and then take correct action to reach your goals.