Posts Tagged ‘ strategic planning ’

New Automotive Market Research Reports Available for Purchase

December 19, 2011
New Automotive Market Research Reports Available for Purchase

New automotive aftermarket market research reports are now available for purchase online, direct from Hedges & Company’s new Market Research Store. These marketing research reports are based on consumer perceptions and opinion data, gathered after inviting over 100,000 automotive enthusiasts to participate in a market research survey, and include data never-before reported in the automotive aftermarket. These new research reports fall into two categories. BuyerZoom™ research reports are part-specific and analyze how enthusiast consumers shop for specific products including gaskets, camshafts, cylinder heads, carburetors, engine blocks, intake manifolds, valve springs, valves, rocker arms, pistons,...

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Turn/Earn Calculation and GMROI to Manage Inventory

October 15, 2010
Turn/Earn Calculation and GMROI to Manage Inventory

The Turn/Earn Index and Gross Margin Return on Inventory (GMROI) are two simple ways to help manage your inventory. Turn and Earn to manage inventory Your purchasing manager or accountant may want to justify a SKU (stock keeping unit) with the Turn/Earn Index. Also known as the Turn/Earn calculation or Turn/Earn formula, or simply as Turn and Earn, it’s a simple way to help manage inventory by evaluating your entire inventory or a part number to see if it is worth stocking or selling. To calculate the Turn/Earn index for your inventory, simply multiply...

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Stages of Growth in a Company and ‘Growing Pains’

October 15, 2010
Stages of Growth in a Company and ‘Growing Pains’

As a business grows, it goes through major, distinct phases of growth. These phases have unique characteristics and challenges and require some strategic planning. Recognizing these characteristics (even better, preparing for them) will help you manage your business through these challenges, or “growing pains.” Stage One: $1 million (manufacturer) or $2 million (distributor) The first stage typically hits when your business reaches around $1 million in sales for a manufacturer, or $2 million in sales for distribution. Your business is building momentum, but you’re overworked and need additional help. You’ve been adding employees and...

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How A Price Increase/Decrease Affects Gross Profit vs. Unit Sales

October 15, 2010
How A Price Increase/Decrease Affects Gross Profit vs. Unit Sales

If you want to increase gross margin with a price increase, you should know how gross profit is calculated and assuming a drop in unit sales, how many unit sales are needed to maintain the same gross profit. On the other hand if you’re considering a sale you should know how many additional unit sales are needed to maintain the same gross profit. You need to know how total unit sales can drop (for a price increase) or need to increase (for a price decrease) for gross profit dollars to remain the same. The...

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Rule of Three Marketing: Market Share and Market Dynamics

October 15, 2010
Rule of Three Marketing: Market Share and Market Dynamics

Why do some companies thrive and dominate their market, only to later become an afterthought in history? Most industries and market segments, including the specialty aftermarket industry, will have market share dominated by three competing companies. This article will take that a step further and show how companies can plan a market share strategy that will help ensure profits in the coming years. Rule of Three reviewed To revisit an October 2003 article we wrote for SEMA News, market share is the result of a complex combination of market dynamics, strategy, products and consumer...

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Using the Pareto 80/20 Principle to Analyze your Business and Increase Profits

October 15, 2010
Using the Pareto 80/20 Principle to Analyze your Business and Increase Profits

You’ve undoubtedly heard about Pareto’s Law or the 80/20 principle, although most people only understand 20% of it, 80% of the time. This simple, century-old principle can be used to increase your sales, profits and overall marketing, and is easy to use. Let’s look at how the 80/20 principle can be used to streamline your business, reduce your costs, and increase your profits. First, a quick history lesson: Vilfredo Pareto was an Italian economist and sociologist born in 1848. HIs big discovery, “Pareto’s Law,” claimed in 1897 that basically in any society, 20% of...

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