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Wholesale
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This
was a profitable, growing, successful business which nevertheless
wanted to improve profitability still further.
Application of Cogent principles showed that the customers
served by the company had very different patterns of profitability.
One particular customer sector offered very good profitability
together with the opportunity for significant expansion of
volume. Focusing marketing effort on this previously unidentified
area produced immediate and significant gains in volume.
The company was also realising very different levels of return
from different product sectors, and had areas of its business
which were generating very significant losses. Action plans
were developed which showed means of redesigning the structure
of the business with a potential profit improvement worth in
excess of £10 million per annum.
Subsequently this client was so pleased with the results of
the study that Cameron's M.D. was invited to address the annual
conference of the Federation of Wholesale Distributors on how
to improve the profitability of frozen foods sold through cash
and carries. Some months later the Federation's newspaper reported
that both members and frozen food suppliers had achieved higher
profitability through following Cameron's recommendations.
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