Saturday, September 13, 2008

Profitability Principal 2 - In order for any profitability formula to succeed you must make sure that it does not conflict with your primary strategy.

You can’t be all things to all people and businesses are no different. Adopting a strategy of being extraordinarily good at all things produces a business that is mediocre at best with nothing to differentiate them from their competitors.

Successful retailers have, by design or happenstance, become very good at one or two things and at least adequate at all other things. That “One Thing”, be it speedy delivery or depth of product offerings, is not to be trifled with lightly.

Make sure that any changes to your business processes do not impede your
excellence at that “One Thing” or you might end up with a net loss due to lower
sales.

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