Profit-the ultimate goal of pesticide enterprises-the ultimate goal of enterprises

Sales focus on how to sell goods, marketing focuses on meeting demand, and profit focuses on how to make money. Therefore, pesticide enterprises should develop their thinking mode around the goal of "profit" to avoid directional errors. We often find that many pesticide enterprises have made great efforts in products, sales and marketing and made relatively great progress. The sales volume is increasing and the market share is increasing, but the profit has not changed much, even getting thinner and thinner, and the more you sell, the more you lose. "For several years, they have no money in their pockets."

The decision-making starting point and resources of most pesticide enterprises are not closely combined with "how to achieve profitability", "how to improve profitability" and "how to make profits continuously". Without profit, we can't survive and develop. There are not a few such pesticide enterprises (especially some large and medium-sized enterprises, on the contrary, some small enterprises have very clear profit targets, which is the fundamental reason why small enterprises in the agro-chemical industry still have a place), but they can be seen everywhere and are increasing.

Product is the foundation, service is the means, brand is the tool, marketing is the process, and profit is the foundation. The profit model studies and pays attention to the profit source, generation process and output form of enterprises. In the final analysis, it is to find out where and how enterprises make money. Profit model is different from sales model and marketing model. The most fundamental difference is that sales focus on how to sell goods, marketing focuses on meeting demand, and profit focuses on how to make money. Therefore, pesticide enterprises should develop their thinking mode around the goal of "profit" to avoid directional errors.

Focus on purchasing and find ways to make profits.

Traditionally, procurement is mainly regarded as an auxiliary function and has no place in the enterprise structure. Its traditional function and mission is to obtain high-quality products and services at the lowest possible cost. In fact, for general pesticide enterprises, procurement costs can account for 50% to 70% of their annual income. Even if it is slightly reduced on the basis of this cost, it will have a significant impact on the enterprise. According to the survey of Aberdeen Group, the effect of reducing purchasing cost 1 USD is equivalent to the effect of increasing sales by 5 USD. Therefore, focusing on procurement, paying attention to the hidden value and cost-saving space in the procurement of raw materials and other materials, tapping the procurement potential and bringing returns to the profits of pesticide enterprises.

Pay attention to channels and improve profitability

Usually, salespeople pay attention to the big customers with the highest sales, and seldom pay attention to profits. Traditional salespeople are deeply influenced by "selling goods = making money", and few salespeople analyze customers' profit indicators.

To analyze a customer's profit index, we need to know the costs incurred in the process of cooperation with customers. The channel transaction cost of pesticide enterprises can be roughly divided into the following items: contact business, transportation cost, promotion activities, policy support, promotion support, personnel support, coordination cost, injury cost, return cost, return depreciation and so on. Through comprehensive analysis, we can find out which customers have high profit index; Which customers have profit potential; What customer profitability indicators can be improved and promoted?

The improvement of customer profit index can start from the aspects that customers value most, because what customers value is precisely the part of cost increase. Minor changes in technical support, product quality, packaging appearance, delivery date, policy inclination, promotion service, price advantage, personnel quality, special requirements, etc. Will bring about an increase or decrease in costs.

With channel as the center, the real value of customer profit analysis depends on how to use these materials and data. Usually in the channels of pesticide enterprises, a small number of customers bring profits to the company. Most customers, especially big customers, may consume the company's profits. Therefore, on the one hand, pesticide enterprises should strive to transform low-profit customers into high-profit customers, guide them to sell products with higher profits, increase sales and reduce extra costs. Every detail needs a relative strategy, because even a small change will greatly increase profits. On the other hand, we should pay attention to the improvement of the profit rate of big customers. The profit margin of most pesticide enterprises' major customers is relatively poor. Big customers often think that their sales are large and deserve special care, such as price, packaging, policy, promotion, promotion, personnel, credit, rebate and even some special requirements. The cost of meeting these requirements will reduce the company's profit, and how to improve the profitability of large customers is very important to the company's profit. At the same time, pesticide enterprises need to pay attention to potential profitable customers. Some customers can't bring a lot of profits to the company in the short term, but over time, they may become the most potential customers of the company.

Focus on channels and manage customers accurately. The ultimate goal is to find customers who are making money for the enterprise and customers who will make money for the enterprise in the future. What pesticide enterprises should do is to provide perfect service and support to customers who are making money for the enterprise, so that they can continue to make money for the enterprise. For customers who will make money for the enterprise in the future, we will implement a policy tilt and decisively invest resources and services. In this way, the limited expenses of pesticide enterprises can be correctly invested in places that can produce the greatest return.

Focus on products and increase profit margins.

A sound product structure is like planting a cash cow for an enterprise, which is inexhaustible. How to effectively allocate the limited resources of enterprises to a reasonable product structure and obtain profits is the key to whether pesticide enterprises can win in the fierce competition.

The product development strategies of pesticide enterprises are nothing more than the following: following the trend, focusing on goals, subdividing needs and product groups. At present, the vast majority of enterprises adopt the imitation strategy. Because of neglecting the analysis of their own conditions and strength, most enterprises have developed many problem products, and even become "thin dog products that can't be turned into dogs".

How to rationally allocate the product structure of enterprises? First of all, enterprises need to understand three questions: where am I? where am I going? How do I get there? As the old saying goes, people know themselves. For enterprises, if they want to find their own development path, they must first know where they are now. This includes: where is the enterprise currently in the industry? What is the current situation of the enterprise? What resources does the enterprise have now? What is the competitive advantage of enterprises? What are the problems existing in enterprises now? Only by answering these questions clearly can enterprises have a clear concept of reality and a realistic basis for product construction.

After enterprises have a clear understanding of themselves, they should comprehensively sort out the product structure. Through the application of Boston matrix, four different enterprise product structures can be drawn, namely: one is crescent ring, and the distribution of enterprise products is crescent ring in Boston matrix, which is the symbol of enterprise success. There are many products with big profits, many star products, and less sales of problem products and thin dog products. The second type is black briquette, and there are no or few enterprise products in the third quadrant. The distribution in the Boston matrix shows a big black sphere, and the enterprise has no profitable products. Third, the southeast corner, the distribution of enterprise products in the Boston matrix is concentrated in the southeast corner, which is the unsuccessful performance of the enterprise, indicating that the number of thin dog products is large and the product structure of the enterprise is declining. Fourthly, the distribution of enterprise products in the Boston matrix is concentrated in the northwest, which shows that there are many star products in the enterprise product structure and there is potential for development. Through the analysis of four quadrant method, enterprises can grasp the present situation of product structure and predict the future market changes, and then allocate enterprise management resources effectively and reasonably.

The improvement of product strength is a result of the improvement of the overall ability of enterprises, and the product construction of enterprises is a continuous systematic project. Only when pesticide enterprises continuously present one excellent product after another to people and get their approval can they have a source of profit. Therefore, it is a belief that a mature pesticide enterprise must insist on carefully launching every product and every specification, and strive to do every product well.

Focus on the system and build a profitable team.

Many enterprises regard sales as the leader of all their work, and the heavy responsibility of enterprise profit is mostly borne by the marketing team of the enterprise, and the enterprise system is mainly designed for the marketing team. The focus system referred to by the author is not only the marketing "basic law" formulated by the marketing department, but also the "sub-law"; It also includes the "fundamental law" of various management systems of enterprises relative to other positions, that is, the "parent law".

Facing the harsh business environment, the profit of the enterprise is not only an important task of the marketing team, but also the focus of every employee of the enterprise. Take the system as the center, realize the perfection of the system and the diversification of assessment, and maximize the profits of pesticide enterprises.

Focus on production and grasp the source of profit

Where is the profit source of pesticide enterprises? There is no doubt: production. Production is the starting point to generate profits. How to sell it if it is not produced? How can we make a profit without sales? Only by grasping and controlling from the source can enterprises truly enhance their ability to resist risks and achieve long-term stability. Focusing on production is the first step of pesticide enterprise management. Managing profits simply means controlling production costs, such as saving raw materials and energy. These are effective ways to reduce production costs, but they are by no means all. In order to manage greater profits, we need to start from various aspects, such as implementing cost control system and establishing relevant incentive and restraint mechanisms; Innovative technology, technology, management and workflow; Reasonable control of labor costs, office expenses, purchase price of materials, capital occupation fees and other related expenses.

The overall situation of environmental and competitive fission has been decided. The first thing that pesticide enterprises face is the big test of profit model selection. Pesticide enterprises must change their accustomed thinking and redesign their business models from the perspective of profit.