Profit Myths in Wholesale Distribution: The Truth About Sales, Margins, Inventory, and Expenses

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This research study is published by the NAW Institute for Distribution Excellence, a leading publisher of research exclusively for and about the wholesale distribution industry. More>>

Albert D. Bates, DBA


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Al Bates of Profit Planning Group has spent more than 30 years analyzing distributor financial statements. His findings boil down to this conclusion: Much, and possibly even most, of what distribution managers know about improving profitability is wrong. Good economic times mask this fact, while challenging times make this fact absolutely dangerous! Bates wants you to change the way you think about your business. Some mind-set changes are:

• Replacing GMROI as a measurement tool because it almost always leads to incorrect decisions about inventory
• Appreciating that bad debts may not always be bad
• Understanding that lowering inventory is frequently a bad idea
• Accepting that sales growth can be too fast as well as too slow
• Identifying why most sales force commission plans don't work the way they are supposed to.

What Readers Have to Say

“Al Bates cuts through the dry accounting to get to the bottom-line benefits: good horse sense and implementable concepts that are not always apparent (and are even counterintuitive) in the everyday lives of most branch managers.”
Douglas Fink, President, Pennsylvania Paper & Supply




Albert D. Bates, DBA

Al is Founder and Chairman of the Profit Planning Group, a research and executive education firm in Boulder, Colorado. The firm works exclusively in the area of corporate financial planning.