Case History#1   The Company A 30-year-old midsize distributor. The Problem Corporate Strategies was retained by this company to deal with gross margin problems. The company’s gross margin was stuck at 19% controlled largely by the volume of government purchases based on sealed bids. Sales had remained about level for the last several years while expenses had inched upwards. When the engagement began, expenses were 19.6% of gross sales. Customer research indicated that many customers were unhappy with shipping accuracy and service levels. The Solution Corporate Strategies implemented a modified “Open Book” communication plan to employees that was tied to the monthly profit sharing statement. The monthly CEO letter kept the potential benefits of reaching the 23% gross margin goal in front of the employees. Outside sales compensation was redesigned to reflect the objectives of the company, especially in the emphasis on new, more profitable lines. Problem tracking procedures were implemented to find and eliminate customer dissatisfiers. Additional training was given to the inside sales group to equip them to deal proactively with customers. Inside sales was given total responsibility for one market segment that had been essentially ignored by outside sales. New reporting and measurement processes were implemented to provide sales management with accurate and current information. The Result In less than two years the average gross margin grew to 22.7%, while sales increased by more than 10% per year. Sales compensation paralleled sales performance, and the sales of new products climbed steadily toward the goal of 40% of gross sales. Inside sales not only supported the outside sales group, but the gross margin on the market segment served totally by inside sales made the group the second highest salesperson in the company. The major vendor, impressed with the company’s sales efforts added two additional states to its territory.   Case History#1 Case History#2 Case History#3 Case History#4 Case History#5

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