By Ing. Sandra Felsenstein

Many times, Although there is a good volume of sales, the reflected results are not satisfactory. It is important to stop then and analyze some possible reasons that may generate, o al menos contribuir a esta situación. Si bien se puede estar generando un alto nivel de facturación, Both the high direct costs as well as the general expenses directly affect the profitability of the business.. In these cases, consider:

  • Varied range of articles or business units that generate different results in the company. In some cases, several product lines or differentiated business units are managed., which in turn have different scales of profitability and generate different results in the company. It is extremely important to understand and consider this point when designing a business strategy.. Objectives should be set in relation to the different performance gradations possible, what leverages and what not the business, and more, having as a premise that "selling more is not always selling better".
  • Financial difficulties. Many times good sales are generated and with good results, but with poor cash flows. This situation can arise, for example, for very long terms in collections and too short terms in payments. This translates into little “cash at the end of the month”. The months with the highest billing also imply higher variable costs., generating positive results from the commercial point of view, but with possible negative cash results. This type of lag can be increased in inflationary periods.
  • High inventories. There must be a "logical" relationship between the immobilized stock and its rotation, to avoid unnecessary losses. For example, despite a good sale, if the stock is high, the asset is not liquid and consequently the results are not appreciated. In some industries the damage may be even greater, if, for example, merchandise remains in stock for too long and then becomes obsolete or goes out of style and consequently lowers its commercial value. Special attention and control deserve consumer products with an expiration date, to avoid having to eliminate them and generate the total loss.

It is essential to consider all these points when designing a commercial strategy that is as suitable as possible., setting targets based on the most profitable products or item lines. Once clear goals are set, it is extremely important to implement good commercial dashboards (TACOs) and use all the necessary tools to detect deviations and act quickly accordingly.

Later, and based on a good analysis of the information available, Commercial actions can be implemented that allow the business to be further leveraged.