NEWS BRIEFS
3 SEFA Panelists Offer Tips on Increasing Profits
After profit consultant Dr. Albert Bates told the Southeastern Fastener Association that holding down payroll costs may be the first and best step to higher profits, three industry panelists gave tips based on their experience.
• Jake Davis, president of Kansas City-based BTM Manufacturing said an early profit question is: “How many pounds of wire do we have?” That leads to working with customers to reduce inventory. “Communication with customers is key,” Davis declared.
“At some point, you may be best off to ‘fire’ a customer,” Davis said. Web: btm-mfg.com
• Craig Penland of South Carolina-based metric fastener distributor Eurolink FSS, tracks accounts receivable. That may mean “holding firm” even with customers you like. “It can be scary when it is major customer,” Penland acknowledged.
Sit down with top 10 suppliers to cut lead times, Penland advised. Web: eurolinkfss.com
• “Hire slowly, fire quickly,” advised Doug Ruggles of Martin Fastening of Jackson, TN. Before adding another employee, calculate whether overtime is cheaper, he said.
Don’t just look at total sales, rather measure sales by each person, Ruggles said. Web: MartinSupply.com
For more tips from Davis, Penland and Ruggles, FIN Subscribers CLICK HERE.
For Bates’ presentation at SEFA, FIN Subscribers can CLICK HERE.
Share: