Yep you are entitled to say that. I am not saying chuck the baby out with the bath water, I never said that and it would be stupid, what I am saying is do your analysis. Sales people generally don't have the analytical know how for the in depth analysis I am referring to. I am talking not just margins, but inventory control, material usages, purchasing, warehousing, labour and plant efficiencies, wastage, production volumes etc. It's not simple. I have seen plenty of Companies up the duff with sales people as well. Some like some Accountants are clearly stupid.
I may appear to be simplifying it because I am discussing from an Accountants viewpoint, and generally people understand sales and margins. it's not simple it takes a lot of work, time and effort. If I went into detail nobody would read it. This is a generalisation. By the way I have employed these techniques in several companies and they haven't failed me yet. They have all returned from a position of losses to profitability within 3 years.
Have a nice day
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