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Recurring revenues: Oil or glue?

Berkonomics

Management undertakes a simple exercise of calculating the increased profitability of shutting down all R&D, sales and subordinate operations, and universally notes with shock the high net profit that results – from shutting down all operations except customer service to recurring customers (as in software support operations.).

Sales 296
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How much is that one additional unit worth?

Berkonomics

Here’s the importance of that event and how it affects every productive move you make after that moment. Every dollar of gross profit falls to the bottom line, increasing net profit faster with each transaction. That’s impressive sales leverage. Just to be fair, a 5% cut in costs would also double net profit.

.Net 156
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Looking to be acquired? Think the 10/40 or 20/20 rules.

Berkonomics

If you are experiencing 20% annual growth and 20% net profit before depreciation and tax, or any combination that adds to 40% (such as 10% profit and 30% growth), you are a prime target. Email readers, continue here…] Here are some of the checklist items your acquirer will consider. The second rule: The 20/20 rule.

.Net 156
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A heartbreaking story about time and money.

Berkonomics

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

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Why You Should Think Twice Before You Send That Intro Email

Both Sides of the Table

Your entrée to sales meetings. And in most cases I would heed Fred Wilson’s advice about the “double opt-in” email for intros – where you ask for permission before green-lighting an unsolicited introductions. There are also many times where that meeting isn’t really focused or productive.

Email 359
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A Startup’s Net Profit Score Is More Important Than Its Net Promoter Score

InfoChachkie

As crazy as this scenario sounds, it is very similar to the “scoring process” companies engage in when they track Net Promoter Scores. Net Promoter Scores (NPS) are the darling of many Big Dumb Company (BDC) product marketing and customer support executives. Turning Net Promoters Into Net Profits. Shots On Goal.

.Net 182
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How much do you spend on R&D? Is it enough?

Berkonomics

One of the most obvious reasons mature businesses die away – when we look in the rear view mirror – is that they did not spend to renew their product or service when newer entrants into the business arrived with better products and services built upon newer technology. Should be an easy fix for companies making annual net profit.

.Net 120