CEO Tools Blog
JULY 12 Seasons: Economic Redux?
July's "12 Seasons" takes a look at where we are in the economic recovery, and what we might do in anticipation of the future! Redux, of course, means resurgent...we really can't tell if the economy is resurging much, mainly due to the spending-cut-tax-increase deliberations being conducted in the Capitol at present. Only time (probably a few weeks or months) will tell.
Right now, we have perhaps the most uncertain economy ever. Those of you who follow these things or those receiving my regular messages see why! Too many bits and pieces not nailed down and no Governmentally-guided economic direction.
Once again, caution is the right reaction. This means conserve cash, limit and leverage lending (try to increase your LoC headroom), and continue to grow sales, revenue, volume, orders, or whatever you call your top line. Clearly this means addressing and accelerating "What Causes Sales" and using a Cash Manager Tool and focusing on financing. Tools and ideas in these areas can be found at www.CEOTOOLS.com and click New Tools Catalog, then scan down through the tools. PDFs are free.
Among the trends now: Inflation in most commodities is upon us big-time, and is often obfuscated by suppliers hiding price increases in fees, surcharges, add-on billings, etc. All prices are either rising or starting to rise in response. So, start now to address your Pricing Strategy and manage inventories much tighter with great attention to the inflating items in inventory. Some pricing ideas (not all endorsed by me) are included below, and you can get help on inventory management from Henry Camp, CEO at Idea, LLC (supply chain experts) -- their website is www.IDEALLC.com and I do endorse them!
Hope this helps your business, especially in assessing upcoming changes in our economic recovery and our business responses!
Very best wishes, Kraig
SOME STRATEGIC PRICING APPROACHES:
After Charges (hotels)
Taxation (some hidden)
Flow Control (Delta)
Estimating Creep (Ptg)
Good. Better, Best
Trade for Payment
Mix (corn!)) To the extent you don't quite get some of these pricing directions, your direct reports and those around you can help with thoughts and ideas! Feel free to email Kraig at info@CEOTOOLS.com if you need help. Copyright © 2011 Corporate Partners Inc.