Do you really know your company’s profitability drivers?
More importantly, do you know what is creating the greatest drain on your company’s performance?
For years, large companies have been using Big Data to improve operations through the effective analytical identification
of major profit drivers. Unfortunately, this cost prohibitive approach has been primarily
limited to larger companies. Until now, that is.
Introducing Incometrics™
Sutton Advisory Group now applies the same principles of large company Profit Radar analysis to smaller companies.
Sutton has created Incometrics to help smaller companies identify the key drivers of their profitability.
The key behind Incometrics is a strong understanding of the true costs of getting a product from supplier
to the customer; which allows a company to identify the contribution of each product to the bottom line.
By understanding how operational performance translates to financial performance, Sutton can identify the true profitability
at multiple segmentation levels including:
SKU
/ Brand / Product
Line / Customer /
Distribution Channel / Geography
The Incometrics approach gets to the
true profitability and allows a company to focus its efforts on both developing more profitable products and reevaluating
less profitable strategies. This occurs by isolating the true expenses incurred, many of which are below
the line, such as:
True Landed Costs
/ Fulfilment Costs / Freight Out /
Commissions / Royalties / Credits
/ Direct Personnel Support
Incometrics uses both analytical and visual reporting
methods to help business owners truly understand how the contribution of each product and customer category affects company
performance. The graph below is an example of the visual output of a typical Incometrics analysis.
Designed for Smaller Companies
Incometrics was designed to fill an analytical void in lower middle market companies with revenues less than $75 million
and can be effective on companies with revenues as low as $10 million.
Ideal for Privately Owned companies
and Private Equity portfolio companies looking for immediate profit improvement.