NamCalc – Numbers-based
Persuasion & Negotiation

How to quantify and use cost, value and risk in Major Customer Management

Next Session: 1st June 2010

Fees: £395 (+VAT) per delegate
(with a 10% discount for current named Namnews subscribers)

Venue: Copthorne Hotel, Slough

  Purpose & Action Output:

As a result of participating in the workshop, the delegates will have developed:

• A practical negotiation toolkit to help them optimise scarce resources via negotiation

• Hands-on techniques to calculate cost and demonstrate value, to negotiate willing compliance by the customer

• A uniform company approach to numbers-based customer management by developing skills that can be transferred to delegates day-to-day roles

  Workshop Content: (Subject to meetings with a selection of delegates and discussion with management)

Recession: The New Trade and Customer Context, adding value via the supplier

• Key Retail Customers’ relative financial performance, drivers & pressures

• Calculating the key ratios and new KPIs and priorities

• Translating the KPIs into the buyer’s needs from the supplier

• How suppliers contribute to retailer profitability

• Incremental sales required by the retailer to generate the equivalent of supplier's trade investment

The Supplier's Trade Offering

• What the supplier's ‘open domain’ figures reveal to the trade, where available (in this case UK Companies House, & Global Annual Report)

• The supplier's needs in terms of sales and profit growth

• Identification and prioritisation of each element of the supplier's trade ‘package’

• How to quantify the cost of each element of the package i.e. trade credit, terms, discounts, trade funding, etc.

• Calculating the incremental sales required to cover the costs

• What the supplier needs from the buyer

Calculating and optimising the supplier's trade support

• Different promotional mechanics (multibuy, reduced price etc.)

• Supplier's impact on the customer’s performance (GMROII, GMROS, GMROL, Sales & Profit per sq. ft.)

• Use of the numbers in adding value

Concessions management in negotiation

• Key concessions from the buyer: how to quantify and devalue

• Key concessions from the supplier: how to quantify and add value

• Incremental sales required by the customer to generate the supplier's trade investment

• How to trade and match concessions, via the numbers

Action output - pulling it all together

• Each of the team will receive a personal copy of our 34-tool NamCalc, learning how to use and apply each calculation to their customer issues, thus ensuring constant application of workshop techniques in the day-job
   

A ‘hands-on’ day, working out the cost and risk to you, and the value to the buyer, of the following types of demand: 

“I want 12 days extra credit, now”

“I need you to hold 2 weeks extra stocks, to improve availability”

“Our sales of your brand are growing at 13%, I want you to finance our extra stockholding”

 “I want to cut shelf prices by 5%, but keep the same cash margin, at your expense”

“We want a BOGOF on your main brand, minimum redemption level of 45%, funded entirely by you”

“We are doubling our use of multibuys, and are prepared to fund 30%”

“If you want 8 days earlier payment, we need 2.5% settlement, take it or leave it”

“The retail margin is unacceptable, nothing to do with stockturn, just give me more”

“I want to charge £60k for a week in that space, take it or leave it”

“I want you to delay the 8% price increase for 30 days, to give us an advantage over other retailers”

“That display material is over the top, you should be paying me 5% handling fee”

And many, many more day-job calculations, to help you sell and negotiate cost and value with your buyer.
 

  Calculations covered on the workshop include:

• Cost of Trade Credit

• Cost of Stockholding

• Stock-to-Sales

• Margin Calculator

• Costing for BOGOF

• Costing for Multi-Buy

• Costing for Multi-Purchase

• Settlement Discounts

• GMROII (Gross Margin Return On Inventory Investment)

• GMROS (Gross Margin Return On Space)

• GMROL (Gross Margin Return On Labour)

• Supplier Margin Maintenance Calculator

• Customer Goes Bust

• Delay of a Price Increase/Warning of a Price Increase

• Negotiating Cost (a) - Display Material

• Negotiating Cost (b) - Category Management Guidance

• Negotiating Cost (c) - Allowances

• CAGR (Compound Annual Growth Rate)

• Passing on a Cost Increase

• Sales/Profit per Sq.ft./m Calculator

• Buying Mix Analysis (BMA)

• Financial Ratio Calculations

• VAT Changes - Margin Impact

FREE 6-month subscription to Namnews/Kamcity.com (worth £60)
To tune you into the key trade issues and maximise output, you will receive daily trade updates via email
and full access to Kamcity.com, from the time of booking.