By Martin Heubel, Amazon Strategy Consultant at Consulterce
Fractional ownership:
- Commercial teams know their retail budgets.
- Media teams know their advertising spent.
- Finance teams have insights into financial disputes.
The problem is each division only has insight into their budgets and spending.
So every team thinks their investments are reasonable.
The better way?
Appoint a central team that brings all the pieces together:
- Cost prices
- Trade terms
- Advertising costs
- Supply chain benefits
- Chargebacks
- Shortages
- Price variances
- …
Then, divide your total spend by your Net Receipts.
If your investments are >35%, your teams should:
- Renegotiate cost prices
- Reduce trade terms
- Improve supply chain efficiencies
- Request chargeback waivers
- Escalate financial disputes
Then: rinse and repeat.
For further information and support, contact Martin Heubel here
