By Martin Heubel, Commercial Advisor to 1P Amazon Vendors 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
