Make It Almost Impossible for Your Competitors' Customers to Say No to Your Highest-GP$ Products — for Little Cost.
The simplest way to improve net profit for enterprise retailers in the home (furniture, floor coverings, bedding) and electrical
retailing markets is to leverage financial arbitrage.
The three-step rule to accelerate net profits.
Step 1: Focus on your highest GP$ products
small changes to AOV, Units sold, margin, and stock turns have big net profit impacts. If you are Harvey Norman: Sell more Big Screen TVs, not Toasters.
Step 2: Make It Almost Impossible for Your Competitors' Customers to Say No
without relying on more discounting, promotions or marketing. What value change creates the greatest likelihood of more of your competitors' customers buying from your business?
Step 3: Search Financial Arbitrage:
Your customers approve the value first. Economics prove the arbitrage. Net Profit Follows.
An illustrative example: The Good Guys could offer customers buying Big Screen TVs between $4,000 and $5,000 a $1,500 adult electric bike costing the retailer less than $100.
The simple test: If the same $5,000 TV is available from several retailers, but The Good Guys offered you an additional $1,500 of value, which retailer are you most likely to buy from?
The potential economics: Invest $100 to win a $5,000 TV sale.
E15X
Search. Customers Approve First. Economics Prove. Net Profit Follows.
Repeat every 90 days
EXTREME VALUE RETAILERS
BEST BUY — WORLD’S LARGEST CONSUMER ELECTRONICS RETAILER
Matched Amazon's prices. Extreme Value. Saved the business.
HARVEY NORMAN
Matches Prices. Extreme Value: 5 Years Interest-Free.
IKEA
Extreme Value: Inspiring Showrooms.
IKEA
Extreme Value: Customers Pay To Access It.
WHAT IS YOUR EXTREME VALUE?
What could make your highest-GP$ products almost impossible for your competitors' customers to say no to — for little cost.
E15X
Search. Customers Approve First. Economics Prove. Net Profit Follows.
Repeat every 90 days.
If you are the CEO of an enterprise retailer and want to talk, email [email protected]
EI5X - THE PROFIT SYSTEM.
Systematically find, prove and renew Extreme Value inside your highest-GP$ zone.
WHAT WOULD MAKE MORE OF YOUR COMPETITORS’ HIGHEST-GP$ CUSTOMERS CHOOSE YOUR BUSINESS NOW — WITHOUT DISCOUNTING?
EXTREME VALUE – If it doesn’t change which retailer customers choose, it isn’t Extreme Value.
FINANCIAL ARBITRAGE – Customer value significantly exceeds retailer cost.
CUSTOMERS APPROVE FIRST – Your ideal customers validate the Extreme Value before you commit capital.
SPEED – Extreme Value changes which retailer customers choose immediately.
PROFIT – Small movements in AOV, units, and gross margin inside your highest-GP$ zone materially lift net profit.
WHAT EXTREME VALUE LOOKS LIKE.
WHAT WOULD MAKE MORE OF YOUR COMPETITORS’ HIGHEST-GP$ CUSTOMERS CHOOSE YOUR BUSINESS NOW — WITHOUT DISCOUNTING?
BEST BUY — WORLD’S LARGEST CONSUMER ELECTRONICS RETAILER: Matched Amazon’s prices. Extreme Value. Saved the business.
HARVEY NORMAN: Matches Prices. Extreme Value: 5 Years Interest-Free.
COLES — LITTLE SHOP: Extreme Value: Collectables with every $30 spent. ~$200M Additional Sales.¹ Sales growth slowed after it ended.²
RETRAVISION — RESORT GETAWAYS: Extreme Value: $500 Resort Rewards for every $500 spent. Harvey Norman approached to take it over.³
WHAT IS YOUR EXTREME VALUE? What could make your highest-GP$ products almost impossible for your competitors’ customers to say no to — for little cost.
EI5X – KNOW IT. DEPLOY IT. RENEW IT.
Win more of your competitors’ highest-GP$ customers — without discounting.
Go live in 60 days. Refresh every 90 days.
If you are the CEO of an enterprise retailer and want to talk, email [email protected]