SOAR to Strategic Excellence™

Sweet Spot Management™

Click a tool for a short description.

Cost to Serve Cost to serve – the variable manufacturing, selling, general and administrative, and working capital costs incurred in serving a particular customer. Such costs include variances, customer service, engineering, sales and marketing support, collection efforts, resources and assets tied up.
Costs that a company incurs to serve a customer	Most Costs to Serve are buried in expenses and often ignored.	Costs to Serve can have significant impact on profitability.	As many as 30 Costs to Serve could apply to each customer.
The Sweet Spot Sweet spot – slicing and dicing the business to focus on areas that offer higher profitability and growth potential.
Every business has winners and losers.	Some customers are more profitable than others.	Most businesses have more losers than they realize.	Not realizing where the Sweet Spot is can result in strategic mistakes.
Quadrant Analysis Quadrant analysis – a system to segment customers and products by evaluating the growth potential and net margins of each customer or product, placing them in one of 4 quadrants. The organization should then focus on Quadrants 1 and 2.
Assign customers and products a quadrant.		Goal: have as many customers and products as possible in Quadrants I and II.