Don’t Let Profitability Be Wicked

As business owners, you have many goals. But your number one goal should be to be profitable. Nearly 95% of all small businesses fail in their first five years because of the lack of profit – now that is a wicked statistic.

Turning a profit doesn’t have to be wicked. With proper planning, studying the past and the willingness to make changes when needed, your business can be profitable and successful. BioZyme President, Lisa Norton, shared several key strategies for profitability during a breakout session at the Dealer Retreat.

“Profitability should be the primary goal of all businesses,” Norton said. “Measuring current and past profitability and projecting future profitability is very important.”

Before reaching profitability, a business owner must first understand profitability. Profitability is more than the income or money that comes into your business. Cash can come into the business for many reasons like money due from past invoices, services, pre-payments or financing. But pure profit is a simple calculation:

Sales, Revenue OR Income – Expenses OR Costs = PROFIT.

The five “not-so-wicked” tips Norton offered include:

1. Figure out gross profit margin

Your gross profit margin can be deceiving. Remember it is the difference of all income for goods and services and the total cost of goods sold (C.O.G.S.). Be sure to include not only the cost of the products, but packaging, labor to make the products and other costs associated with the production of the product.

2. Analyze the gross profit margin on each and everything

By analyzing every profit margin for each product, you will have a deeper understanding of the products that you sell that generate the most profit, and the ones that generate little profit or even worse, lose you money. It is best for your business to stop selling anything that is losing your business money and focus your efforts in promoting and selling the products that create the highest margin.

3. Review all your prices

Do you charge all your customers the same amount? If so, why?

Some customers might not be as price sensitive as others – think government or other bigger businesses that can spread their expenses over more numbers. Don’t feel bad about increasing prices for some of those customers. Be sure to keep up with rising prices from your supplier and to raise prices as your competition does. It’s ok to increase your prices – your business survivability depends on it. Here is an example Norton shared with the group,

“It’s true that you might lose a customer if prices are raised, but if your margin is 50 percent, a 10 percent increase in prices means you can lose 17 percent of your customers and be no worse off,” she posted in one slide. Chances are a slight price increase won’t cause you to lose 17 percent of your customers if you remember to sell the value of your products and your customer service.

4. Use an inventory system

It is vital to know what you have on hand and to use some type of system to track your inventory. If you do have inventory in stock, make sure it is displayed, because if the customers can’t see it, they won’t buy it, and they likely will move on to your competitors for another product. When getting in new inventory, remember to rotate your stock and use the FIFO system – first in, first out – because no one wants to buy an old product.

5. Think about the best way to cut up money

Now, you might think tips about profitability shouldn’t mention “cutting” money, but Norton used a great visual with play money to demonstrate how to “cut” expenses from your profit equation. Each person in the room had one dollar to spend, and they had to decide how to spend their dollar on marketing, by cutting it into sections. Would you spend half your dollar on print advertising? Cut it in half, and you have half a dollar to spend on digital efforts, radio, creative design, research, boosting social media posts. How far will that half-dollar go? Because once you spent that first half, you can’t get it back, and if you are going to be profitable, you can’t ask for another dollar.

It shouldn’t surprise anyone that most people in the room, “cut” their money in different ways. That’s because everyone’s businesses are different, and everyone has different strategies to meet their goals.

Being profitable doesn’t have to be wicked at all. It can be a challenge that you face with courage and resolve. Follow these five simple steps and enjoy your journey to profitability.

Have Courage to Seize Opportunity

Every one of us has a bad day from time to time. The same is true for our livestock and companion animals. Part of being in the animal nutrition business is being able to offer potential solutions for when those bad days happen for our customers’ animals.

That’s why it’s important to keep some of the most unique products BioZyme® offers top-of-mind. The Vita Charge® line and Vitalize® Recovery Paste are some of the company’s fastest growing products and offer the highest profit margins to dealers.  And, they offer a rapid response to animals’ stress, making them a great product to showcase how effective the Amaferm® advantage is.

Due to the quick response rate of the Vita Charge line and the Vitalize Recovery Paste, they build customer confidence and open the door to more conversations about other products, that ultimately lead to bigger sales. As a dealer, you must have the courage to keep these products in stock and even offer a sample to a customer who has an animal in need. That tube of Recovery Paste or bottle of Liquid Boost® might be the best investment you make in marketing, if it leads to a loyal customer who starts buying and using more products on a consistent, year-round basis.

One example of a customer that started with one of these products is Brenton Feedyard at Grimes, Iowa. The feedyard was first exposed to the Amaferm advantage with Vita Charge® Stress Tubs in its receiving pens. The feedyard has been using the Stress Tubs for five years now, and typically puts two of the 200-pound tubs in the larger pens that hold up to 120 calves, and one 200-pound tub in the smaller receiving pens that hold 40 head.

“Some cattle blow through it a little faster, and we think it’s because they need it more. Some hardly go after it at all. It works great for us,” said Devon Keller, manager at Brenton Feedyard. “The Amaferm product has worked really well for us. We started with the tubs and felt like we saw a really big response from them. And now we actually feed the Digest More pellets – we double the rate for the first 30 days when receiving cattle.”

Although the calves only get Amaferm for the first 30 days at the feedyard, Keller said it has helped the calves get started on the right foot. They are overall healthier, and he says they treat on average, 50% fewer calves – a big labor savings for an outfit that feeds 3,000 head, farms 2,000 acres and only has three employees.

“When we get more Amaferm into the gut, we are getting more health into the gut. Some of the cattle are in rough condition when we receive them and just learning to eat. Most cattle that don’t go to the bunk will still go to the tub, and that’s what we like about the Stress Tubs,” Keller said.

Keller is just one example of a customer who learned about Amaferm and keeping the gut healthy, thanks to the Vita Charge Tubs. Now, he is a believer, who keeps ordering more product.

One of the greatest things about Vita Charge, is it can be used across species. The various applications for each production scenario, along with the rapid response make it a great “starter” product or door opener.

Be courageous. Offer a solution for a stressed animal and watch your customer list grow.

June/July 2018 – Letters from Lisa

Courage to Grow

The theme of our recent Dealer Retreat was the Wizard of Oz – Courage to Grow. I know what you are thinking, how can a 1939 movie classic be the business tale of 2018? The answer is found in the five points that are the key take-aways, if you choose to follow the yellow brick road all the way to the Emerald City.

Embrace and value the journey

In the Wizard of Oz, Dorothy and her friends embark on an incredible journey. As a business owner, you are also on an incredible journey. The challenges and victories on the journey are a part of your story, tell it every chance you get. The reason for this is that stories stick with people and have an impact on how they perceive the brand, your culture and whether they want to be a part of your journey.

Realize that things aren’t always what they seem

Dorothy and her friends are stunned when they discover that the Wizard was far from the powerful figure that they had expected him to be. Likewise, the stumbling blocks that your business faces may not be what you think they are. Solutions to business challenges seldom lie in looking at them through the same lens as you have always done. Innovation, creativity, and fundamental changes (yes you might need to change) may be necessary for your business to grow. Those things that seem to be great challenges may not be what they seem when approached in a new way with a fresh perspective.

Don’t be cowardly

Success in business comes from being courageous not cowardly like the lion. One must be courageous enough to search for new opportunities, even if it means a big departure from how you have done business in the past. In business, we are unfortunately, occasionally, subjected to naysayers – people who don’t get us, try to bring our spirit down, and bring us back to “reality.” It isn’t easy to find the courage to overcome all of this, but the alternative is to manage from fear. Fear destroys one’s opportunity for growth. Courage is one of the most important assets to have in a business.

Have a heart

The Tin Man lacked a heart, which is another way of saying that he lacked the energy, emotion and inspiration to lead his life in the way that he wanted. Business is all about energy and it flows down. As a leader, you must find a way to build a culture that engages people with energetic enthusiasm. Employees who feel heard, valued and respected work with much more enthusiasm and energy than those who don’t. They are also more likely to stick around because they love where they work.

Embrace the fact that brainpower matters

Take it from the Scarecrow – it takes work to become smarter. Developing the brains to drive change in your business means committing to continually upgrading your own skills. As a business leader, developing new perspectives, awareness, and resources through coaching, training, and leadership development can help.

So, think yellow brick road, then embrace the journey. Along the path, do not be afraid to challenge yourself to look at your business in new ways. Innovative growth and positive change only come to those who have the skills, energy, and courage to improve themselves and do things differently. As business owners we are constantly going through peaks and valleys – having our good days and bad ones. And with every one of these, there’s a new witch along the road. Decide if you will let the witch be wicked or be Glinda the witch of opportunity.

BioZyme Product Update

In the coming months, customers may notice larger-than-normal particles within our dry mineral bags. The enlarged particles are a result of a seasonal issue that we are facing with corn gluten. We are making efforts to find a long-term solution. Please be assured that the quality and nutritional value of the product has not changed despite the possible change in appearance. If you do experience concerns, please contact Dennis Delaney at 816-344-5748 or dpdelaney@biozymeinc.com.

Thank you for your business.
BioZyme Staff

Positioning VitaFerm HEAT

How exciting!! June ended as a record-setting month for VitaFerm HEAT sales and there isn’t any indication of it slowing down. Thank you to all of our dealers and ASMs who are making this happen. We also appreciate all of the customer success stories you are sharing.

We will continue to market the product heavily in the next couple of months as temperatures remain high and cattle need as much help as possible combating heat stress.

If you need any help marketing HEAT in your area, reach out to Kristi Stevens at kstevens@biozymeinc.com or 816-596-8795.

Visit our Dealer Facebook Group, to watch a video of Alan Lee, Director of National Sales, explaining the benefits of VitaFerm HEAT and how to position it to your customers.

https://www.facebook.com/jackie.lackey/videos/10113411223352774/?multi_permalinks=853912681470547&notif_id=1532097012950783&notif_t=group_activity

Vacay Giveaway

WIN AN ALL EXPENSES PAID TRIP!
By purchasing Amaferm®, Vita Charge® or Vitalize® Products
GOAL JULY 1 – DECEMBER 31, 2018

CONTEST DETAILS:
For every $8 purchase of Amaferm Products* (before ACH or freight), dealers earn a ticket for the prize drawing. For every $4.50 purchase of Single Dose Products**, dealers earn a ticket for the prize drawing. Eligible purchases are “new” purchases, meaning the Dealer SP, Dealer or Sub-Dealer has not purchased the specific product before AT ALL.

*AMAFERM PRODUCTS INCLUDE:

  • Amaferm® granules
  • Amaferm® liquid
  • Amaferm®pellets (Digest More®)
**SINGLE DOSE PRODUCTS INCLUDE:
  • Vita Charge® Drench
  • Vita Charge® Gel Caps
  • Vita Charge® HydraBoost™
  • Vita Charge® Liquid Boost®
  • Vita Charge® Neonatal
  • Vita Charge® Paste
  • Vitalize® Dog Recovery Paste
  • Vitalize® Equine Recovery Paste
All tickets earned are entered into the drawing. The first two pulled customers in the drawing, which will be held on December 31, 2018, may choose one of the following prizes:
  1. National Finals Rodeo Package:
    The winning dealer may choose up to two people to spend 4 days/3 nights in Las Vegas, NV attending the NFR. Travel expenses, lodging, meals and event tickets will be provided. The winning dealer’s ASM (plus one) will accompany the winner.
  2. Caribbean Cruise:
    The winning dealer may choose up to two people to spend 4 days/3 nights on a Royal Caribbean Cruise to the Bahamas. Travel expenses to/from Orlando, FL will also be provided. The winning dealer’s ASM (plus one) will accompany the winner.
  3. South Dakota Pheasant Hunt:
    The winning dealer may choose up to two people to spend 3 days/4 nights at Rooster Ridge in Chamberlain, SD to participate in a pheasant hunt. The package includes hunting licenses, meals, lodging, guides and processing. The winning dealer’s ASM (plus one) will accompany the winner.

July Changes for BioZyme Dealers

PRODUCT CHANGES

  • Vitalize® Equine Recovery Paste has changed to a 30 mL tube to streamline production.
  • *NEW* product: Vita Charge® HydraBoost™ Concentrate
    • An oral supplement for swine and poultry containing fermentation products, B-vitamins and antioxidants.
    • Sold by the case (4 1-gallon jugs per case).
      • Feed Rate: 1 gallon mixed with 4 gallons of water then 1:128 through a medicator.
  • Customs have been made available again and are at full Vitamin A & E levels

 

FORMULA CHANGES

  • Update to Vitamin A & E levels: June 1 we began manufacturing all stock products with full Vitamin E levels. Starting July 1, we will also bring Vitamin A levels back to full levels. Orders will be filled with products containing full Vitamin A & E levels once our existing inventory of lower levels is gone. Because of the registration process, vitamin levels cannot be changed in the registered IGR products.

 

PRODUCT PRICING

  • We wanted to bring our current Amaferm® pricing to your attention! The table below is found at the bottom of your monthly price list. It is the industry standard to price products such as Amaferm® on a per pound basis but we have included the per bag price to eliminate any confusion since we only sell these products in a 50 pound bag. If you have any questions about our additives or the pricing, please reach out to your ASM or call our office and ask to speak with Erin Creason.

 

OTHER CHANGES

  • At the request of many of our dealers and distributors, we have added barcodes to all of our small pack products. Sure Champ® buckets and other small pack products (ie. Vita Charge® Paste, Vitalize® Equine Recovery Paste, Vita Charge® Liquid Boost®) are shipping with UPC codes. The following document can be used to upload barcodes into your system. If you have questions on how to upload the barcodes, please contact our office and ask to speak with Cassie England. If you have other questions pertaining to barcodes, please contact our office and ask to speak with Customer Support.