Know Your Checkbook Archives - Page 3 of 4 - BioZyme Online Dealer Center

Keep Records Now, Save on Fines Later

You invest a lot of time and energy helping your customers develop nutrition programs that help them put more dollars in their pockets. But, with the introduction of the Veterinary Feed Directive (VFD), now is the time to make sure your records are in order so if you are audited, your checkbook doesn’t take a hit with heavy fines in the future. Have you filed with the FDA? Do you have a person in your dealership to track the directives? And did you know software programs exist to help you track sales of medicated feeds?

All distributors of VFD feed must notify the FDA prior to selling any feed or supplements. Any changes of feed dealership name, ownership or address must be submitted to the FDA within 30 days of the change.

The only way you can sell VFD feed or supplements is with a complete written order from a veterinarian, similar to a doctor’s prescription. Once the order is filled, you must retain the directive and proof of sale/distribution. All records must be kept for two years, and be readily available to the FDA if requested for inspection/audit. The BioZyme^® staff has created a sample form to make sure that you have a complete directive, and everything is in order before you sell any medicated feed. Visit the Online Dealer Center at www.biozymedealer.com and click on “Regulatory Center” to download the sample forms.

A simple Google search will result in several software and online options for feed distributors to use to track records when selling VFD feed and supplements. You can also create your own document in Excel to track sales and record the directives. However, according to Kevin Glaubius, Director of Nutrition and Technical Sales for BioZyme, an actual paper trail needs to exist, and dealers will need to have hard copies of directives on file, not just electronic versions.

Remember, staying on top of your record keeping now, can save you time, headaches and dollars in fines in the future. A proactive approach to good record management will hopefully prevent a check-writing reaction in the future.

Customer Service Strengthens Relationships and Your Bottom Line

We don’t have to tell you the importance of customer service. You already know how vital it is to the success of your business. But did you know it is crucial to your bottom line as well? Businesses spend a lot of time and effort trying to cut expenses and increase profits. However, a December 2014 article on
Taskle.com says that a 2% increase in customer retention has the same effect as decreasing costs by 10%. Therefore, companies need to focus a lot more on improving customer satisfaction.

The best part of increasing your customer satisfaction levels is that customers keep coming back. These retained customers cost less than new customers. Why? Because you aren’t spending marketing dollars trying to get them in your stores – services you’re already providing are convincing them to come back.

Just what is that returning customer worth? According to an online article on Lireo.com:

Increasing customer retention by 5% can increase your profits up to 125%
Loyal customers are worth 10 times as much as their first purchase on average
Companies who make customer service a priority make 60% higher profits than their competitors

How to Improve Your Customers’ Experiences and Retain Them

Ask your customers for feedback. When you show that you care and that you’re willing to listen to your customers, they will appreciate it and want to give you their business. Really listen and try to implement their suggestions and
feedback, and then show what changes you have made based on their suggestions.
Offer a good mix of products. Make sure you have the products that your customers use the most on-hand for the time of year and the animals’ nutritional development.
Keep your store easy to navigate. Keep your aisles clear and set up a good flow. Keep like or complimentary products together so your customers don’t have to go from store corner to store corner to get the two products they came for.
Train your employees to handle complaints better. Negative interactions spread to twice as many people as positive interactions. If an employee handles a complaint well, the chance of the dissatisfied customer spreading his or her discontentment decreases.

Customer service – it is something we strive to perfect each day, but now that you know it can help your profits, be sure to give a little extra attention to the customers. Your customers will surely notice, and your bank account will too.

Sources:
http://www.taskle.com/how-does-customer-satisfaction-affect-sales/
https://www.lireo.com/how-customer-service-can-impact-your-business-infographic/#keytakeaways

Added Value Should Mean Added Profitablity

Having multiple product lines may allow a growing business to diversify risk and capitalize on its established reputation. Multiple product lines can also strengthen competition in its industry, while at the same time enhancing the company’s checkbook.

Certainly after reading that statement, everyone is interested in expanding their products or product line(s). However, while it may be beneficial to expand a product line or bring in a new product within a line, those benefits do not come without considerable work before the sales start rolling in. Please note, any one of these 17 steps could cause the ones before it to be reevaluated making the process at times overwhelming.

First, get an idea of what to expand.
Determine the specific needs of customers in that market segment.
Identify the product features that would be most attractive to them.
Assess the market size and the competition.
Create/formulate the product based on science and market research results.
Get team buy-in.
Figure out the best distribution channels to achieve the highest market penetration.
Determine the price to make sure it will be competitive and profitable. (note: many times this step forces you to go back to step 5 or before)
Test the product to determine its effectiveness.
Create a unique value proposition.
Decide how you’ll position the product in the market segment you’ve identified using that proposition.
Make sure that doesn’t conflict with any other products, product lines or brands in your portfolio.
Create the name and “look” to support the positioning.
Create the marketing materials.
Plan the initial launch.
Strategize the actual marketing plan to support it after its launch
Execute, execute, execute and PRAY. Pray the product is positioned and priced correctly, works correctly and sells in the time you predicted.

Of course you are not interested in doing this entire list, so how can making the decision of adding a new product or product line be made in a more simplistic approach? Consider the following:

1. Evaluate the product itself

Has the product been thoroughly tested?
Did the product deliver consistent results?

2. Identify and evaluate the target market

What are the ideal customer’s characteristics?
Is there a market for the product?
Is there enough of a market to support the product?
Does the market available to you have a place for the product?

3. Evaluate the competition

Who are the top market competitors?
How are their products the same or different?
What are their marketing techniques?

4. Consider the product from your customers’ viewpoint

What service or product do they choose currently?
What are the key differences that would compel customers to select your product over another company’s?

5. Evaluate launch readiness

If the launch is successful (and let’s face it – the reason you’re launching a new product is because you want it to be successful) can your company facilitate the increased demand?
Do you have resources for handling customer education, inquiries and needs?

In the end, if you do your homework and move forward with an analytical eye, your product or line extension will increase sales, help you reach new markets and build market share overall for your growing business. Go be a “rocket” star!

What’s It Worth? Let’s Do the Math

Typical Customer Rebuttal:
“OK, fine. I can afford a mineral program, but that
VitaFerm^® stuff is just too expensive”

While the study at Kansas State University estimates mineral costs at $36.50 per cow, per year, it is true that VitaFerm will be approximately $56.74 if using our top-of-the-line VitaFerm lines, Concept•Aid^® and Heat^™. That’s $20 more per cow. Before you walk away, see the breakdown below so you can fully understand how you and/or your customers can’t afford to NOT feed VitaFerm mineral.

What are More Weaned Pounds Worth?
According to Reinaldo Cooke, PhD, Oregon State University, supplementing cows with organic trace minerals led to weaning weights of 519 lbs. vs 466 lbs. for the control (no supplementation but were not mineral deficient), giving the cows with organic trace mineral supplementation a 53 lb. or $74/hd advantage, or a 28 lb. or $39/hd advantage over the inorganics. VitaFerm uses Optimins^® for organic trace minerals in all formulas.

What are Even More Weaned Pounds Worth?

What’s One More Calf Worth?
A 2.5% increase in the calf crop (1 calf per 40 cows), at a 550 lb. weaning weight, would increase the average weight of the calves by 13.75 lbs., and at $1.40/lb., would increase the average revenue per cow by $19.00.

What is Keeping them Cool Worth?

0.4 increase in average days open when beef cows experience heat stress (1.6 to 0 days across the USA)
0.4 more days at 2.5 lbs. of gain per day a calf is on the ground, equates to $1 per cow, per year
Donor cows flush less when heat stressed. The typical flush is 8 eggs per cow. A trial on VitaFerm HEAT with 8 donor cows led to 105 eggs instead of the typical 64 in the year before.

What is Keeping them Grazing Worth?
The average producer feeding harvested hay has a per cow, per day cost between $1.25 to $2.00. More days on grass means less days of feeding harvested hay. This is difficult to calculate, so we will just keep this in mind while determining value.

What else can they say:
“OK, OK, OK.”

Optimins^® Value: $39 more revenue for a heavier calf at weaning
Amaferm^® Value:
– $49 more revenue for a heavier calf at weaning
– $19 more revenue for 1 more calf across the herd
– $1 more revenue for less average open days
A 5 to 1 return before we even talk about forage savings!

The additional investment of $20 per cow translates to $108 more revenue per cow.

Click Here to Download the Understanding the Value brochure that includes all of this information in a format you can share with your customers.

What Does Mineral Supplementation Really Cost?

Typical Customer Objection:
“I understand the nutrition is great… I just don’t have the revenue to cover such a large cost in my operation.”

When cattle producers are trying to cut costs, mineral programs
seem to be the first to go… But should they be? According to Kansas
State University, the average cost per cow, per year is as follows:

According to this cost breakdown:

Year Round Mineral Cost = $36.50 per cow
Mineral accounts for only 3.9% of total cost
Harvested forage is 12.8% of total cost

According to a recent study by Reinaldo Cooke, PhD., Oregon State University, supplementing cows with inorganic trace minerals led to weaning weights of 25 lbs. more than the control (no supplementation but not mineral deficient). Using $1.40/lb., this equates to a $35 per head advantage.

What does this mean?

A mineral program will end up costing you $1.50 per year, per cow (=$36.50-$35)
That is 0.2% of the total cost per cow, per year

Now that you know what it really costs, do the math to find out what it’s really worth – click here.

Added Value Should Mean Added Profitablity

Adding value is the process of changing or transforming a product from its original state to a more valuable state; from one set of characteristics to other characteristics that are more preferred in the marketplace.

Today, the “produce-then-sell” mentality of the commodity business is being replaced by the strategy of first determining what attributes consumers want in their products and then creating or manufacturing products with those qualities. Market forces have led to greater opportunities for product differentiation and added value because of:

Increased consumer demand regarding health, nutrition and convenience;
Efforts to improve productivity; and
Technological advances that enable production of what consumers desire.

Adding value to products can be accomplished in a number of ways, but generally falls into two categories: innovation and coordination. One or both of these must do more than add value. To be sustainable, they must also increase profitability.

Innovation

Innovation focuses on improving existing processes, procedures, products and services or creating new ones.

Impact on profitability – sales revenue is a function of volume and price. Value-added products allow more emphasis to be placed on the price part of the equation, initially, but ultimately they will also impact the volume, thereby increasing sales revenue. Your company’s strategy should be to find sources of revenue where you can have both high volumes and good prices.

The relatively new HEAT product is a great example of value-added innovation. By adding Xtract 7065, garlic and Amaferm^® we have a summer mineral that adds value by:

Lowering heat stress so animals eat instead of standing in the shade or the ponds
Repelling insects
Increasing digestibility so food consumed is utilized more efficiently offsetting the negative impacts of fescue in certain areas of the country

The product is priced such that we have the profitability part of the
equation covered. In its first year, 26 tons of product was sold.
However, the added value that this product provides has impacted the volume part of the revenue equation as well; sales grew to 455 tons in 2015, and to 1,202 tons as of June 30, 2016. This value-added product has accomplished the strategy of finding a source of revenue where we can have both high volumes and good pricing for maximized sales revenue.

Coordination

Coordination focuses on arrangements among those that produce and market products. Horizontal coordination involves pooling or consolidation among individuals or companies from the same level of the food chain. An example would be hog producers combining their market hogs to make a truckload. A coordinated effort is needed to impact cost reduction.

Impact on profitability – before examining value-added processing and marketing, cost minimization must be achieved. Only efficient businesses will be able to survive and compete. Adding value cannot take the place of reaching the efficiencies attainable through technology and economies of scale.

Our mega dealers are a good example of coordination. They buy large orders and then disseminate the product out in smaller amounts at a significantly lower cost and more efficiency than an LTL company.

No matter innovation or coordination, in the end, value-added is a fairly simple concept. Create relationships with customers to encourage repeat business, improve tactics and your profits will go up.

Identify and Monitor Important Metrics

Dealers must stay on their toes to monitor the ever-changing inventory trends, seasons and customer demands. One way is to proactively optimize your inventory and make sure that you’re stocking the right products, at the right time. To accomplish this, identify and track certain metrics that give you a better understanding of how inventory is moving through the dealership:

A. Inventory Turnover [cost of goods sold / average inventory]

Also known as stock turn, this metric refers to the number of times that product has sold out for a particular time period.

Example: To keep numbers simple, a dealer’s average inventory costs $10,000 and it sold $50,000 worth of goods within a 12-month period. In this case, the dealer’s stock turnover rate is 5.0, which means that it sold out its inventory five times that year.

Monitoring stock turn is a must, since it lets you see how fast merchandise is moving in your business. Generally speaking, a high stock turn rate is good, because it means you’re not tying up too much capital in your inventory.

You can also compute for stock turn at a per product basis so you can figure out how fast different products are selling out. If product A has a turnover rate of 1.0, and product B’s turnover rate is 7.0, then you know that B is selling much more quickly. This serves as an indicator that you’ll need to order more of item B, and less of item A.

B. Gross Margin ROI [gross margin / average inventory cost]

The GMROI measures your return on the amount you invested in stock. It basically answers questions like, “How many gross margin dollars did I make from my inventory investment?” or “For every dollar invested in inventory, how many dollars did I get back?”

Example: A dealer’s average inventory cost is $25,000 and has gross margin of $60,000. The GMROI would be 2.4. In other words, the retailer earns $2.40 for each dollar spent on inventory.

When computed at a store-wide level, GMROI can give you insight on the overall health of your dealership. This metric can also be calculated at a per-product basis so you can determine whether it’s worthwhile to carry certain products.

Say you recently started selling a product in your store. You run the GMROI on it (by taking its gross profit then dividing it by your average inventory at cost) and find that the result isn’t as great as you’d like. You can then use this data to decide on what to do with the product (i.e. take it off the floor, put it on sale, etc.).

C. Sell-Through Percentage [units sold / (units on hand + units sold) x 100]

The sell-through percentage pertains to the number of units sold versus the number of units you had at the beginning. It’s a metric used to assess product performance. It illustrates how fast merchandise is moving and how many more units you have to sell to unload your inventory.

Example: A dealer received 200 units of Vita Charge^® Liquid Boost^®, and proceeds to sell 145 after a month. That item’s sell-through percentage is 73 percent. Sell-through gives you an idea of which products are selling and will allow you to make better decisions when it comes to what to stock up on, what to put on sale, etc.

Tip: Check to see if your point-of-sale or inventory system provides these metrics for you. Before pulling out your calculator to compute for these metrics, see if you can find the insights you need using your inventory or POS software. Some systems can generate reports on popular products as well as your margins, so you won’t have to do math yourself.

Alternatively, you can download Retail Calculators, an app that has several preset calculators in one program, allowing you to compute for common business metrics without having to memorize any of the formulas.

Measuring Return from Sponsorship Opportunities

BioZyme^® began its youth investment strategy in 2007. That year, we sponsored two Junior National beef shows – Angus and Hereford. Today, we sponsor 13 – World Pork Expo, Hereford, Angus, Simmental, Shorthorn, Gelbvieh, Red Angus, Maine and Chi, Saler, Charolais, Limousin, Mini Hereford, and Brahman. The reason we choose to make this investment is simple. Youth are the future. The next question that always gets asked is how does this investment provide return.

In the ag world, it is common to get calls from the locals – FFA, 4-H, local cattleman’s association – asking for sponsorships or for you to be a volunteer. Association trade shows and exhibitions also turn to sponsors to get their program off the ground. In most cases, these organizations will ask for a modest amount ranging from a few hundred to a few thousand dollars in exchange for some type of advertising, like logos or banners.

Deciding what to sponsor can be tricky, as certain opportunities may be a complete waste of money, while others may pay off in gold (i.e. marketing your company to potential customers). In addition, sponsoring an event for someone who already sings praises about your dealership enhances that relationship, and because you are helping him or her meet a goal, they sing even louder.

Obviously making sure these choices are a good investment of your time and money is important to your checkbook. Whether you’re being recruited to provide time or money, ask yourself the following questions before deciding to invest:

What is the target market for this event?
What kind of exposure do I get for my investment?
Can I get this kind of exposure without this investment?
Do I get direct access to the audience?
Does it make sense for me to be there?
Which business goal does it help me complete?
Are other sponsors my competitors?
How does this enhance my credibility with who/what I’m helping?
Why wouldn’t I do it?

After you decide to invest, don’t forget to assess the results. Some metrics you should consider analyzing include: sales activity, lead generation, lower customer acquisition cost and/or attitudes toward your brand or business. BioZyme looks to Sure Champ^® sales as our metric to measure success. The below graph shows the investment is paying off in more than just goodwill.

At the end of the day, the key to managing sponsorships is ensuring you get the “best bang for your buck”, while minimizing risk to your brand or business. I am sure the sponsors of the 2012 ING NYC Marathon did their due diligence. Unfortunately, they could have never predicted an event the magnitude of Hurricane Sandy. City officials, sponsors, as well as race organizers were divided on whether or not to proceed. It was a difficult decision to cancel, but the right decision. So, whether you are a title sponsor for a major event, like ING, or a smaller sponsor at a local event, setting your objectives, ensuring you have the right sponsorship partner, leveraging the association beyond just a sign, will yield better business in the long run.

4 Myths to Debunk about Pricing

Pricing tends to be looked at as this ominous figure in business that’s so difficult that most are left paralyzed. As one of the least studied branches of marketing, pricing has become a black box for many dealers, who simply adopt existing prejudices and misinformation.

Put simply: if pricing is a black box, you’re losing money. A lot of it.

Therefore, let’s dispel some of the most common myths so you can be catapulted into action and start capturing all of that lost cash you’re leaving on the table. Increased revenue makes every business owner happy.

Myth #1:
We need to accept market or competitor pricing

Basic microeconomics teaches that in perfect competition, individual companies cannot affect market prices. In other words, businesses must accept the equilibrium price, where the demand curve crosses the supply curve. While this is a convenient way to calculate price, this theory doesn’t correctly reflect how the real market works. Prices in any market span across a range, rather than fixing on only one point. Product and service differentiation through brand, quality, etc. can all affect where your business lies on this range.

TRUTH: No matter the density of your industry, product and brand differentiation can take you well above the market standard.

Myth #2:
The only way to increase volume of sales is by decreasing price

It may sound too good to be true, but it is indeed possible to raise prices and increase volume at the same time. As Lisa states in her letter this month, price isn’t the only factor that attracts customers. Focusing on giving customers a reason to pay a higher price for your product or service is crucial, whether that be greater quality or better service. A powerful tool is market segmentation. Most products have a target audience, whether it’s the progressive cattleman, the bargain hunter, the show segment or the hobby horseman. Creating different classes for your product depending on quality or services can expand the number of customers you cater to, thus increasing buyers. Additionally, sometimes lowering your price can actually deter people from buying your product. Think about it. If I came up to you and said I’d sell you an Apple MacBook Air for $100, you wouldn’t buy it, because you’d definitely question the quality.

TRUTH: Volume is created by customer segmentation, charging different sets of customers different prices, and thus increasing volume and revenue.

Myth #3:
We need to charge lower than everyone else

This is quite possibly the biggest misconception. A race to the bottom is one of the worst ways to compete, because you end up underpricing and losing out on your customer base. Your customers begin to question the quality of your product, but needs to buy the product. So they continue to shop around, and you lose customers. Lower prices equal lower revenue rates, which means the number of sales must increase to cover the loss. Obvious, yes, but it needed to be stated. Additionally, a lower price tag doesn’t mean customers will automatically flock toward your product. For example, if BMW suddenly sold its cars for $35,000 instead of whatever ridiculous dollar amount they’re priced at now, would that necessarily increase its revenues? Possibly in the short term, but in the long term they would begin to compete with cars made by Honda and Toyota who already have that market cornered. BMW would also lose out on the consumers that put luxury value in the premium pricing of their cars.

TRUTH: Underpricing is rarely the solution to any pricing woes. You end up dropping into a different segment of customers and lose out on cash from your current customers.

Myth #4:
Pricing isn’t important

Pricing is the most important aspect of your business. Period.
A 1 percent improvement in pricing results in an average increase of 11.1 percent in operating profit. No other business lever has that impact – not cost optimization, volume increases, or anything.

TRUTH: Pricing is, bar none, the lever in your business that has the highest impact on the most important cell on your end-of-month spreadsheet – your revenue. You need to take it seriously.

Source: http://www.priceintelligently.com

Financial and Productivity Apps to Keep You in Check

Your iPhone can be a powerful tool for business – or a complete distraction. The key to any software program or app is finding the right match for your specific needs or deficiencies and then committing to using the tool so you can take advantage of the benefits. The following are a few apps that may be able to enhance record keeping systems, automatically sync income or expense data with your financial software, increase communication and transparency with your team and boost productivity.

Xpense Tracker
An all-inclusive expense tracking and reporting application for dealers wishing to track their expenses and mileage. It’s power does not end at the iPhone but extends to the desktop by allowing emailing or exporting of the expense files and accompanying photo receipts directly to the desktop.

Quickly snap shots of receipts for easy scans and financial tracking.
Track your mileage in real time by using your device’s integrated GPS.
Export your records in .PDF and .CSV file formats.

Hours Tracker
Need a way to track your time or an effective tool for employees to use so they can send you time reports? Clock in and out as you work. Or, add entries yourself in just a few quick taps. Time entries are automatically created when you clock out.

Easily review your past entries, grouped by day, week, month or pay period. You can easily export your data by job, date or selection. Choose to export as a text summary or in spreadsheet-ready CSV format.

SLACK
All your team communication in one place. Slack is a new way to get more done, spend less time in meetings and reduce email.

Real-time messaging and file sharing for one-to-one and group conversations.
Powerful search and archiving, so you can find information easily.
Instantly syncs across all devices.
Configurable notifications for desktop, mobile, and email.
Proven to make your working life simpler, more pleasant, and more productive.

Quickbooks Payment Pro
GET PAID QUICKLY … ANYWHERE, ANYTIME. Plug the card reader into your iPhone or iPad and swipe credit cards quickly and securely. Or, if you don’t have a card reader, you can always scan a card with your camera or key in the card details directly.

Your customer signs right on your device to authorize the payment. Then, you can email or text a receipt to your customer. Accepting a payment takes just a few taps from start to finish.

Wunderlist
Wunderlist allows dealers to access their to-do lists from almost anywhere. Star important tasks, create multiple lists, sort by due date and priority and add tasks via e-mail.

Since multiple parties can edit lists, the app doubles up as a collaboration tool that works across desktop and mobile.

Freedom – Reduce Distractions
With so many distractions and possibilities in your digital life, it’s easy to get scattered. Freedom blocks digital distractions so you can be more productive. Start a Freedom session, and you’re blocked from all distractions on your phone or tablet. Freedom gives you peace and quiet, so you can accomplish more.
Rescue Time: Android alternative