The MHEDA Journal - First Quarter, 2018 - 81

PROFIT PL ANNING

out. This is a very typical planning
horizon for many firms. The final column shows results in year fourteen.
This simply rounds the 14.0 figure from
the Rule of 72 calculation for the typical firm.
A comparison of the current numbers and the figures for year fourteen
presents some startling results. In the
current year the high-profit firm has
a profit that is 82.9% higher than
the typical firm ($1,792,000 versus
$980,000). However, by year fourteen
the difference has grown to 219.4%.
The high-profit firm is systematically
moving ahead of the typical one.

From a sales perspective, the typical firm has more or less doubled its
sales volume from $40,000,000 to
$80,880,970. At the same time the highprofit firm has the potential to grow to
$141,272,395 in sales, an increase of
253.2%. Not only is the typical firm
behind in terms of current profit, it is
falling further behind in future sales
potential and the additional profit those
sales can generate.
There is no certainty that the higher
sales number can be reached. The
exhibit simply indicates what could
be attained if profit levels remained
the same and all additional profits

were reinvested back into the business over time.
Clearly, the importance of being a
high-profit firm is significant today. Its
importance grows exponentially in the
future. Typical firms need to plan to
catch up to their high-profit competitors.

Moving to a Higher Return
In moving to a higher-profit level,
there are three major concerns. All
need to be address directly.
Benchmarking - Without comparison numbers from a financial benchmarking analysis, it is impossible for
a firm's management to know if it is
The MHEDA Journal | First Quar ter 2 018

81



Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2018

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
Ask A MHEDA-NET Group
MHEDA Calendar
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
DISTRIBUTOR FORECAST
SUPPLIER FORECAST
MHI FORECAST
ITA FORECAST
CEMA FORECAST
ITR ECONOMICS FORECAST
2018 MHEDA CONVENTION SCHEDULE
THE RULE OF 72
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index of Advertisers by Alphabetical
The Last Word
The MHEDA Journal - First Quarter, 2018 - Intro
The MHEDA Journal - First Quarter, 2018 - cover1
The MHEDA Journal - First Quarter, 2018 - cover2
The MHEDA Journal - First Quarter, 2018 - 3
The MHEDA Journal - First Quarter, 2018 - 4
The MHEDA Journal - First Quarter, 2018 - 5
The MHEDA Journal - First Quarter, 2018 - 6
The MHEDA Journal - First Quarter, 2018 - 7
The MHEDA Journal - First Quarter, 2018 - 8
The MHEDA Journal - First Quarter, 2018 - 9
The MHEDA Journal - First Quarter, 2018 - 10
The MHEDA Journal - First Quarter, 2018 - Chairman’s Perspective
The MHEDA Journal - First Quarter, 2018 - 12
The MHEDA Journal - First Quarter, 2018 - From the Desk of Liz Richards
The MHEDA Journal - First Quarter, 2018 - 14
The MHEDA Journal - First Quarter, 2018 - Editor’s Note
The MHEDA Journal - First Quarter, 2018 - 16
The MHEDA Journal - First Quarter, 2018 - MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
The MHEDA Journal - First Quarter, 2018 - 18
The MHEDA Journal - First Quarter, 2018 - 19
The MHEDA Journal - First Quarter, 2018 - 20
The MHEDA Journal - First Quarter, 2018 - 21
The MHEDA Journal - First Quarter, 2018 - 22
The MHEDA Journal - First Quarter, 2018 - 23
The MHEDA Journal - First Quarter, 2018 - 24
The MHEDA Journal - First Quarter, 2018 - 25
The MHEDA Journal - First Quarter, 2018 - MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
The MHEDA Journal - First Quarter, 2018 - 27
The MHEDA Journal - First Quarter, 2018 - 28
The MHEDA Journal - First Quarter, 2018 - Ask A MHEDA-NET Group
The MHEDA Journal - First Quarter, 2018 - 30
The MHEDA Journal - First Quarter, 2018 - 31
The MHEDA Journal - First Quarter, 2018 - 32
The MHEDA Journal - First Quarter, 2018 - 33
The MHEDA Journal - First Quarter, 2018 - MHEDA Calendar
The MHEDA Journal - First Quarter, 2018 - 35
The MHEDA Journal - First Quarter, 2018 - MHEDA MEMBER PROFILE
The MHEDA Journal - First Quarter, 2018 - 37
The MHEDA Journal - First Quarter, 2018 - 38
The MHEDA Journal - First Quarter, 2018 - 39
The MHEDA Journal - First Quarter, 2018 - 40
The MHEDA Journal - First Quarter, 2018 - @WORK
The MHEDA Journal - First Quarter, 2018 - 42
The MHEDA Journal - First Quarter, 2018 - WOMEN IN INDUSTRY
The MHEDA Journal - First Quarter, 2018 - DISTRIBUTOR FORECAST
The MHEDA Journal - First Quarter, 2018 - 45
The MHEDA Journal - First Quarter, 2018 - 46
The MHEDA Journal - First Quarter, 2018 - 47
The MHEDA Journal - First Quarter, 2018 - 48
The MHEDA Journal - First Quarter, 2018 - 49
The MHEDA Journal - First Quarter, 2018 - 50
The MHEDA Journal - First Quarter, 2018 - 51
The MHEDA Journal - First Quarter, 2018 - 52
The MHEDA Journal - First Quarter, 2018 - 53
The MHEDA Journal - First Quarter, 2018 - SUPPLIER FORECAST
The MHEDA Journal - First Quarter, 2018 - 55
The MHEDA Journal - First Quarter, 2018 - 56
The MHEDA Journal - First Quarter, 2018 - 57
The MHEDA Journal - First Quarter, 2018 - 58
The MHEDA Journal - First Quarter, 2018 - 59
The MHEDA Journal - First Quarter, 2018 - 60
The MHEDA Journal - First Quarter, 2018 - 61
The MHEDA Journal - First Quarter, 2018 - 62
The MHEDA Journal - First Quarter, 2018 - 63
The MHEDA Journal - First Quarter, 2018 - 64
The MHEDA Journal - First Quarter, 2018 - MHI FORECAST
The MHEDA Journal - First Quarter, 2018 - 66
The MHEDA Journal - First Quarter, 2018 - 67
The MHEDA Journal - First Quarter, 2018 - ITA FORECAST
The MHEDA Journal - First Quarter, 2018 - 69
The MHEDA Journal - First Quarter, 2018 - 70
The MHEDA Journal - First Quarter, 2018 - 71
The MHEDA Journal - First Quarter, 2018 - 72
The MHEDA Journal - First Quarter, 2018 - CEMA FORECAST
The MHEDA Journal - First Quarter, 2018 - ITR ECONOMICS FORECAST
The MHEDA Journal - First Quarter, 2018 - 75
The MHEDA Journal - First Quarter, 2018 - 76
The MHEDA Journal - First Quarter, 2018 - 77
The MHEDA Journal - First Quarter, 2018 - 2018 MHEDA CONVENTION SCHEDULE
The MHEDA Journal - First Quarter, 2018 - 79
The MHEDA Journal - First Quarter, 2018 - THE RULE OF 72
The MHEDA Journal - First Quarter, 2018 - 81
The MHEDA Journal - First Quarter, 2018 - 82
The MHEDA Journal - First Quarter, 2018 - New Members
The MHEDA Journal - First Quarter, 2018 - Spotlight on Association News
The MHEDA Journal - First Quarter, 2018 - 85
The MHEDA Journal - First Quarter, 2018 - MHEDA Milestones
The MHEDA Journal - First Quarter, 2018 - 87
The MHEDA Journal - First Quarter, 2018 - Index to Advertisers by Product Category
The MHEDA Journal - First Quarter, 2018 - Index of Advertisers by Alphabetical
The MHEDA Journal - First Quarter, 2018 - The Last Word
The MHEDA Journal - First Quarter, 2018 - cover3
The MHEDA Journal - First Quarter, 2018 - cover4
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