The MHEDA Journal - Fourth Quarter, 2016 - 88

PROFIT firms believe so, sales growth that is too rapid is also a problem. Financing rapid growth is always a challenge, and operating systems tend to get taxed when growth is too rapid. The reality is that almost no firm will ever turn down a rapid rate of sales growth. However, firms should be aware that sales growth solves a lot of problems, but very rapid sales growth tends to create as many as it solves. Again, the ideal level of sales growth is to beat the rate of inflation by somewhere around three percentage points. Firms should make such an effort a central part of their planning process. * Gross Margin Price pressures never go away, even as the economy recovers. It would seem that as sales growth takes hold, firms would enjoy a pricing advantage. The reality is just the opposite. NE NEW OPP OP PORT ORTUNITY!! Diistriibut Di Dis butor orship ors hip ip ps are still a aila ava able for SmarrtL tLiifte fter.r.r Caall for moree info. * * * * No more broken seals, torn tape, or popped lids Vacuum lifts from the side - NOT the top Greatly reduced fatigue, injuries, accidents Zero-force handle, fingertip control Moving Forward SmartLifter™ is PATENTED Material Handling Systems Integrator Since 1971 88 MHEDA | 1themhedajournal.org 814760_WEPCO.indd The excitement associated with increasing sales tends to cause firms to become lax with regard to pricing control. In almost every industry an adequate gross margin is a major determinant of profitability. The real driver behind improved, or at least maintained, gross margin performance is continual monitoring. There is no firm in any industry that could not make a modest improvement in gross margin. * Payroll Expenses Payroll is always the largest expense factor, which means that controlling payroll is essential to controlling expenses. Payroll is another area where a specific improvement goal can be established. Ideally, payroll costs should increase by about 2.0% less than sales. For example, if sales increase by 5.0%, then payroll should only be allowed to increase by 3.0%. At first glance, controlling payroll growth would appear to be a relatively simple, and probably easy, to achieve target. The reality is a different story. Controlling payroll becomes even more difficult in a growth market. Firms often hire in expectation of even more sales growth. In addition, as labor markets tighten, employee retention becomes a larger concern and payroll has the potential to get out of control. * Non-Payroll Expenses The non-payroll expenses are the "least difficult" of expenses to control. Most of these expenses can be brought into line as long as sales really are rising faster than inflation. The vast majority of these expenses are directly related to the rate of inflation. As long as sales growth is maintained above the inflation rate, there is the potential to lower the non-payroll expense percentage. WEPCO, Inc. | O'Hara Industrial Park 101 Armstrong Road, Pittston, PA 18640 570-655-5951 | www.wepcoinc.com 7/30/16 12:40 AM The high-profit firms produce great results virtually every year. They also reflect the fact that there are no industry barriers to success. The key to improved performance is to develop a specific plan for each of the CPVs and combine them in a positive way. The goal is not perfection. The goal is to do a little better across the board. It is an opportunity that is open to every firm. http://www.wepcoinc.com http://www.wepcoinc.com http://www.themhedajournal.org

Table of Contents for the Digital Edition of The MHEDA Journal - Fourth Quarter, 2016

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
Ask Your Board
2016 MHEDA University Calendar
Women in Industry
Mheda Mvp And Mvs Recipients
Mheda Member Profile
@Work
Women @Work
Industry Pulse
Sales Success Stories
2017 Critical Impact Factors
Planning The 2017 Critical Impact Factors
Making Sense Of “All The Things”
Mobile – A Necessity For B2b Marketing
Big Challenge For Small Business
How To Make Millennials Loyal To Your Organization
Returnable Racks And Containers Are A Big Trend In Environmental (And Cost-Effective) Packaging
Sales Intel
Generating Adequate Profit In Turbulent Times
New Members
Spotlight on Association News
MHEDA Milestones
Index of Advertisers by Product Category
The Last Word
The MHEDA Journal - Fourth Quarter, 2016 - cover1
The MHEDA Journal - Fourth Quarter, 2016 - cover2
The MHEDA Journal - Fourth Quarter, 2016 - 3
The MHEDA Journal - Fourth Quarter, 2016 - 4
The MHEDA Journal - Fourth Quarter, 2016 - 5
The MHEDA Journal - Fourth Quarter, 2016 - 6
The MHEDA Journal - Fourth Quarter, 2016 - 7
The MHEDA Journal - Fourth Quarter, 2016 - 8
The MHEDA Journal - Fourth Quarter, 2016 - 9
The MHEDA Journal - Fourth Quarter, 2016 - 10
The MHEDA Journal - Fourth Quarter, 2016 - Chairman’s Perspective
The MHEDA Journal - Fourth Quarter, 2016 - 12
The MHEDA Journal - Fourth Quarter, 2016 - From the Desk of Liz Richards
The MHEDA Journal - Fourth Quarter, 2016 - 14
The MHEDA Journal - Fourth Quarter, 2016 - Editor’s Note
The MHEDA Journal - Fourth Quarter, 2016 - 16
The MHEDA Journal - Fourth Quarter, 2016 - Ask Your Board
The MHEDA Journal - Fourth Quarter, 2016 - 18
The MHEDA Journal - Fourth Quarter, 2016 - 19
The MHEDA Journal - Fourth Quarter, 2016 - 2016 MHEDA University Calendar
The MHEDA Journal - Fourth Quarter, 2016 - 21
The MHEDA Journal - Fourth Quarter, 2016 - 22
The MHEDA Journal - Fourth Quarter, 2016 - Women in Industry
The MHEDA Journal - Fourth Quarter, 2016 - Mheda Mvp And Mvs Recipients
The MHEDA Journal - Fourth Quarter, 2016 - 25
The MHEDA Journal - Fourth Quarter, 2016 - Mheda Member Profile
The MHEDA Journal - Fourth Quarter, 2016 - 27
The MHEDA Journal - Fourth Quarter, 2016 - 28
The MHEDA Journal - Fourth Quarter, 2016 - 29
The MHEDA Journal - Fourth Quarter, 2016 - 30
The MHEDA Journal - Fourth Quarter, 2016 - @Work
The MHEDA Journal - Fourth Quarter, 2016 - 32
The MHEDA Journal - Fourth Quarter, 2016 - Women @Work
The MHEDA Journal - Fourth Quarter, 2016 - Industry Pulse
The MHEDA Journal - Fourth Quarter, 2016 - 35
The MHEDA Journal - Fourth Quarter, 2016 - Sales Success Stories
The MHEDA Journal - Fourth Quarter, 2016 - 37
The MHEDA Journal - Fourth Quarter, 2016 - 38
The MHEDA Journal - Fourth Quarter, 2016 - 39
The MHEDA Journal - Fourth Quarter, 2016 - 40
The MHEDA Journal - Fourth Quarter, 2016 - 41
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The MHEDA Journal - Fourth Quarter, 2016 - 51
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The MHEDA Journal - Fourth Quarter, 2016 - 53
The MHEDA Journal - Fourth Quarter, 2016 - 54
The MHEDA Journal - Fourth Quarter, 2016 - 55
The MHEDA Journal - Fourth Quarter, 2016 - 56
The MHEDA Journal - Fourth Quarter, 2016 - 57
The MHEDA Journal - Fourth Quarter, 2016 - 58
The MHEDA Journal - Fourth Quarter, 2016 - 59
The MHEDA Journal - Fourth Quarter, 2016 - 2017 Critical Impact Factors
The MHEDA Journal - Fourth Quarter, 2016 - 61
The MHEDA Journal - Fourth Quarter, 2016 - Planning The 2017 Critical Impact Factors
The MHEDA Journal - Fourth Quarter, 2016 - 63
The MHEDA Journal - Fourth Quarter, 2016 - Making Sense Of “All The Things”
The MHEDA Journal - Fourth Quarter, 2016 - 65
The MHEDA Journal - Fourth Quarter, 2016 - Mobile – A Necessity For B2b Marketing
The MHEDA Journal - Fourth Quarter, 2016 - 67
The MHEDA Journal - Fourth Quarter, 2016 - 68
The MHEDA Journal - Fourth Quarter, 2016 - 69
The MHEDA Journal - Fourth Quarter, 2016 - Big Challenge For Small Business
The MHEDA Journal - Fourth Quarter, 2016 - 71
The MHEDA Journal - Fourth Quarter, 2016 - 72
The MHEDA Journal - Fourth Quarter, 2016 - 73
The MHEDA Journal - Fourth Quarter, 2016 - 74
The MHEDA Journal - Fourth Quarter, 2016 - 75
The MHEDA Journal - Fourth Quarter, 2016 - How To Make Millennials Loyal To Your Organization
The MHEDA Journal - Fourth Quarter, 2016 - 77
The MHEDA Journal - Fourth Quarter, 2016 - Returnable Racks And Containers Are A Big Trend In Environmental (And Cost-Effective) Packaging
The MHEDA Journal - Fourth Quarter, 2016 - 79
The MHEDA Journal - Fourth Quarter, 2016 - Sales Intel
The MHEDA Journal - Fourth Quarter, 2016 - 81
The MHEDA Journal - Fourth Quarter, 2016 - 82
The MHEDA Journal - Fourth Quarter, 2016 - 83
The MHEDA Journal - Fourth Quarter, 2016 - 84
The MHEDA Journal - Fourth Quarter, 2016 - 85
The MHEDA Journal - Fourth Quarter, 2016 - Generating Adequate Profit In Turbulent Times
The MHEDA Journal - Fourth Quarter, 2016 - 87
The MHEDA Journal - Fourth Quarter, 2016 - 88
The MHEDA Journal - Fourth Quarter, 2016 - New Members
The MHEDA Journal - Fourth Quarter, 2016 - 90
The MHEDA Journal - Fourth Quarter, 2016 - Spotlight on Association News
The MHEDA Journal - Fourth Quarter, 2016 - 92
The MHEDA Journal - Fourth Quarter, 2016 - 93
The MHEDA Journal - Fourth Quarter, 2016 - 94
The MHEDA Journal - Fourth Quarter, 2016 - MHEDA Milestones
The MHEDA Journal - Fourth Quarter, 2016 - 96
The MHEDA Journal - Fourth Quarter, 2016 - 97
The MHEDA Journal - Fourth Quarter, 2016 - Index of Advertisers by Product Category
The MHEDA Journal - Fourth Quarter, 2016 - 99
The MHEDA Journal - Fourth Quarter, 2016 - 100
The MHEDA Journal - Fourth Quarter, 2016 - 101
The MHEDA Journal - Fourth Quarter, 2016 - The Last Word
The MHEDA Journal - Fourth Quarter, 2016 - cover3
The MHEDA Journal - Fourth Quarter, 2016 - cover4
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