planes, boats & planograms howard bergman. the power of the customer there is only one boss. the...
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![Page 1: Planes, Boats & Planograms Howard Bergman. The Power of the Customer There is only one boss. The customer. And he can fire everybody in the company from](https://reader036.vdocuments.site/reader036/viewer/2022062407/56649c745503460f949279f8/html5/thumbnails/1.jpg)
Planes, Boats & PlanogramsHoward Bergman
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The Power of the Customer
There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.
Sam Walton
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Planes
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Cost of a Flight$58,050
• Fixed - $46,050– Jets– Airport facilities– Customer service– Mechanics– Pilots– Flight attendants– Baggage handlers
• Variable - $12,000– Fuel– Food
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Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $12,800
Ave Cost/passenger (16) = $3628Loss/Profit = $45,250
$800/seat4 rows @
$3,200/row = $12,800
$460/seat11 rows@
$2760/row =$30,360
Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $27,800
Ave Cost/passenger (46) = $1261Loss/Profit = $30,250
Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $58,160
Ave Cost/passenger (112) = $518Loss/Profit = $110
$320/seat10 rows
@$1,980/row =$19,800
Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $77,960
Ave Cost/passenger (172) = $337Loss/Profit = $19,910
$500/seat5 rows @
$3,000/row = $15,000
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$300/seat15 rows @
$1,800/row = $27,000
Total Cost = $48,000 Variable Cost = $12,000Total Revenue = $27,000
Ave Cost/passenger (90) = $555Loss/Profit = $21,000
Low Cost Airlines
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$175/seat15 rows
@$1050/row =$15,750
$800/seat4 rows @
$3,200/row = $12,800
$500/seat5 rows @
$3,000/row = $15,000
$460/seat6 rows@
$2760/row =$16,560
Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $44,360
Ave Cost/passenger (82) = $708Loss/Profit = $13,690
Total Cost = $58,050 Variable Cost = $12,000Total Revenue = $60,110
Ave Cost/passenger (172) = $337Loss/Profit = $2,060
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BOATS
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= Our engines
Cost = $80Price = $100Total Profit =
$100
$20
$20
$20
$20
$20
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= Our engines
Cost = $80Price = $95
Total Profit = $75
$15
$15
$15
$15
$15 Total Profit = $90
$15
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PLANOGRAMS
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Maximize Economic Profit
What does a Retailer Need?
Increase Margins
Increase Turns
Increase other sources of income
Decrease cost of capital employed
Decrease cost of operations
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Store LayoutY
ard
FoodPharmacy Houseware
Clothing
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Planogram
Assortment: What to carry
Pricing: What retail price
Promotion: How to display it
Placement: Where to put it
Supply: How much, how often
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Assortment:Variety vs Duplication
1 5 10 15 20 25 30 35 40 50 70
% of Items
0%
20%
40%
60%
80%
100%% of Dollar Sales
Are these items worth keeping?
How many items ? How many sizes ? Will the consumer
switch to another brand ?
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$2.00$3.00$3.15 - $3.00 =$0.15
$2.20 -$2.00 =$0.20
$0.15 X 100/month =$15.00/month $0.20 X 50 month =
$10.00/month
$25.00/month
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$0.15 X 150/month =$22.50/month
$0.20 X 25 month = $5.00/month
$27.50/month
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Maximize Economic Profit
What does a Retailer Need?
Increase Margins
Increase Turns
Increase other sources of income
Decrease cost of capital employed
Decrease cost of operations
![Page 19: Planes, Boats & Planograms Howard Bergman. The Power of the Customer There is only one boss. The customer. And he can fire everybody in the company from](https://reader036.vdocuments.site/reader036/viewer/2022062407/56649c745503460f949279f8/html5/thumbnails/19.jpg)
Yar
d
FoodPharmacy Houseware
Clothing
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The Power of the Customer
There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.
Sam Walton
![Page 21: Planes, Boats & Planograms Howard Bergman. The Power of the Customer There is only one boss. The customer. And he can fire everybody in the company from](https://reader036.vdocuments.site/reader036/viewer/2022062407/56649c745503460f949279f8/html5/thumbnails/21.jpg)
The End
Thank You
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$3628
$1261
$518
$337
1721124616
$800
$500$460
$350
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MPLS Las Vegas
6:00 pm 7:00 pm
8:00 am11:00 am
8:00 pm11:00 pm
6:00 am 7 am
2 Full FlightsProfit = $42,000
2 Additional Flights 1/2 full
Variable Cost = $24,000Revenue = $44,360
Loss/Profit = $20,300Total Profit = $62,300