The following analysis by long-time industry expert Al Bates examines key profit drivers in wholesale distribution across 40 lines of trade monitored by the Profit Planning Group. The pattern seen in 2010 is very close to what has been demonstrated in previous business cycles. This article benchmarks these key drivers and provides insight into the impact changes in each of these areas may have on distributors’ bottom lines.

Al Bates is author of Triple Your Profit! Stop Being a Profit Soldier and Start Being a Profit Winner, available now at www.mdm.com/tripleyourprofit.

To maximize your profitability, you must set priorities based on what drives dollars to the bottom line the quickest.

Key profit drivers most important to improving your financial results include:

Sales – Increasing sales volume without increasing fixed expenses.

Fixed Expenses – Reducing the level of fixed expenses without …