Five Effective ways Cement manufacturers can increase their profit

Posted by pooja late on September 28th, 2018

Within the last 15 years, we have witnessed tremendous growth in the cement industry. This growth can be attributed to different factors, which has led to an increased profit for cement manufacturers. Nevertheless, not all cement manufacturers have experienced this profit. It is merely a shadow of what they have anticipated. If you are among these, this article will educate you on five ways of increasing your profit. These methods have been proven successful over the years.

Encourage value-added products

Value-added products such as fiber, water reducers, and retarders, which helps concrete to be poured from a high slump help in making the finished product easier. Furthermore, training your customer service providers and dispatch offers on the product and handing out instructions will be helpful to your company. Products such as fiber, set retarders, and water reducers aren’t expensive but help in bringing forth additional profit. Your customers will appreciate your product and this will trigger a further purchase. Remember, the more sales you have, the more profit you make.

Identify your most cost-effective clients 

At first, this may look not feasible. However, this will be based on the revenue and yards poured on each hour. Using the excel program, you can break down every information stored in your dispatch system. Once you have identified the most cost-efficient clients, you can provide a discount for them in exchange for having more sales. Furthermore, for customers with low-profit margin, you may consider speeding up the delivery process.

Calculate your major Cost of delivery (COD) accounts.

Your COD is represented by about 30 to 35 percent of a producer’s business. You must consider the time taken to generate the COD revenue. This cost must be measured, which is possible by providing an account number for each customer. This account number is important for tracking every delivery done on each client.

Stick to the car driver golden rule

Get associated with the drivers and entice them with something in return for leads. Associate with your clients to gain their trust and respect. Get feedback on potential clients given to you. You should remember to reward great leads and information with something. You must understand that taking cement products from cement plants to the destination of the customers isn’t an easy task, which is why the drivers must be appreciated.

Reinforce the bond between the sales and dispatch team.

To have increased profit from your cement plant, you need a perfect relationship between your dispatch and sales team. Both teams must work together on every project if you want to increase your profit. You must encourage your sales team to understand how orders are taken. Furthermore, the main function of the dispatch software must be used effectively.

Author’s Bio

John Long in this piece explores five important ways cement manufacturers can increase their profit. He further enlightens his audience on the importance of rewarding their team when dispatching product from the cement plant to the customer’s location.