Sales Is Not Profit

Perhaps most people clearly know that Sales Is Not Profit. They don’t need to be told that one is not the other.  But haven’t you seen or worked with people that seem to equate these two though they are totally different things?  Maybe you didn’t realize that some companies chase sales so hard because they think that one automatically leads to the other and therefore more is more. Over the last few years I have worked with several Companies that focused so much on Sales volume that they lost sight of the need to make a profit from those sales.  In fact, many of the sales were marginally profitable and some were horrendously unprofitable.   Money was lost.  The culprits in two cases were “segment managers” that brought new lines of business to the employer who happened to be a general contractor.   These segment managers secured from $2.5 million to $4.5 million each in work for the company in less than one year.  They were then responsible to manage their sold work.  Neither was very good at controlling costs on their jobs.   Neither was very effective at managing crews well.   Both seemed to think that their projects were making money until … Continue reading Sales Is Not Profit