Story-Convert your Problems in to Profits

In and around 1990’s Canadian Cement Manufacturing company CEMEX was facing trinity of challenges, by the time cement had become a commodity product, too many competitors fighting each other in the market and wafer thin margins. They were on the edge of bankruptcy.

Management decided to take on these challenges; first they started studying their clients and patterns of usage of their product. At the end of the study they realized maximum of their produce (cement) is first used to make concrete by mixing sand and other ingredients in to it at end users place and then it is used to build homes and other structures. They could see 3 opportunities in it, first instead of only selling cement, they now could add sand and other ingredients in to cement and sell ready mix concrete to their clients, this way instead of selling only cement now they were selling mix of 3-4 products, secondly since they could add value to products they started commanding premium by being the first to market it. Result of all this their revenue increased and profits shot up.

In the process CEMEX’s identity changed from Cement Product Manufacturing company to Ready Mix Concrete Services Company.

Learning from the story

1. Continuously strive to know your clients and understand the usage of your products.

2. Move up the value chain by adding more value to your products and services to be more profitable and relevant to clients.

3. Try converting your commodity products in to services to capture bigger wallet share.

Questions to ask ourselves

1. Do I know my clients and actual usage of my products and services?

2. How can I add more value and move up the value chain?

3. How can I convert my products in to services and be relevant to my client segment?

If you want to know your clients better, add more value by moving up the value chain and attract high paying clients, consider this as personal invitation to my 4 hour Seminar

1. How to at least DOUBLE your income.

2. How to build a valuable business which can be sold in part or full if needed.

3. & How to PUT your Business on AUTOPILOT which WORKS and GROWS without you.