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The true cost of a company's missed sales opportunities

  • March 2010
  • Number of views: 2829
  • Article rating: No rating

Dr. Albert D. Bates
President, Profit Planning Group 
Boulder, Colorado

One of the realities of Management Information Systems (MIS) is that they only express what actually happened. In many instances, it is important to understand the financial and operating impact of what didn’t happen. This is especially important with regard to missed sales opportunities.

Given the severity of the recession, many firms are making some major changes in their operations—lowering payroll, reducing inventory levels and tightening credit policies. Such actions have a very pronounced and very visible impact on financial performance. At the same time, all of these actions have the potential to decrease sales. Nowhere in the MIS is there a proper entry for the economic impact of sales that are not made.

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Categories: Technical topics
Tags: Sales
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