Lightning Listening Lightening Listening had grown fast, adding retail customers at a rapid pace. The company's...

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Lightning Listening Lightening Listening had grown fast, adding retail customers at a rapid pace. The company's design IP and patented manufacturing process had helped it create Bluetooth audio products (mini speakers, headphones, hearing aids, amplifiers, hearing protection, etc..) with amazing sound quality. However, such rapid growth had not been without challenges. The company's number of products had grown rapidly at the same time that the number of new retail customers had ballooned. Bob Lightning, the founder, came into your office to discuss his concern about the situation. Bob was an engineering genius with an audiophile's passion. He started the business eight years ago when his son suffered hearing damage at a concert. Bob: "I got a call yesterday from the head of sales support. They want to add five new positions and a new expensive CRM software. I am wondering if this added expense makes sense. We have grown so fast, I really don't know our customers anymore. I want to know who we are selling to and how they contribute to profit. I have always been told that the top customers make up the most profit in many businesses. I am also concerned about our product creep. We have so many models now....does it all make sense? Which of our products are most profitable? Are there products we should stop selling? I asked IT to send you the last three months of sales by customer and model so you can get me some answers." Questions to answer: 1. What vendors make up the top 80% of profit? 2. How do the remaining vendors contribute to profit? 3. How does each model contribute to profit? 4. What model do our top vendors buy? 5. What models should we consider discontinuing? E2 fx A B D E F G H 1 ID TCOD Customer Name Vendor Customer Group 2 13558 P BEST BUY #0085 BEST BUY 3 13559 P BEST BUY #084 BEST BUY 4 13560 P BEST BUY #77 BEST BUY 5 13561 P BEST BUY #70 BEST BUY 6 106650 P BEST BUY #70 BEST BUY 7 106659 P BEST BUY #77 BEST BUY 8 106673 P BEST BUY #084 BEST BUY 9 106693 P BEST BUY #0085 BEST BUY 10 106700 P BEST BUYS #87 BEST BUY 11 154090 P BEST BUY #70 BEST BUY 12 154091 P BEST BUY #70 BEST BUY 13 154092 P BEST BUY #77 BEST BUY 14 154094 P BEST BUY #77 BEST BUY 15 154095 P BEST BUY #084 BEST BUY 16 154096 P BEST BUY #084 BEST BUY 17 154097 P BEST BUY #0085 BEST BUY 18 154098 P BEST BUY #0085 BEST BUY 19 154099 P BEST BUYS #87 BEST BUY 20 154100 P BEST BUYS #87 BEST BUY 21 106658 P BEST BUY #70 22 106670 P BEST BUY #77 23 106692 P BEST BUY #084 BEST BUY 24 106699 P BEST BUY #0085 BEST BUY 25 106708 P BEST BUYS #87 BEST BUY 26 121426 P BEST BUY SERVICE BEST BUY 27 5630 P BEST BUY #084 BEST BUY 28 5632 P BEST BUY #77 BEST BUY 29 5636 P BEST BUY #70 30 5638 P BEST BUY #0085 BEST BUY BEST BUY 31 5643 P BEST BUYS #87 BEST BUY BEST BUY BEST BUY Old ACCOUNT New ACCOUNT NO 3057010020 Model # 13JM100 3057010084 3057010020 13JM100 3057010077 3057010020 13JM100 3057010070 3057010020 13JM100 3057010070 3057010020 13JM100 3057010077 3057010020 13JM100 3057010084 3057010020 13JM100 3057010085 3057010020 13JM100 3057010087 3057010020 13JM100 3057010070 3057010020 13JM100 3057010070 3057010020 13JM100 3057010077 3057010020 13JM100 3057010077 3057010020 13JM100 3057010084 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010087 3057010020 13JM100 3057010070 3057010020 13JM150 3057010077 3057010020 13JM150 3057010084 3057010020 13JM150 3057010085 3057010020 13JM150 3057010087 3057010020 13JM150 3027570000 3057010020 13VTH60 3057010084 3057010020 13VTJ100 3057010077 3057010020 13VTJ100 3057010070 3057010020 13VTJ100 3057010085 3057010020 13VTJ100 3057010087 3057010020 13VT1100 NO 3057010085 3057010084 3057010085 3057010085 3057010087 Raw Data Vendor Profit J K L M N QTY ZIP5 WH WEIGH CUBIC S CAT FRZIF 16 91761 WC 321 21 AAB 92647 423 24401 HQ 8502 575 AAB 7430 299 73401 TX 6009 406 AAB 75261 263 55438 AT 5286 357 AAB 30245 180 55438 CH 3618 244 AAB 60446 116 73401 TX 2331 157 AAB 75261 243 24401 113 91761 348 45840 CH 4884 330 AAB 60446 WC 2271 153 AAB 92647 CH 6994 473 AAB 60446 476 55438 CH 9567 647 AAB 60446 476 55438 CH 9567 647 AAB 60446 695 73401 AT 13969 945 AAB 30245 695 73401 HQ 13969 945 AAB 7430 652 24401 AT 13105 887 AAB 30245 652 24401 AT 13105 887 AAB 30245 324 91761 WC 6512 440 AAB 92647 324 91761 WC 6512 440 AAB 92647 730 45840 CH 14673 993 AAB 60446 729 45840 CH 14652 992 AAB 60446 180 55438 AT 3618 244 AAB 30245 116 73401 TX 2331 157 AAB 75261 243 24401 HQ 4884 330 AAB 7430 113 91761 WC 2271 153 AAB 92647 348 45840 HQ 6994 473 AAB 7430 121227 CH 34 3 AAV 60446 496 24401 HQ 210 73401 TX 12697 5376 964 AAV 7430 408 AAV 75261 1378 55438 281 91761 935 45840 CH WC CH 35276 2678 AAV 60446 7193 23936 546 AAV 92647 1817 AAV 60446 Lightning Listening Lightening Listening had grown fast, adding retail customers at a rapid pace. The company's design IP and patented manufacturing process had helped it create Bluetooth audio products (mini speakers, headphones, hearing aids, amplifiers, hearing protection, etc..) with amazing sound quality. However, such rapid growth had not been without challenges. The company's number of products had grown rapidly at the same time that the number of new retail customers had ballooned. Bob Lightning, the founder, came into your office to discuss his concern about the situation. Bob was an engineering genius with an audiophile's passion. He started the business eight years ago when his son suffered hearing damage at a concert. Bob: "I got a call yesterday from the head of sales support. They want to add five new positions and a new expensive CRM software. I am wondering if this added expense makes sense. We have grown so fast, I really don't know our customers anymore. I want to know who we are selling to and how they contribute to profit. I have always been told that the top customers make up the most profit in many businesses. I am also concerned about our product creep. We have so many models now....does it all make sense? Which of our products are most profitable? Are there products we should stop selling? I asked IT to send you the last three months of sales by customer and model so you can get me some answers." Questions to answer: 1. What vendors make up the top 80% of profit? 2. How do the remaining vendors contribute to profit? 3. How does each model contribute to profit? 4. What model do our top vendors buy? 5. What models should we consider discontinuing? E2 fx A B D E F G H 1 ID TCOD Customer Name Vendor Customer Group 2 13558 P BEST BUY #0085 BEST BUY 3 13559 P BEST BUY #084 BEST BUY 4 13560 P BEST BUY #77 BEST BUY 5 13561 P BEST BUY #70 BEST BUY 6 106650 P BEST BUY #70 BEST BUY 7 106659 P BEST BUY #77 BEST BUY 8 106673 P BEST BUY #084 BEST BUY 9 106693 P BEST BUY #0085 BEST BUY 10 106700 P BEST BUYS #87 BEST BUY 11 154090 P BEST BUY #70 BEST BUY 12 154091 P BEST BUY #70 BEST BUY 13 154092 P BEST BUY #77 BEST BUY 14 154094 P BEST BUY #77 BEST BUY 15 154095 P BEST BUY #084 BEST BUY 16 154096 P BEST BUY #084 BEST BUY 17 154097 P BEST BUY #0085 BEST BUY 18 154098 P BEST BUY #0085 BEST BUY 19 154099 P BEST BUYS #87 BEST BUY 20 154100 P BEST BUYS #87 BEST BUY 21 106658 P BEST BUY #70 22 106670 P BEST BUY #77 23 106692 P BEST BUY #084 BEST BUY 24 106699 P BEST BUY #0085 BEST BUY 25 106708 P BEST BUYS #87 BEST BUY 26 121426 P BEST BUY SERVICE BEST BUY 27 5630 P BEST BUY #084 BEST BUY 28 5632 P BEST BUY #77 BEST BUY 29 5636 P BEST BUY #70 30 5638 P BEST BUY #0085 BEST BUY BEST BUY 31 5643 P BEST BUYS #87 BEST BUY BEST BUY BEST BUY Old ACCOUNT New ACCOUNT NO 3057010020 Model # 13JM100 3057010084 3057010020 13JM100 3057010077 3057010020 13JM100 3057010070 3057010020 13JM100 3057010070 3057010020 13JM100 3057010077 3057010020 13JM100 3057010084 3057010020 13JM100 3057010085 3057010020 13JM100 3057010087 3057010020 13JM100 3057010070 3057010020 13JM100 3057010070 3057010020 13JM100 3057010077 3057010020 13JM100 3057010077 3057010020 13JM100 3057010084 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010020 13JM100 3057010087 3057010020 13JM100 3057010070 3057010020 13JM150 3057010077 3057010020 13JM150 3057010084 3057010020 13JM150 3057010085 3057010020 13JM150 3057010087 3057010020 13JM150 3027570000 3057010020 13VTH60 3057010084 3057010020 13VTJ100 3057010077 3057010020 13VTJ100 3057010070 3057010020 13VTJ100 3057010085 3057010020 13VTJ100 3057010087 3057010020 13VT1100 NO 3057010085 3057010084 3057010085 3057010085 3057010087 Raw Data Vendor Profit J K L M N QTY ZIP5 WH WEIGH CUBIC S CAT FRZIF 16 91761 WC 321 21 AAB 92647 423 24401 HQ 8502 575 AAB 7430 299 73401 TX 6009 406 AAB 75261 263 55438 AT 5286 357 AAB 30245 180 55438 CH 3618 244 AAB 60446 116 73401 TX 2331 157 AAB 75261 243 24401 113 91761 348 45840 CH 4884 330 AAB 60446 WC 2271 153 AAB 92647 CH 6994 473 AAB 60446 476 55438 CH 9567 647 AAB 60446 476 55438 CH 9567 647 AAB 60446 695 73401 AT 13969 945 AAB 30245 695 73401 HQ 13969 945 AAB 7430 652 24401 AT 13105 887 AAB 30245 652 24401 AT 13105 887 AAB 30245 324 91761 WC 6512 440 AAB 92647 324 91761 WC 6512 440 AAB 92647 730 45840 CH 14673 993 AAB 60446 729 45840 CH 14652 992 AAB 60446 180 55438 AT 3618 244 AAB 30245 116 73401 TX 2331 157 AAB 75261 243 24401 HQ 4884 330 AAB 7430 113 91761 WC 2271 153 AAB 92647 348 45840 HQ 6994 473 AAB 7430 121227 CH 34 3 AAV 60446 496 24401 HQ 210 73401 TX 12697 5376 964 AAV 7430 408 AAV 75261 1378 55438 281 91761 935 45840 CH WC CH 35276 2678 AAV 60446 7193 23936 546 AAV 92647 1817 AAV 60446