Oh, shit! Embarrassing. How could I miss that? Thanks God, that the CEO knew better. But perhaps there is another way around it? But first I must find out the relation between the yield and the cabin factor and when I do, I might find a way.
I tried to sort it all out and if I got it right, the yield is the average revenue of the utilized capacity, while the cabin factor only tells us how much capacity was absorbed. For example, an airplane has 100 seats, but only 25 were sold, means a cabin factor of 25%.
Now I believe I’ve got it right, well fairly right at least! Thanks GOOGLE!
So, with this newly gained knowledge I’ll see what options that could leave me with in terms of chasing new PROFITABLE clients.
The less value a cargo shipment has, probably also means, that the freight owner would not accept a shipment price without a heavy discounting.
If that’s correct, it would mean, that our only chance to find new profitable cargo would start with two steps:
1) Find cargo owner around our harbors.
2) See if any of them has any high value cargo.
Discounting is a very offensive and shortsighted weapon! And I think it is a very dangerous weapon as well, as it tends to spread like a continuous disease or like a bushfire. It’s unstoppable. It also creates a mentality within the sales force to just get the order at any cost.
Discounts as such should not be approved by the sales people nor by their managers. No, it has to be a boardroom decision! As its risks are far more dangerous to the company than its chances to contribute to a profitable and healthy future!
Nemo now says based on his newly gained experiences:
“Selling without well thought through economical insights and guide lines is as bad as sailing without nautical charts. Took me some time to see that, but now I do”.
Dedicated his full life to business in Sweden as well as in the US, Germany and Switzerland. Also a number assignments all over the world.
Experiences; salesman, sales leader, marketing director, vice president and CEO.