Quality Fuel

Any engine needs fuel to perform. Fuel must meet two criteria. Quantity and quality. There must be enough fuel to get the vehicle where it’s going. It must be of a type and quality that the engine is able to use efficiently.

For business, fuel is provided by sales. Fuel quantity is not driven by the volume of sales but by gross profit. Selling low margin goods requires selling more of it.

Quality is determined by the fit between the customer needs and the ability of the business to service those needs. If your business is not suited to servicing a particular client and their bespoke requirements, selling that client, even at a high-profit margin, clogs up the system with sludge. This affects the benefit derived from every subsequent client while that sludge is in the engine.

It’s not just about having fuel, but about having the right fuel. You learn this the hard way when you fill up your diesel truck with petrol.

 

Scott Rodgerson

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