Distribution managers have long been enamored of the idea of generating incremental sales volume. Theoretically, incremental volume represents additional sales that can be generated without any increase in expenses. In distribution vernacular, "it all goes to the bottom line." 

The problem with the incremental volume concept is that there are both good and bad ways of generating such volume. In the overwhelming majority of cases the costs associated with servicing the sale tend to be underestimated. Further, the idea of a "cost-free" sale too often leads to serious margin erosions. The combination of higher-than-planned expenses and a low gross margin is almost always disastrous. Click here to read the full article. You must be use your AHTD login for the members-only benefit. 

Cone Drive expands global reach of Harmonic Solutions® with launch in Asia