RT Journal Article
SR Electronic
A1 Vodák, Michal
T1 Analysis of alternative approach to determining of customers' profitability level
JF Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
YR 2014
VO 55
IS 6
SP 265
OP 272
DO 10.11118/actaun200755060265
UL https://acta.mendelu.cz/artkey/acu-200706-0028.php
AB This paper describes alternative approach to analysis of customers profitability based just on volume of purchased goods. By including average distance of customers' distributional places as additional criteria for profitability analysis and using cluster analysis as a method for ranking customers is proven that assessing of customers' profitability can be more accurate.This approach to evaluation of customers' profitability changes order of customers listed acordingly to profit they generate. In fact it shows that in business terms is room for improvement and harmonisation of relationship among some business partners in certain cases. Recalculation of business conditions which comes from detailed analysis can bring either increase of competitiveness by price reduction or increase of incomes by rising price of goods.