SALES ANALYSIS AND

RECOMMENDATIONSBy

Judd Humpherys

See Spread Sheet for Detail Data Analysis

ASSUMPTIONS #1

For this analysisA major customer is defined as any company that generates $30,000 or more per year in annual revenue.

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

TRENDS #1

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

3.8% between 2011 and 2012

17.9% between 2012 and 2013

The company is losing revenue

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

TRENDS #2

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

Accounts lost in 2011 – 7 (lost revenues - $1,487,482)

Accounts lost in 2012 – 12 (lost revenues - $1,743,720)

Accounts lost in 2013 – 1 (lost revenues - $65,243)

The company is losing major accounts to competition:

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

TRENDS #3

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

From $34,304 to $21,110 over a 4 year period.

That is a decrease of 38.46%.

The average annual revenue from new major accounts decreased:

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

TRENDS #4

Bottom Line Sales Trends BOTTOM LINE SALES TRENDSThe purchase of 75% of the top 109

customers has decrease

00.5

11.5

22.5

33.5

44.5

5

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

TRENDS #5

Bottom Line Sales Trends BOTTOM LINE SALES TRENDS

Major accounts acquired in 2010 – 14

Major accounts acquired in 2011 – 14

Major accounts acquired in 2012 – 3

Major accounts acquired in 2013 – 0

The company’s ability to acquire major accounts has decreased:

We Must Fix This Trend Immediately

2010 2011 2012 2013 YTD 2013 Run Rate

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000 $34,304 $35,212 $33,768

$15,832

$21,110

Average Annualized Revenue Contribution Per Newly Acquired Customer

Average Annu...

Major Customer Thresh-old

No New Major Customer in 2013

New Major 14 14 2 0 major customers recruitedCustomers

WE MUST FIX THIS TRENDS IMMEDIATELY

We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW

2010 2011 2012 201302

4

68

10

1214

16

18

01

13

17

Customers lost

Customers lost

We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW

2010 2011 2012 20130

5

10

15

20

25

0

23

5

2

Customers added

Customers added

We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW

2010 2011 2012 20130

5

10

15

20

25

01

13

17

0

23

5

2

Customers lostCustomers added

The trends show the business is loosing customers, not able to attract new customers, and not able to retain existing customers.

2011 2012 2013(P)

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%17.12%

-3.81%

-17.91%

Sales trend Y-oY

Sales Trend Year on Year BasisSALES TREND YEAR ON YEAR BASIS

Trends - Top 20 Customers (70% of sales)

2010 2011 2012 2013(P)0.00

1000000.00

2000000.00

3000000.00

4000000.00

5000000.00

6000000.00

7000000.00

Total SalesSale from top 20 Customers

National Freight Growth Rate is approximately 4.6%

Sales Trending Down

TRENDS – TOP 20 CUSTOMER (70% OF SALES)

GENERAL OBSERVATIONS #1

5 Customers contribute 39%

of sales

20 Customers contribute 75%

of sales

31 Customers contribute 80%

of sales

52 Customers contribute 90%

of sales

76 Customers contribute 95%

of sales

109 Customers contribute 98%

of sales

317 Customers make up 100% of

sales

GENERAL OBSERVATIONS #2

Lost 9 customers who were among the top 20

Lost 22% of sales due to 4 of those 9

customers

Lost 10% of sales due to 3 of those 9

customers

Lost 5% of sales due to 2 of those 9 customers

Total lost sales from those 9 customers was

37%

Only added 3 new customers between

2010-2013 whose contribution

was among the top 20

GENERAL OBSERVATIONS #3

The Sales increased due to new customers

was mere 4% out of top 20 in 2013

Lost major contributors during last 4 years and unable to replace them with new customers.

28% of the top 109 customers stopped

purchasing from company

About 20% of customers reduced

their purchase by 75% on average by 2013

14 customers who contributed 25% of

sales ($1.42 million) are no longer with

company in 2013.

SOME QUESTION TO ASK

Is the company building relationships with freight brokers & agents?

Is the company using load boards, like DAT and Internet Truck Stops?

Is the company incentivizing its drivers to find business?

Does the company have a customer retention program in place?

Is the company targeting specific major accounts?

Has the company identified any major accounts to target?

Does the company have a CRM program in place to build and track sales calls and relationships?

CALL TO ACTION

I never identify a problem without recommending solutions and

suggesting the ones I think WOULD WORK THE BEST.

Call me if you would like to discuss my thoughts on potential solutions

to these sales issues (801-360-1628)