What is Your "MSP"?

For many consumers and producers, MSP is an acronym for Manufacturer's

Suggested Price. Today, as a business owner or executive, I would like you

to consider a different definition for these commonly used letters

–Marketing, Sales and Profitability.



In an earlier article, "Do You Know and Plan for the 3-R's for Your

Business," the focus was on Relationships, Referrals and Revenue. One of

the most consistent challenges for any small business owner or executive is

the actual implementation of the strategic business plan that builds the

3-R's (Relationships, Referrals and Revenue). The MSP of Marketing, Sales

and Profitability helps to overcome that issue.



Since relationships are the first R, the necessary action is to construct a

Marketing Plan to increase relationships. This plan should be specific to

your company and not the "shadow" of a company that you admire. Many

business owners and executives attempt to "copy" someone else's brand

identity and fail to establish their own identify. Marketing plans require

research and evolve from a solid vision, values and mission statements.



The second R of referrals generates the greatest amount of Sales. Sales

plans and marketing plans are closely related and need to be aligned to

ensure that potential opportunities are realized. Within the Sales' plan,

specific goals are necessary to ensure that the marketing plan is effective.

For example, how many "mailers" are necessary to secure an appointment? How

many appointments result in a second appointment? How many second

appointments turn into a sale? Knowing your numbers is critical to the sales

process and more importantly your own internal motivation.



Revenue is the third R and is a partner of profitability or what some may

call productivity. This P is the direct result from M and S. Some companies

work on the philosophy of high sales and low profitability while others use

an opposite approach. Profitability is an absolute necessity and should be

examined on a regular basis.



Today's business world is complex, but still retains the simplicity of

earlier marketplaces. If you know your MSP, you will be able to build the

3-R's.