Another Wisdom From The Wise Kanselor 

Recently, I sat in a weekly management meeting of one of our FMCG clients in Ikeja. The National Sales Manager stood up confidently and announced: 

“We did over TEN BILLION naira in sales in the last 30 days.” The room lit up. He recommended bonuses for the sales team. But the MD asked one question that changed the entire atmosphere: 

“If we are doing all these billions… why am I struggling to pay bills?” Then the accountant stood up. And what he revealed is what is quietly killing many FMCG wholesalers. For their every ₦100 in sales: 

Gross profit = N7 

Cost of sales = N 10 

Which means… They were losing ₦3 on every ₦100 sales made. Read that again. MORE SALES… MORE LOSS. 

THE HIDDEN TRAP MOST WHOLESALERS DON’T UNDERSTAND 

The profit in FMCG wholesale is not in your fast movers. It is hidden inside your slow-moving SKUs. Let me break it down simply. If you are distributing something like Indomie: Fast-moving normal indomie carton may give you ₦100 profit per carton. Slow-moving variants like the Onion may give you ₦500 profit per carton Manufacturers already know this. Their entire pricing structure assumes that you will balance fast movers with slow movers, where most businesses get it wrong. 

Your sales team is chasing volume not profit because most FMCG business measure sales team by revenue generated and not unique SKUs sold So what do they do? They push only fast-moving products because they are easier to sell and help them hit targets faster. They increase “impressive” turnover numbers But what is the result? You are scaling revenue… and bleeding losses at the same time.

THE SIMPLE SHIFT THAT CHANGES EVERYTHING

Let’s compare: If your rep sells 6 cartons of fast-moving indomie at N100 profit per carton, you make ₦600 profit. But if your system enforces SKU sales that says for every 5 fast movers, 1 slow mover one slow mover must be sold, then for the same sale of six cartons your profit jumps ₦1,000 profit Same effort. Same customer. 67% more profit. MOST BUSINESSES FAIL AT SCALE because they focus just on revenue and not sku contributions to the revenue. They are tracking Revenue, Volume, Market coverage but they are blind to: SKU profitability Sales mix quality Contribution margins

THIS IS WHERE REAL COMPANIES WIN Serious businesses don’t leave this to chance. The deploy tools like THE KANSELOR PROFIT ENGINE metrics visibility tools Inside the Kanselor Profit Engine™, one of the most powerful pillars is: METRICS VISIBILITY It doesnt just show you sales but also Which SKUs are making you money Which ones are draining you Which reps are selling profitably Which ones are just inflating numbers

TO LEARN HOW TO USE THE KANSELOR PROFIT ENGINE SYSTEM TO BLOCK PROFIT LEAKAGES IN YOUR BUSINESS, CONTACT THE KANSELOR TEAM ON 08023622171