In an article published recently in the “Technology” section of The Wall Street Journal, the author, Jack Nicas, alluded to pricing excellence in the three giants of U.S. and global technology: Apple, Google, and Amazon. Here are the results of the last quarter:
* Apple showed a revenue increase of 13% and a profit increase of 12%.
* Alphabet experienced a revenue increase of 24% and a profit increase of 28%.
* Amazon reported a revenue increase of 38% and a profit increase of 50%.
Take a minute to consider those numbers. They are remarkable.
Clearly Alphabet’s strength in Google’s ad revenues contributes to the company’s strong profit position. The sheer number of clicks on ads is growing as Internet user numbers continue to grow. They are not without challenges, though, as revenue per click continues to fall.
We spend a lot of time speaking with companies that are challenged with increased revenue and reduced profit. For example, let’s look at auto companies in contrast to the three tech giants. Auto makers are often challenged with pricing execution. They rely on excessive discounting to achieve sales goals—often at the expense of profit.
Here's my question: how does your revenue growth compare to your profit growth? Are you a winner like Apple, Alphabet, and Amazon? Or, do you continue to struggle like some of the auto makers?
Be honest: how does your company stack up?