Customer Value as a Panacea for Inflation Threats
Any time is appropriate for questioning value deliveries to customers. Corporations run by former sales people are especially vulnerable to exaggerated claims of customer loyalty. Some stock investors buy quarterly management stories about why market shares have grown faster than profits. However, stock exchange veterans prefer to see selling price increases as marks of customer preferences, above all else. It is true that some marketing investments require more than a year to realize full returns. However, these costs invariably appear below the Gross Margin line. Hence, trends in this ratio speak volumes about the basic health of any stock. Inflation…