Case Study - Office Supplies
Issues:
Sales and margins were eroding due to intensified competition, inconsistent marketing and poor pricing administration.
Our Goal:
To grow sales in all categories and increase overall profit margins.
Actions Taken:
- Updated and cleaned up customer database for ease in marketing to existing customers.
- Developed a stronger value proposition, with clearly defined benefits, to stop competing on price
- Expanded value-added services, including free same day delivery to local market
- Refocused sales efforts on ideal business customers and premieum products - and implemented a sales process to convert more without discounting.
- Implemented a monthly marketing program to promote products in all categories - to both stimulate sales and build awareness for the full range of products and services.
- Developed a system for monitoring supplier price changes and modifying retail prices, online and in store, as appropriate.
- Increased prices on select products and established gross profit margin guidelines to assist sales people in quote preparation for businesses.
Results Achieved:
Within 3 months, overall revenue increased 32% and profit margins grew by 12%. Monthly specials and customer 'stay connected' efforts helped the business grow sales in cleaning supplies and furniture categories, producing higher margins.
