Case Study - Plastics Manufacturer

Issues:

Sales to existing customers were relatively flat and gross profit margins were declining.

Our Goal:

To grow sales through existing customers and improve gross profit margins.

Actions Taken:

• Analyzed quote estimates versus actual cost for materials and labor hours, to identify gaps, improve quote assumptions and realized profit margins.

• Streamlined and systematized purchasing of raw materials; established multiple suppliers in all key areas

• Refocused sales efforts on ideal target customers, higher margin products and repeat orders from existing customers.

• Developed and implemented an account management process for all existing customers; monitored sales by account on a monthly basis.

Results Achieved:

Within 6 months, material costs were reduced by 17% and profit increased 26% without any additional spending on marketing and lead generation.  Revenue through existing customers increased 22% versus prior year.  By year end, net profit margins were 2 times the industry average.