Challenge:
This small plastics manufacturer is recognized for quality and on-time delivery, yet new and repeat sales to existing customers (highly profitable) were relatively flat and gross profit margins were declining.
Our Goal:
To generate new sales and repeat business through existing customers and improve gross profit margins.
Actions Taken:
- Analyzed estimated versus actual costs for materials and labor hours for past jobs to identify gaps and 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 customer on a monthly basis.
Our Results
Within 6 months, material costs were reduced by 17% and profit increased 26% without any additional spending on marketing and lead generation. Revenue from existing customers increased 22% versus prior year. By year-end, net profit margins were 2 times the industry average.
Ready to Create Your Own Success Story?
Are you ready to move your business in a better direction and wonder if working with a business coach can make a difference? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.
To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com