Realized six-figure annual savings, helping a client discover the most efficient product delivery strategy
The Problem: Many of our clients come to us with profitability concerns. Often, their financials are not organized in ways that allow for clear financial evaluation. A particular client came to us because they were operating at a financial loss and they did not know where they were losing money.
The Solution: After helping this client reorganize their financials to clearly evaluate revenue and costs of each product line, we discovered that substantial costs of goods were not properly accounted for in one of their product delivery models. These costs were being absorbed by the company, instead of being passed on to the customer, and were costing our client hundreds of thousands of dollars each year. In evaluating the problem, we offered the client options to resolve the issue and bring them back in the black. Options included increasing marketing efforts to grow revenue, increasing prices to recuperate the indirect costs, or close down the warehouse and move to a drop-ship delivery model instead.
The Result: The client recognized the inefficiencies of warehousing and decided to move to a drop-ship model. After helping this client take actionable steps to sell their warehouse, reduce staff and overhead costs, they have saved hundreds of thousands of dollars per year and are now operating profitably.