Case Study – Plastics Manufacturer

Plastics Manufacturer Business Case StudyChallenge:

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.

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