Increasing Profitability and improving staff morale in the long term

About

With 15 years of experience, our client is in the industrial services in designing, manufacturing, and providing precision machinery. The current bulk of customers are from the automobile, electronic, and communication industries. The company now offers a range of products mix and employs a staff of 500.

Challenge

It had been a usual scene that there was a cluster of personnel going to the CEO’s office and they were gone the next day. This trend went on and on. Staff felt very insecure and there was high staff turnover. Business development directors dreaded daily sales meetings with no updates on new leads or business pipelines. They were counting the days to receive their paychecks and wondering when it would be their turn to see the CEO.

Adam Morris knew these scenes were the signs of financial woes. Lots of cash had been pumped into raw materials and work in progress items to finished goods. That’s why he knew his company had a big problem on its hands.

As Morris points out “Suppliers keep bugging me for payment and threatened to stop the usual supply when the finished good should be scheduled for next week. This is really bad facing both customers and suppliers”

To overcome these hurdles, Morris and his team needed a solution that would help them present their high-quality products in a simple engaging way. The stakes were high, without better presentations, sales would fall far short and jeopardize. He needed to cut cost by looking at the bad performers to axe them.  Movements at the CEO’s office had been very frequent. Staff went there never came to office again. There was no notice sent to the staff and wild speculations all over the place.

Not a single idea on what was happening in the office, the best business development personnel tendered taking away a few major revenue sources.

Solution

For the company’s long-term success. Morris began to search for a reliable business strategy firm with powerful customized plan would have an immediate impact at the company.

After looking at the value cost analysis, Morris selected Crestpoint Consulting for the deep track records with fast results in battling the numerous teething issues in his company.

Without any further delays, Crestpoint Consulting kick-started the company overall view analysis and identified key ideas.

Profitability

Morris was stumped by this one question. Are we making enough to cover the fixed cost and budgeted expenditure?

He was very disappointed after receiving the first report from Crestpoint Consulting. The products have not performed well financially. The sales cannot cover the product costs and staff salaries. The salespeople made deals that were not to the company’s interest but only to get more sales commission. The operations were not properly optimized at the manufacturing lines with excess resources unutilized.

 Customer needs

No one realizes that products for aerospace have lesser demand. After having surveys and chats with customers as suggested by Crestpoint Consulting. Things have taken a change in the customers’ demand due to the change in their own strategic plan. After researching these new areas as these new demands in the findings, Morris was thrilled to know there are untapped sources of income based on their own work and expertise.

His company can dive automotive, telecommunications, and electronics products with good profit margins.

Results

Morris stopped all loss-making products and moved on to potential customer bases. He was able to increase the sales volume generated, hitting net profit margin at 45% to sales.

There is no more heavy reliance on a few major customers and sales staff are made to sign a redrafted employment contract with an added non-competition clause to safeguard company’s interest. Sales representatives are only awarded the high commission for deals hitting the targeted profit margins. Everyone is now very happy.

Industrial Service Firm Profitably Generated Double-Digit Sales Growth made a Big Switch in Product Mix with Crestpoint Consulting Industrial Service Firm Generated Double-Digit Sales Growth with increasing profitability -made a Big Switch in Product Mix with Crestpoint Consulting

Morris personally contacted all major customers himself to lock in long working relationships of paramount importance. The staff is kept updated on the current issue and happenings. They are incentivized with the high payout for excellent ideas implemented that helped the company. Optimal resource allocations are achieved at each product line.

Crestpoint Consulting hasn’t just helped Morris to earn steady high-profit results but created the life he wants and stress-free to work on his own dreams.

 

About Crestpoint Consulting

Crestpoint Consulting produces immediate increasing profitability business results using our ProActive Profit Thriveprint & highly trained Professional staff to

create lasting profits results that elicit long term business potential and continuity for CEOs, stakeholders and employees We utilize our simulators, putting greens, and hitting bays to customize a solution for each and every client, Achieving more than 5X Return on Investment (ROI).

We Champion the Bold to Achieve the Extraordinary.

Everything we do, we believe in Challenging Status Quo. We believe thinking Differently and Achieving Immediate results By the Easy process in the Shortest Time.

Our Mission is Helping Bold CEOs Increase Consistent Profits, Massive Business Opportunities, and Cashflow through Value-Added Financial Leadership and Tailored made Growth Strategy.

Check out our free ebook “5 Easy Ways to Increase Profits” to Start Winning Today!