Expanding Production Creates Business Opportunity
Manufacturer of plastic pipe was looking for another method of packaging that would not be destroyed in handling. Finished product was stored outdoors and had to be covered in UV-resistant material that would not rip.
Developed custom application combining existing UV technology from bulk bag production and small bag production methods. Received $1.2M in additional business from very satisfied customer. Additional business represented 16% increase in annual revenue.
Expanded business opportunity by creating product that can be sold to other customers. Combining methods and materials and challenging production team created new, innovative, workable product.
Successful Problem Solving Earns New Business
Major account was about to stop trials for new product due to production loss in sealing bags. Bag was going through trials at large pet food manufacturer to replace multi-wall paper bags and was causing unusual wear on trimming knives and improper closing due to incomplete trim.
Met with manufacturer of trimming equipment to run trials and was able to explain problem to an engineer. Engineer solved trimming issue through teleconference by suggesting adjustment to equipment.
Trimming and sealing issues were solved. Company immediately realized $1M in new business annually and account continues to grow.
Competing on Advantages Lowers Production Costs
Inexpensive finished bag imports were keeping industry prices down while costs continued to rise. In order to keep major selling points of short lead times, custom artwork, and less-than-container load orders, bags still needed to be manufactured in United States Chinese fabric was under quota restriction and not readily available.
Partnered with manufacturing to design value bag, which had fewer raw materials in finished product. Rolled out value bag at same margin as traditional bag.
Sold two million bags in first three months of production. Kept total volume of bags sold and margin same while total sales dollars decreased due to lower cost.
Identifying Untapped Market Generates Corporate Growth
Textile company had recently acquired manufacturer of new and replacement military aircraft windows and canopies. Revenue was $5M annually and falling 15%. Operating company had been focusing on government work and was not searching for growth in other markets.
Developed marketing focus to generate growth at subsidiary. Visited manufacturer to understand products and capacity. Reviewed civilian markets for similar aircraft to discover much larger total market.
Identified $10M market in civilian replacement business currently underserved. Directed future marketing efforts toward civilian aircraft needs.
Service After Sale Promotes Customer Loyalty
Existing company had recently entered swimming pool cover market and was in process of producing first orders. Company was new account, purchasing material for product manufacture.
During follow-up visit, discovered company was trimming finished edge of custom order which would cause failures in the field. Worked with manufacturing department to hem edges and modify how production was utilizing fabric to meet safety requirements.
Assisting customer in manufacture by utilizing fabric differently accounted for customer savings of $50K on order in one day. Customer loyalty resulted in $500K annual account.
Responding to Customer Needs Gains Market Share
Sales in product category were stagnant with $100K annual revenue in $3M market. Two major users of product had been purchasing from competitor for more than 10 years.
Contacted both customers to review product and service needs and what company was looking for in follow-up. Established relationship with decision maker at both companies. Found gaps in service not provided by other supplier.
Responding to customer needs developed $1.5M sales in first 12 months. Company attained 90% market share within 18 months, reaching $2.5M sales annually.
Formalized Partnership Increases Annual Sales
Informal business partner obtained, treated, and packaged recycled materials that firm resold, generating sales of $500K annually, with profits of less than $50K.
Partnership was too informal, roles were unclear, and seemingly, no one entity was responsible for getting all of recycled material from suppliers. Recycled material was often discarded before it could be collected.
Worked with partner to develop legal partnership, defining roles clearly and assigning responsibilities. Financial and sales responsibilities assigned to company, and materials handling assigned to partner.
Clearly defined partnership roles increased sales 100% in first 12 months. Sales grew to $1M with profits of $500K realized annually.
Improving Communication Promotes Healthy Employee Relations
Highest paid salesperson serviced company’s two largest accounts. Salesperson threatened to resign with institution of new compensation plan that would move pay from straight salary to salary plus commission. Salesperson felt that new compensation plan would decrease personal income.
Discussed salesperson's concerns and reviewed compensation program in detail, as well as past performance. Justified maintenance of current income level with new compensation plan and opportunity for dramatic increase in annual income with additional business.
Salesperson realized potential for greater income and agreed compensation program was beneficial to salesperson and company. Salesperson did not resign and grew core business, adding two new accounts with annual value of $500K+.
Finding Hidden Value Increases Annual Revenue
Investors had acquired Cady Industries and decided to shut down operations. While overall company was not viable, some parts were valuable as separate operations, including division that had unique products and was profitable.
Bankers had made decision to close company within two months, making it difficult to find buyer for profitable division. Approached HWI (Korean Group), major vendor to division, and presented opportunity to purchase assets of division and continue unique business.
Division was saved from closure by brokering sale of inventory, equipment, and records. Division is currently growing 16% annually, with increase of $1M in annual revenue (currently $7M).
Contracting New Processor Saves Major Account
Company was receiving complaints regarding quality of fuel additive sold and risked losing account. Contract processor did not produce additive to specifications. Attempts to examine company equipment maintained in plant and manufacturing process were refused by contract processor.
With no access to process being allowed, met with attorney to begin removal of equipment and material. Approached different contractor to review and agree on criteria, specifications, and handling. Also agreed on open access to production facility.
Newly contracted processor began production of fuel additive. Saved $750K annual power plant contract with increased quality control at new processor.
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