Pricing Success Stories and Case Studies

 

 

Success Story – MRO & Custom Manufacturer

Highlights:

–Starting Situation: Company had continuing losses and had to hit an earnings target by the bank.

–Financial Implementation: After initial resistance and fear, the sales team got on board and realized the power of earning “The Number”.

–Operational Implementation: We suggested the Velocity Scheduling System to get “more jobs done faster”. Operations saw significant increase in productivity – and this was leveraged for profitability with the Job Shop Pricing System!

–Results: Achieved a 14% EBT increase, positive cash flow, and beat the bank’s earnings target in less than a year!

Success Story – Custom Precision Milling

Highlights:

–Starting Situation: Recent financial losses.

–Financial Analysis: Strong resistance by internal estimators.

–Implementation: But the owner insisted!

–Results: 4 of the last 12 months are over 20%!

Success Story – Custom Machining

Highlights:

–Starting Situation: URGENT, negative cash flow!

–Financial Analysis: “The light bulb just went on!” The owner had just realized the power of “The Number”.

–Implementation: Lost one customer, positive cash inflows because lost customer paid for inventory.

–Results: Nearly immediate large jump in profitability.

Success Story – Custom Precision Machining

Highlights:

–Starting Situation: Company had continuing losses  which the owner was funding.

–Operational Implementation: Began with Velocity Scheduling System to get “more jobs done faster”.

–Financial Implementation: After VSS success, then went through Job Shop Pricing System and improved profitability.

–Results: Over a 20% EBT increase in 12 months!

Success Story – Custom Fabricating

Highlights:

–Starting Situation: Company struggled with times estimates for complex projects.

–Financial Situation: Company struggled with quoting and maintaining margins.

–Implementation: Team was engaged in the process and realized there were many opportunities to increase profitability by using “The Number”.

–Results: Went through the Job Shop Pricing System and improved quoting and profitability.

Success Story – Custom Converter

Highlights:

–Starting Situation: Company had implemented the Job Shop Pricing System, to increase profitability.

–New Sales Goal: With sustained profitably from the initial implementation, the owner wanted to increase revenue by 25% the next calendar year.

–Results: Achieved a 25% increase in revenues and sustained the existing, high EBT percentage!

Success Story – Custom Milling & Fabrication

Highlights:

–Starting Situation: The shop was hovering around breakeven and had losses for many prior months.

–Financial Implementation: Shop owner gained confidence in using “The Number” and as a result “stopped buying work”.

–Sales Funnel Implementation: The shop also worked with Dr. Lisa of the Science of Business on its online marketing (Search Engine Optimization) and profitably grew sales – by using “The Number”!

–Results: Achieved a 10% EBT increase, sustained profitability, and gained confidence in pricing!