Profit Enhancement Programs
Questions to Ask
Description of Service
A structured in-depth approach to identifying practical opportunities to reduce expense and increase income.
A distributor of floor coverings wanted a plan to turnaround sagging sales and decreasing profits. Results -- Both a short-term and long-term profit enhancement plan was developed to include increasing sales volume, narrowing the product line, and changing the mix of products while lowering inventory levels, closing unprofitable distribution centers, and developing expense controls for the headquarters location. Operating expenses were dramatically reduced and the company returned to a profitable state in only 18 months.
A regional building supply chain desired a plan to improve profits, build on organizational strengths, and develop a plan to boast declining sales in a highly competitive DIY market. Results -- A profit enhancement program provided a series of actionable items management undertook. Unprofitable ancillary operations were sold for a gain with the proceeds being invested in the core business. Physical appearances and store merchandising were marked improved, while inventory turnover was increased through improved purchasing.
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