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Manufacturer Achieves 40% Growth after Removing 20% of its Non-Profitable Customers

reblmarketing.com

OPTIMA OFFICE CASE STUDY

Situation

A premier fresh and frozen baked goods manufacturer was facing closure after ten years operating Primarily as a commissary for a restaurant company parent.

Advice Provided

Optima’s team developed a customer and product profitability matrix with an activity-based costing
approach that focused on activities controlled by their customers. Recommendations included implementing variable pricing based on key cost drivers and focusing the client’s sales and marketing efforts on the most profitable customers.

Results

In less than two months, the company removed more than 20% of its non-profitable customers. Revenues did not drop, and the company achieved profitability for the first time. During the next five years, the business achieved a compound annual growth of more than 40% per year

 

DISCLAIMER – Due to the daily changing environment and guidelines being provided by the government, this information could be outdated. Please contact our office for the latest updates and guidelines. Optima Office is not responsible for any actions taken due to the information provided. The information provided here is for instructional purposes and does not represent legal advice being given by Optima Office.

 

 


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