Profit improvement is a good example of where CFO Team can bring added value. At CFO Team we believe that focusing on “Gross Margin” is the key to profit. CFO Team will analyze your entire company with a focus on increasing gross margin.

Some examples of companies we have helped.

Distribution Company – A large distribution company had approximately 35,000 sku’s. They were pricing all of their products with a 30% mark up to match competitors. When CFO Team analyzed their business they discovered some important issues. First, most of their competitors only stocked about a third of the sku’s that they stocked. The competitors only stocked the fastest moving items and back ordered the customer on the rest. Second, the customer normally only price shopped the 500 most sought after products and the customer did not like back orders. Armed with this information CFO Team segmented the products and left the fastest moving 500 products priced at a 30% mark up, but the remaining products were priced with a 40 to 50% mark up knowing that the number one concern for the customer was availability. This increased overall gross margin 11%.

Dealership – CFO Team analyzed the service work on new units being received at a dealership. It became clear that the service technicians were spending more time getting the units ready for sale then they were being reimbursed under the warranty program. CFO Team reviewed the manufacturer’s warranty program and rewrote the dealership’s new unit check in procedures to include the service items that were being performed but not being reimbursed under the warranty program. This change resulted in an average of an additional $70.00 per unit.

Manufacturer – The manufacturer was a job shop with several clients ranging from very low volumes to extremely high volumes. CFO Team analyzed the clients on a one year basis and segmented them into 4 categories. CFO Team was able to show how some clients with low volumes, constant changes and set ups were just not profitable in that organization. Working with management we were able to identify the customers, industries and types of jobs that this organization could produce with the highest quality and increased gross margins. By training their sales team to focus this specific type of work not only did their margins increase but so did their efficiency and quality. As their performance increased so did their sales. They not only increased their gross margins but also significantly increased their market share.

Let us help you increase your profitability!

Contact CFO Team Today for a Free Consultation. info@CFOTeam.com