ProfitBuilder case study SME with £200k profit improvement

The Situation

The management team of a £5m turnover retail business wanted to increase their profitability to enable them to further invest in the business.

What we did

  • Introduced product cost cards for each product, gaining a detailed understanding of gross profit by product
  • Benchmarked the sales price of similar products at our competitors
  • Reviewed the value proposition of our products against the competitor products
  • Reviewed the promotions and reduced the discounts being offered
  • Increased the sales price of a number of product categories after modelling the likely volume impact

The outcome

In the first year, we increased profitability by over £200k or 4% of turnover after accounting for volume drop. This benefit re-occurred in future years. The management team were delighted and were able to invest the additional profits in growth.

Pricing project profit increase PB2

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