ProfitBuilder case study Mid-sized business with 30% gross margin increase

The Situation

We were asked to review the contract base of a £100m revenue service business.

What we did

• Compiled a detailed gross margin analysis for each contract and region of the business
• Analysed the demand for each of the services lines
• Over a period of a year, increased the uptake of higher margin service contracts and reduced the lower margin services contracts
• Revenue overall continued to grow

The outcome

The gross margin of the business increased by over 30% through firstly understanding each contract’s margin and then changing the mix of contracts.