With this service, we work very closely with the Board and deliver information to help making good decisions.
One of our clients was active in sales, supplying products to farms. Although the company had been present on the market for many years and continued to grow (increasing sales), it had a problem with making a profit, despite relatively high margins.
We took a close look at the structure of its sales. The analysis conducted revealed some very interesting facts. There was a very large group of customers whose annual volume of purchases was less than PLN 100. Our client’s sales representatives visited each of them, discussed what their needs are and left the products with the customer (which they usually had in their cars). It often happened that the buyer didn’t have cash to pay for the goods delivered. In such case the representative had to make another visit to collect the payment.
The key to solve the client’s problems was to change the form of cooperation with this group of buyers. Our client stopped providing direct services for them, and instead directed them to shops cooperating with our client. As a result, some of these customers probably stopped using our client’s services, but this was without harm to the client, on the contrary, our client no longer incurred losses related to these customers.
Despite the large uncertainties associated with this change, the end result was very positive. Sales representatives had more time to focus on key customers and after a short decline in revenues, they not only returned to the previous level, but significantly increased and provided a much higher margin.
This story is just one example of the beneficial effects brought by important decisions. Sometimes it happens that we don’t take such decisions, because we have too little information. Some of such information is closely available, some requires complex analysis and some requires collecting data for a period of time. The Finance management service will assist you in conducting the analysis, interpretation of results, and choosing the right solution.