Our portfolio of case studies here will guide you in assessing your immediate needs as to how we can assist you in moving forward to achieve your goals in taking your business to the next level.
1. Century Furnishers
Century Furnishers was a furniture factory in Cape Town specialising in case goods such as cabinets, cupboards etc. The company had been quite successful amongst smaller independent retailers, but was struggling to get into the corporate (chain) business. The feedback they got from customers via their sales manager was that their pricing was too high. They worked hard to bring products to the market at ever lower prices and margins without success.
We recommended a simple survey of the buyers at the major retailers to establish their perceptions. The survey results showed that the chain buyers regarded the product inferior because the pricing was way below competitors. In reality the product was not inferior.
2. An Independent Pharmacist
An independent pharmacist with an outlet in Randpark Ridge signed a lease to take a second outlet in Midrand. Approached for comment we advised that the Midrand area at that time had a very small pharmacy market and there were already 3 pharmacies trading in the town. He was unable to cancel the lease, so we advised that he negotiate a better position for the store within the centre and do a survey of residents to establish their needs and preferences in order to refine his product assortment.
The survey showed that most of the residents in the area had been living there a fairly short time, and many were still using their (known and trusted) pharmacist from their previous location. The survey also showed which of the Doctors was most favoured in the area, the most popular brands of cosmetics , toiletries and baby products and where they had pharmacy accounts.
We recommended that the client launch a major opening promotion offering free products to people who opened accounts. Revlon obliged with very attractive gift packs, the desired Doctor was persuaded to take premises nearby and the merchandise range was tailored to the needs of the community.
It was all a resounding success! The pharmacy achieved double its target in the first month, and went on to more than double its targeted sales for the year, with outstanding profits.
3. Landscaping Business
A new Landscaping business in Somerset West was growing rapidly, but not making enough money to be sustainable. An examination of the pricing structure showed the proprietor had misunderstood how to apply the mark-up factor, and was consequently under-pricing her services. A small formula change and her business thrived.
4. Computer Services Company
A Computer Services company in Cape Town was running smoothly, but also not generating a sufficient return for sustainability. An analysis of their client base showed that nearly 80% of their sales came from a handful of customers, with only 20 % from over a hundred small clients. We recommended that they introduce a differential pricing structure and significantly raise prices for the smaller ad – hoc client base.
5. Internet Café
The proprietor of an Internet café in Taupo, New Zealand, was interested in putting a coffee bar into the premises, and needed to know whether they would sell enough coffee to make the venture worthwhile. We did a census of all the coffee bars coffee shops and coffee kiosks in the town and estimated their sales. From this, and taking into account the location of the store we were able to provide one estimate of sales. A second estimate was derived by an analysis of their internet café sales per day and month over the past year, with assumptions on how many patrons would buy a cup of coffee. To this was added an assumption for passers-by. The two estimates were fairly close.