TCII :: Management Consultants
Building Profitable Business
The client was initially hesitant to increase prices so we arranged a test with a sample of 4, non-critical customers.
Of these, 3 accepted without significant comment and the 4th, following negotiation, also accepted.
As a result the new prices were rolled out to the entire customer base with some minor losses only.
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Creating a USP to maintain competitive advantage
Our client had enjoyed healthy growth and repeat business, fitting new flooring into retail outlets and other commercial businesses. However, they then started being undercut by competitors but wanted to avoid getting into the downward spiral of a price war.
Our challenge
To help our client devise and implement a strategy that would
- maintain existing turnover/profit ratios
- generate new business in the medium and long term.
What we did
First we set up a customer survey positioned as a vehicle to generate feedback to improve customer service.
Next we assessed and interpreted the results of the survey to identify what the clients customers saw as being of value. For example, where a customer complimented the client for quality of work and completion on time, we worked with the client to understand the consequence of not completing on time or delivering that quality……e.g. possible need to do the work again, delay in outlet opening hitting sales, etc.
The positive feedback from the survey prompted us to recommend that the client increase his prices and we developed material that he could use to support this move e.g. the positive results and the ‘risk’ involved of choosing a competitor who could not be guaranteed to have the same understanding of the customer’s needs or the same quality focus.
The outcome
The client was initially hesitant to increase prices so we arranged a test with a sample of 4, non-critical customers.
Of these, 3 accepted without significant comment and the 4th, following negotiation, also accepted.
As a result the new prices were rolled out to the entire customer base with some minor losses only.
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