Business Planning: Creating unparalleled gross margin

A manufacturer leveraged established product value and saw immediate impact on bottom line.

Business Planning: Creating unparalleled gross margin

Client challenge

  • Margins were tight restricting growth and investment in R&D
  • Could not keep pace with competitors
  • Low prices were impacting brand equity, client perception in the marketplace

Incentica’s Solution

Increase price by connecting clients to quantifiable benefits:

  • Determined key needs of clients
  • Quantified product/service alignment with needs
  • Compared competitor price to needs delivery ratio
  • Recommend price increase and least path of resistance in market
  • Consult with stakeholders to create plan
  • Coach execution, monitor plan for adoption in the market

Impact on client’s business:

Rapid path to margin growth

  • Universal acceptance of new pricing by current and prospective clients
  • Gross Margin increased by 100% almost overnight and was sustained
  • Tens of millions more cash to put into R&D and create further momentum
  • Brand equity and market perception improved dramatically
Steve Williams CExP™, CMAA

is a Partner at Incentica Business Plans in Calgary. He is a certified exit planner and mergers & acquisitions advisor with 30 years of senior management and executive experience. Steve has written over 130 business plans and succession/exit plans for some of the biggest best, including Fortune 500 companies. Steve is a Business School grad and Harvard educated.

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