Pricing Success Stories and Case Studies*
Success Story – Aerospace Custom Turning
Highlights:
–Starting Situation: Company had years of stagnate profitability all the while meeting more and more stringent quality requirements.
–Sales Challenge: The Company’s customers were heavily concentrated in aerospace, and as a result of the pandemic they faced a dramatic loss in sales.
–Results: The Company more grew its Net Profit Percentage by 15 points (in less than 12 months) – despite a 15% loss in sales!
–They were making more money while working less!
–Our pricing allows us to retain the customers that appreciate us and avoid the customers that don’t appreciate what we do!
–I don’t feel like a slave to the business anymore!
Contact Horberg today: https://horberg.com/
Success Story – Custom Tool & Model Shop
Highlights:
–Starting Situation: Company had just come through one of its worst years and had many internal obstacles to overcome.
–Profit Goal: The Company’s owners simply wanted to return to a “normal” level of profitability, between 2-5% Net Profit %.
–Results: Achieved a 25% increase Net Profit % in less than 12 months, more than DOUBLING their highest hopes of profitability.
–But wait, there’s more! Not only did they double their target, but they also DOUBLED IT AGAIN, going all the way to a 24% Net Profit %.
–That’s a total of a 38 Percentage Point gain in Profitability!
Contact CTM today: https://www.ctm-corp.com/
Success Story – MRO & Custom Manufacturer
Highlights:
–Starting Situation: Company had continuing losses and had to hit an earnings target by the bank.
–Financial Implementation: After initial resistance and fear, the sales team got on board and realized the power of earning “The Number”.
–Operational Implementation: We suggested the Velocity Scheduling System to get “more jobs done faster”. Operations saw significant increase in productivity – and this was leveraged for profitability with the Velocity Pricing System!
–Results: Achieved a 14% EBT increase, positive cash flow, and beat the bank’s earnings target in less than a year!
Success Story – Custom Precision Milling
Highlights:
–Starting Situation: Recent financial losses.
–Financial Analysis: Strong resistance by internal estimators.
–Implementation: But the owner insisted!
–Results: 4 of the last 12 months are over 20%!
Success Story – Custom Machining
Highlights:
–Starting Situation: URGENT, negative cash flow!
–Financial Analysis: “The light bulb just went on!” The owner had just realized the power of “The Number”.
–Implementation: Lost one customer, positive cash inflows because lost customer paid for inventory.
–Results: Nearly immediate large jump in profitability.
Success Story – Custom Precision Machining
Highlights:
–Starting Situation: Company had continuing losses which the owner was funding.
–Operational Implementation: Began with Velocity Scheduling System to get “more jobs done faster”.
–Financial Implementation: After VSS success, then went through Velocity Pricing System and improved profitability.
–Results: Over a 20% EBT increase in 12 months!
Success Story – Custom Fabricating
Highlights:
–Starting Situation: Company struggled with times estimates for complex projects.
–Financial Situation: Company struggled with quoting and maintaining margins.
–Implementation: Team was engaged in the process and realized there were many opportunities to increase profitability by using “The Number”.
–Results: Went through the Velocity Pricing System and improved quoting and profitability.
Success Story – Custom Converter
Highlights:
–Starting Situation: Company had implemented the Velocity Pricing System, to increase profitability.
–New Sales Goal: With sustained profitably from the initial implementation, the owner wanted to increase revenue by 25% the next calendar year.
–Results: Achieved a 25% increase in revenues and sustained the existing, high EBT percentage!
Success Story – Custom Milling & Fabrication
Highlights:
–Starting Situation: The shop was hovering around breakeven and had losses for many prior months.
–Financial Implementation: Shop owner gained confidence in using “The Number” and as a result “stopped buying work”.
–Sales Funnel Implementation: The shop also worked with Dr. Lisa of the Science of Business on its online marketing (Search Engine Optimization) and profitably grew sales – by using “The Number”!
–Results: Achieved a 10% EBT increase, sustained profitability, and gained confidence in pricing!
*By sharing past performance of VPS clients we are in no way implying that YOU will achieve similar results.
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