Here are overviews of just a few of our success stories.
- End Result: Labor cost savings of more than $500,000, and company positioned for exponential growth
- Despite beefed up marketing efforts, a manufacturer with worldwide clientele was unable to grow its business. The problem, we found, was that when at full production capacity, quality went down and deadlines were missed. As a result, customers become dissatisfied and withdrew orders. By conducting an internal product cost and margin analysis, we determined that more than 50 percent of the products produced at the factory could be bought elsewhere for less. By eliminating these products from the production line, the company was able to consistently deliver more profitable, high quality products. To achieve its growth objectives, the company redirected the money saved— more than $500,000—to expand its sales force, create new distribution channels, and develop new lines of high-margin products and services.
- End Result: Business application software solution implemented, leading to a 20 percent increase in profits
- A four-star restaurant was unable to generate a sufficient profit to meet its overhead costs, despite excellent sales and customer reviews. The problem? There were multiple weaknesses in the company’s financial reporting systems. After installing a food costing system, the restaurant was able to re-engineer its menu and model a desired sales matrix. Leveraging this information, the restaurant reviewed its staffing requirements, began staggering employee start times, and enjoyed a nearly instant increase in profits.
- End Result: Internal controls implemented, HR polices strengthened, senior management changed, and more than $200,000 saved
- Faced with declining operations—due, in part, to an overall poor economy and increased competition from newer establishments— the hotel owner needed help. After conducting a site inspection and evaluating the organization’s financial and operating activities, we found that department managers were not monitoring employee arrival times and absences, and department cashier were improperly handling charges and cash payments. We recommended that certain senior managers be reprimanded and that a new HR system be implemented, so that the hotel could generate detailed labor reports. Further, we suggested the hotel tighten security and accuracy by giving cashiers and other staff individual swipe cards. Thanks to its stronger auditing and reporting capabilities, the hotel was able to reduce over-payments and leakage by more than $200,000.
Industry: Real Estate Management Company
- End Result: Improved cash flow, enhanced tenant relationships, and a $300,000 per year loss averted
- A real estate manager and developer’s income was falling. Based on our analysis, the owner quickly learned that its tenant billing was problematic (they were waiting until year end to bill, and then trying to collect significant shortfalls). Further, renewal rents were significantly below market pricing, resulting in an annual deficit of $300,000, and the maintenance staff was taking too long to prepare vacated apartments for rent. We helped the company develop new lease abstracts and checklists, so that all relevant data could be entered into a new property management system. We defined costs pools and made tenant billings more consistent. We also helped implement stronger, enforceable rent renewal guidelines. In addition to an improved cash flow, the company was able to fill vacancies more quickly at markets rates and, concurrently, reduce their administrative costs.