Case Studies

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Pricing Case Study

Misdiagnosing the symptoms

The problem

I worked with a local tool hire and repair company with a turnover of c.£20k per month. This relatively successful business contacted me thinking they had a sales & marketing problem i.e. the only way they could grow was to acquire more customers. 

On inspection, it transpired they had £10,000 worth of tools waiting to be repaired. 

Additionally, with most of their customer base being based in the trades e.g. construction, plumbers, electricians, they had accrued over £40,000 worth of trade debt. 

That’s a total of £50,000, or 2.5 times their normal monthly revenues – basically, cash sat on the table, waiting to be collected.

The intervention

I asked the business owners to close up shop for four weeks – and you can imagine the reaction! But they did it, and they refactored the invoices via an invoice financing company and cleared down the backlog of repairs.

The outcome

Within 6 weeks, they had recouped nearly £48,000 - there was no sales & marketing problem, their business was broken and needed repairing.

A ‘stuck’ mindset

The problem

I worked with a shed business that sold sheds for £450. These would generate £100 profit and took one day to build. 

They told me about another product on the market, ‘garden studios’, which sold for £15,000 each, made 50% more profit, and took a third of the time to build. 

When I challenged them on why they were selling sheds and not garden studios, they said ‘we bought a shed business so we’ve always sold sheds!’ – in essence, they were stuck in their early business model mindset.

The intervention

We introduced garden studios into their product portfolio and they knocked down several sheds on their forecourt and started building a showroom studio.

The outcome

Before the show studio was even completed, they’d sold two garden studios. 

Now, their sheds sell for 25k each, and they sell two or more of this product a month – and, as a bonus, as they’ve built up their own expertise they have gone on to halve the time it takes to build the garden studios making further efficiencies. 

Building a long-term, sustainable business model

The problem

I worked with a small web design company making less than a thousand pounds per month, building Wordpress websites for which they charged just a few hundred pounds, and then an additional £8 per month for supporting and hosting.

The intervention

Over 18 months we went through several mindset shifts where we went on to double, and then treble their prices.

The outcome

Their core package is now £1,200, with a minimum £50 charge per month for support and hosting - they also have a waiting list of clients. The business now makes around £6000 a month with £2,500 of that being recurring revenue so even if they stopped building websites, they still have a sustainable business, which they didn’t have before.

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