The client doesn’t always tell us what their current cost is so we can’t always calculate the savings we give them. But sometimes we know what our savings means to them.
One of our clients referred another company to us because they needed to get their cost down in order to hit a price target to be able to cut in distributors rather than just retailers and direct to the end user. In this industry and many others, being able to get your product in the big distributors is like the Holy Grail. It means much higher volumes that can take your business to the next level.
This client was already getting their product from China, a highly customized fabric insulated cooler. (We chose not to include a picture for proprietary reasons of the clients design and privacy) We don’t know what their original cost was but know their goal was to be able to sell it to distributors for $21.00 each in which they were not able to before.
Through us, their cost including freight to their door is now $9.23 and we are not done yet. We expect to get the price down under $9.00 by the next order. They can and are already now selling to distributors at that price. Something they may never have had the opportunity to do without our services. This cost savings absolutely resulted in higher sales through distributors and higher margins through retailers and direct to end user sales.