The client doesn’t always tell us what their current cost is, is so we can’t always calculate the savings we give them. But sometimes, we know what our savings means to them.
On this project, we received a referral — a company needed to reduce costs in order to cut in distributors, rather than just retailers. In their industry and many others, being able to get your product in with 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 highly customized soft cooler from China. Still, they came to us with a goal of cutting costs down to $10.50 per unit.
Through an aggressive cost reduction process, we found an amazing cooler manufacturer in Xiamen, China. To reduce cost, we went so far as to find a different plastic bag supplier for the factory to use.
The client now pays $6.53 for one SKU and $6.10 for the other, while freight is about $1.50 each. We came in well below their target, and the client is now picking up distributors and more international clients as a result.