Aorta Sales

Situation

• Managing Director owner working extremely long hours as a result experiencing family pressures and matrimonial conflict.

• Contracts said to be often won ‘by mistake’ in that when selected the owner discovered that he had under priced the job relative to his competition.

• Unwanted jobs were quoted at double or even triple price in an attempt not to be selected.  Sometimes these jobs came in!

• Many, many small domestic jobs were not profitable to undertake.

• A business sale was sought in a 2-3 year time frame.

Solution

• Proof once again of the reliability of Pareto's Law!, our assessment identified that over 90% of this client's business came from their top 5% of customers.

• Top 5% of customers were identified as Local Authorities primarily undertaking, rewiring, fire alarm, intruder alarm installations for schools. 

• Proposition articulation exercise undertaken to identify key differentiators and USPs for the business.

• Specific marketing and promotion campaign undertaken to directly address local authorities in the area and insurance companies, highlighting the specific benefits if our clients solution to their objectives.

• Small (previously, non-profitable) jobs delegated to junior friendly electrician who enjoyed the type of work the recognition and quickly performed in a more focused and efficient manner.

• Local authority and insurance company promotion quickly resulted in an increase in the bigger more profitable business, management accounting system introduced to develop the attractiveness of this business for sale.

• Contract tendering improvement introduced.

• Total cost to business less than £4000 total return in the region of £500,000 and still growing.