The Client:
The client was a medical supply company, servicing a variety of businesses locally and online. Their products included full medical kits of varying sizes, and the replacement supplies for each of their kits. The client came to us because they were struggling to bring consistent sales, and wanted to expand their market share. Further to that, they felt they were missing the mark in their business because they had hit a plateau. So they really needed help.
The Client’s Unique Edge:
Providing hands-on customer service, with superior quality medical kits and supplies for people and businesses of varying sizes.
The Goal:
To discover areas of new growth for the business.
Our Approach:
After a detailed interview with the client, we discovered that the owner had never done specific market research to define the target audience, so we knew we needed to start there. We analysed the current client base, and completed a competitor analysis, using both primary and secondary data, to see the broader picture of the market. We also initiated a full review of the pricing structure for the business before we made our recommendations.
Our Two Surprising Finds:
The first area of opportunity we uncovered for the business, was a stream of recurring revenue that was completely untapped. The client provided supplies only on demand, rather than setting up long-term contracts with automatically shipped refill orders. By signing refill contracts, our client would be able to create a steady and recurring stream of revenue, which would give a steadier income flow and consistent projections each month. Based on the competitor analysis we conducted, the second surprising find was that the client was extremely underpriced, as compared to other competitors in the market, and their product was vastly superior. An immediate increase in price for their products was warranted.
The Rest of the Research and Recommendations:
Our complete analysis of the client’s business revealed several areas of opportunity. The first, as we mentioned above, was to build a structure for recurring contracts. This would provide a recurring stream of income that the company lacked. We recommended setting up one year, three years and five-year contracts, with a pricing structure that rewarded long-term contracts with discounted pricing for kits and refill supplies.
In order to keep the reputation of the high-quality service they were known for, our client would continue to call or visit each customer on a regular basis to maintain the relationship, instead of doing so to place orders. Our client had very little turnover in the customer base, which was a testament to the excellence in customer service. We wanted to make sure all their customers still benefitted from the hands-on approach. The new long-term contracts actually offered an increase in the customer service options, because the customers could now choose to pay a smaller amount each month, rather than a larger invoice with the iron-demand orders, and they would be able to accurately predict each bill for their expenses.
Next, we discovered the client did not include the shipping costs of the products into the landed cost of goods, though they did charge shipping to the businesses they serviced. The charge was simply left as an expense for the business, and not recovered in the pricing strategy. We suggested they alter the landed costs for the products to include this charge and accurately reflect the actual cost for each product before the markup was calculated. This would increase the base cost of the product, and improve the profit margins for the company.
The third recommendation was to increase the pricing overall because they were well underpriced in the marketplace for the quality of products they provided, as compared to the competitors in their industry. We worked together to bring their pricing into proper alignment and still give them a competitive edge in the market.
Finally, we researched the types of businesses that required medical kits. The biggest untapped areas for the client were in educational facilities, corporations, and government agencies, with the latter providing the most opportunity.We recommended the client complete the certification that would allow them to sell to any government agency, and open up a highly underserviced region.
In order to reach out to these organizations, we developed an in-depth LinkedIn marketing plan for the client. This included case-studies and content creation educating their audience, a recommendation for LinkedIn ads and a tailored follow-up system with potential customers. We also suggested the client develop stronger ties with the Workplace Safety Boards in the company’s service areas, in order to develop a better referral rate.
About Bottom Line Marketing:
Our philosophy is: Your business is meant to stand out from the crowd.We are a boutique marketing firm that creates tailored strategies for businesses serious about growth and want a marketing plan to make it happen. By taking an innovative approach toward proper research, integrating it with the psychology of consumer behaviour, and collaborating fully with our clients, we effectively develop and implement customized and engaging strategies for each one. Whether it’s web design, internet marketing, traditional marketing, SEO expertise, or stunning print material, Bottom Line Marketing delivers results.
The Results:
As a result of our recommendations, our client has greatly expanded their customer base and continues to gain ground in new markets. The company is much more profitable with the new pricing structure that now includes proper cost reporting and higher margins, and the client is now enjoying the benefits of having a stable and recurring revenue source.
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