Case Studies
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Case Studies |
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Sell Value and Trade Up The client is a privately owned manufacturer of industrial textiles. Products are sold to OEM and converter accounts through a direct sales force. Sales are in the $200 million range. The company sold a woven textile product for reinforcing molded rubber parts. To remain viable in this market segment, the company needed better margins. Raising price was not a realistic alternative. Beta Consulting visited the client's customers and documented the entire production process. We discovered a cost saving opportunity based on using a different fabric with a proprietary construction. This new fabric eliminated a costly manufacturing step for the customer. Since the proprietary fabric was more valuable to the customer, it was possible to charge more thereby improving margins. The key to this project was finding an opportunity to replace a low margin product with a different product that saved the customer money while improving margins for the client. |
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