Case Studies
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Case Studies |
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Sell the Razor and the Blade The client is a start-up company with a patented resin dispensing system. The system has economic and environmental benefits and is sold to manufacturers of large fiberglass vessels. Press releases had produced favorable coverage in trade magazines. A stream of inquiries soon followed. However, initial sales were slow. Most potential customers insisted on trial periods before committing to volume purchases. Cash flow became critical, and additional revenue was urgently needed. Market research uncovered an opportunity to generate additional revenue from units already sold. Customers were not satisfied buying resin material from current sources. The quantities were not matched to their needs, deliveries too long, and packaging was not well suited to the new equipment. In response to this opportunity, the company quickly developed clever and convenient packaging for the resin materials. Package quantities were matched to production requirements. Quick delivery service was also provided. Using its buying power the company maintained a good stock of resin with little inventory investment. The net result was greatly improved cash flow that enabled the company accelerate its equipment marketing efforts. Necessity drove this project. It succeeded because the combined product/service filled a genuine customer need for a total system - dispensing equipment plus resin material packaged conveniently with quantities matched to production requirements. Resin sales will provide growing revenue as the installed equipment base builds. In addition, resin sales will cushion the capital goods cycle. |
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