Recent Experience in Market-Based Profit Improvement

Profit improvement through re-pricing, new services, and value selling for a leading well service firm: Following extensive field research, Hamilton developed a specific and actionable plan to increase annual profits for a major domestic oil field services firm by $10 to $20 million. Major initiatives included: pricing strategy, value-added services creation, operating procedures changes to reduce the cost of serving customers, and a shift to "value selling." Hamilton is currently involved in detailed implementation planning, coaching and educating throughout the organization, and change management efforts to ensure the success of these initiatives. Within a month of the completion of the first phase of the project, the company's CEO acknowledged Hamilton's work as directly contributing to the closing of two major contracts, each valued at $500,000 per month.

Identification of overlooked revenue opportunities for a major machine tools manufacturer: Hamilton interviewed customers, analyzed industry data, and produced a plan to capture $6 million worth of additional revenue over 3 years. This was achieved through in-depth, fact-based analysis resulting in identification of revenue generating opportunities through selective adjustments to pricing, as well as attention to other sources of potential revenue, such as service, and repair parts. In addition to increasing revenues, these efforts will tie cash flows to activities that are less cyclical than the current manufacturing focus. Hamilton shortly expects to be involved in the direction and implementation of these efforts.

Sales force optimization, pricing strategy and customer profitability analysis for a manufacturer of drainage pipe: For a manufacturer of HDPE drainage pipe, Hamilton examined the client's entire sales and marketing operations including customers, products, and sale force. Hamilton also sized regional markets and determined market shares to identify areas with the most potential. In-depth analysis identified opportunities to realign the sales force to best capture market potential, contributing an additional $6 million in variable gross margin. Further, Hamilton identified uncompetitive product offerings and unprofitable customers and recommended re-pricing and pruning strategies that could result in $1.2 million in additional variable gross margin. Hamilton is currently working with the client to implement the strategies recommended to capture the additional margins identified.

Sales force optimization for a refiner of precious metal: For a company that recently entered the dental lab metal refining market, Hamilton examined the client's sales force to determine if current efforts were adequate given the market opportunity. Further, Hamilton analyzed the client's existing customer base to assess the variable lifetime value of customers. The analysis showed that the vast majority of the company's existing customers contributed very little or negative profits. Hamilton recommended a pre-qualification system to focus the sales forces' activity in attracting those customers with the most profit potential. Hamilton also recommended that the company needed more sales representation with a more clearly defined and effective commission structure to steer the sales force towards profitable customers and more robust marketing programs and campaigns to establish the company as a market leader and grow top line revenues.