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Case StudyThe Directors were frustrated. They worked long hours, delivering excellent products to their customers and were held in high regard by their competitors. They were not, however, making the profits they deserved. They were proud of their ability to respond to the customers and always provide the right product at the right price. They didn’t need to concentrate on sales as people came to them. What should they do? Harris Lacey and Swain became involved, initially making the best use of their accounting systems, to help them analyse and understand the financial aspects of their business. With regular reporting and meetings with us, it became clear that the work they were doing so well was not making enough money to cover their costs. In addition, to ease the pressure on production, they were buying in products and selling them on at a margin they would have laughed at had they made the product themselves. The answer became apparent. Increase prices, change markets, and always try and make the product themselves. They did all three. The results? …better profits and a diversified business, better able to weather economic swings.
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