Case study
Case study

Brisbane-based Removals company Enjoys 72.7% Gross Profit Rise

One of our consultants was engaged to produce and execute a new marketing plan for one of Brisbane’s leading furniture removal companies.

He engaged in one of the first stages of the marketing programme: Market and Competitor Research and he learned that the client was charging an hourly rate that was not just better than competitors, but unnecessarily undercutting them without a real awareness of their position in the market.

He proposed an immediate rate increase to a point where the client was still the market’s best-priced large player, but suddenly radically more profitable.

In nearly any market it is often the seller that is the most concerned about a price rise and how it will be perceived by the buyer. So too it was in this case. Senior management took some convincing and was concerned about the impact on their ability to keep sales volume when the price was rising.

A successful test, however, revealed there was very little impact on sales volume. But there was a massive difference in gross profit. 72.7% more, in fact.

The client was very happy with the outcome.


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