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Profit Enhancement Programs Questions to Ask Are your financial ratios acceptable within your peer group? Has your organization changed its pricing or products/services offered? Are prices below competitors' prices? Are there any expenses that appear too high? Has the organization recently expanded through rapid internal growth or merger? Are there opportunities to consolidate or outsource specific functions/activities? Description of Service A structured in-depth approach to identifying practical opportunities to reduce expense and increase income. Benefits Financial benefits of usually twice the cost of one-time fees Improved income and expense controls Improved earnings Improved operating efficiencies Examples A distributor of floor coverings wanted a plan to turnaround sagging sales and decreasing profits. Results -- Both a short-term and long-term profit enhancement plan was developed to include increasing sales volume, narrowing the product line, and changing the mix of products while lowering inventory levels, closing unprofitable distribution centers, and developing expense controls for the headquarters location. Operating expenses were dramatically reduced and the company returned to a profitable state in only 18 months. A regional building supply chain desired a plan to improve profits, build on organizational strengths, and develop a plan to boast declining sales in a highly competitive DIY market. Results -- A profit enhancement program provided a series of actionable items management undertook. Unprofitable ancillary operations were sold for a gain with the proceeds being invested in the core business. Physical appearances and store merchandising were marked improved, while inventory turnover was increased through improved purchasing. All contents Copyright © 1997, 1999, 2000 David Norman & Associates. All Rights Reserved.