CASE STUDY
Develop Clear Financial Strategies
Six-figure annual savings
Clearer financial analysis helped one client identify an inefficient product delivery model, reduce overhead costs, and return to profitability.
The challenge
A client came to Gemsbok with serious profitability concerns. The business was operating at a financial loss, but leadership did not have a clear view of where money was being lost.
Their financials were not organized in a way that made it easy to evaluate revenue, costs, and profitability by product line. Without that visibility, the company could not easily determine which parts of the business were working and which parts were creating unnecessary financial strain.
What changed
Gemsbok helped the client reorganize their financial reporting so leadership could evaluate revenue and costs by product line.
Through that process, Gemsbok identified a major issue in one of the company’s product delivery models. Substantial costs of goods were not being properly accounted for or passed on to the customer. Instead, those costs were being absorbed by the company, creating hundreds of thousands of dollars in annual losses.
Once the issue was clear, Gemsbok helped leadership evaluate practical options for moving the business back toward profitability.
This included:
Growing revenue through increased marketing efforts
Increasing prices to recover indirect costs
Reducing overhead tied to the existing warehouse model
Moving to a drop-ship model to create a more efficient delivery strategy
The outcome
After reviewing the financial impact of each option, the client decided to move away from the warehouse model and shift to a drop-ship delivery strategy.
Gemsbok helped the client take actionable steps to sell the warehouse, reduce staffing needs, and lower overhead costs.
As a result, the company realized six-figure annual savings and returned to profitable operations.