Cigarette retailer with multiple locations in one state.
Client Needs:
Location break-even analysis
Identify locations below break-even
Increase profits from the millions already earning
Our Approach
Summary & Strategies we implemented
Most systems were in place and operating smoothly; however, there wasn’t a mechanism to identify how well each store location was conducting on a financial basis individually. The company was already financially strong earning a net income of over $3 million per year, but the owners wanted to know if there were ways that they could still improve upon and increase their wealth even further. We came in and conducted a location by location or job costing analysis and identified the best and worst of their stores. Our conclusion came to closing a certain location to increase the overall income of the company. The owners closed it, and within 6 months the revenue jumped by over a million more in net income. This location was costing more than the store itself could bring in.
Cost Analysis
Visting each location and performing a detailed cost analysis
Analytic Comparison
After data analysis, we determined the best and worst performing stores.
Strategies Implemented
Our recommendation was to close an underperforming location. Within 6 months of close, revenue jumped by over a million in net income.
