2010-09-01
Our client was unsure whether all its contracts, despite their high headline revenue, were sufficiently profitable to make them worthwhile.
We analysed every aspect of the business, ‘following’ a car from purchase through to delivery to identify where costs were picked up.
From our analysis, we developed a spreadsheet-based model that gave the gross and net profit per unit for the client’s top 20 deals.
The company got immediate visibility of the main cost drivers on each contract, and is now using the model to price new potential deals.
