Cashcow CFOs instated a dynamic pricing model at a manufacturing client, through cost accounting techniques and expense management which empowered the sales team to instantly close deals and ensure budgeted profit margins
Financial transaction process optimisation | Forecasts & Budgeting Product Cost Analysis | Cost containment & Expense Management
Industry : Printing & Packaging
Sub Industry : Offset Printed Packaging solutions
- Accurate product pricing
- Confidence of profit margins
- Empowered the sales team for better sales negotiation & closure
Cashcow CFO Services
- Financial transaction process optimisation
- Forecasts & Budgeting
- Product Cost Analysis
- Cost containment & Expense Management
The client was operating with a conventional cost sheet (fixed costing structure) for past several years. As the company grew the costing structure became complex and went beyond the skillset of the accounting staff to include all the relevant costs. Due to this the product cost was far away from being realistic and dynamic. Also, the sales team took at least a couple of days to give final quotes to prospective clients during the negotiation phase as they were unaware of the discounts that could be offered.
Our Approach :
- Set-up of processes and their integration with systems to ensure that all the costs being incurred in the organisation are captured with accuracy and all relevant details.
- Implemented proper inventory control procedures and materials handling practices to better safeguard and track inventory from manufacturing to distribution worldwide.
- To supplement daily implementation and execution by providing ground support, Cashcow provided the CFO with an assistant staff cum controller.
- Streamlined monthly closing process and budget review meetings that assisted the company in obtaining and utilizing accurate, timely financial reporting.
- Developed and implemented a dynamic pricing model through above efforts and other measures.
The dynamic pricing model gave accurate costing for a sales order, marked it up with the budgeted margins and also provided discount thresholds which could be offered. It also accounted for any historical deviations from the budgeted targets. This enabled the sales personnel to negotiate better with clients and close sales instantly.