The largest manufacturer of engineering machine tools in the world was perceived as expensive in a particular market sector, so sales were relatively poor. The reality was that their pricing was competitive and had not changed in 12 years, while their competitors’ had.
While carrying out the relationship building activities ITL discovered there was little knowledge or understanding within that marketplace of the other services the manufacturer could offer. They fed this insight back to the manufacturer, and during their customer and prospect conversations ITL started to introduce new products, uncovered cross selling opportunities and introduced new leasing arrangements.
The project with ITL was extended to a year.
Over the twelve months the manufacturer spent £30,000 with ITL. The manufacturer told ITL that as a direct result of their help business was secured worth £500,000 at a 25% margin, and that they were sure that they wouldn’t have had this without ITL’s help.
- You do the sums.
25% of £500k = £125,000 of clear profit, four times the investment in a year.
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