How one idea led to £240,000 in extra sales and unlocked serious profit...
Twelve months ago I sat down with the owner of an established protective clothing business.
The business looked healthy. Whilst turnover was steadily growing but the owner was frustrated. Growth always felt slow and cashflow was a seemingly constant worry.
Her entire growth strategy was pinned on one idea: get more customers.
The problem, however, was that the marketing was not bringing in the new customers fast enough. Marketing costs were creeping up and despite working long hours, the financial reward didn’t quite match the effort.
The turning point: was looking at profit, not just sales
As soon as we sat down and stripped the business back to the numbers that mattered – profit by product, not just total sales – something interesting jumped out.
Among all the jackets, trousers, PPE and bundled orders was a small, almost overlooked service: “embroidery only” work.
This was where customers supplied their own garments and the business simply stitched logos onto them. It had always been seen as an add-on – generating “a bit of extra money”.
But the numbers showed that the “embroidery only” service had profit margins nearly twice that of everything else the business sold. Plus, there was less stock to order and hold. And yet, it was the smallest part of the business.
That raised a simple but powerful question:
If this is the most profitable thing we do, why is it treated like an afterthought?
The Plan: Simple, Focused & Practical!
The growth strategy didn’t need to be complicated. In fact, it was deliberately kept simple to make it easy to execute.
Step 1: Reframe the Service
Embroidery only stopped being treated as an add-on and was repositioned as a core service. It had clear pricing, messaging and outcomes.
Step 2: Service Launch
To launch the embroidery only service an email was sent to the ‘list’. Within a week her first new customer for the service had signed up and placed an order. By the end of the month, she couldn’t believe she already had four new customers.
Step 3: Scaling & Pricing
Within a few months the business had over 20 new customers. That meant she now had recurring income, with most customers placing at least one order every month.
The rapid growth showed there was a lot of demand for a good quality and reliable service and hinted the price should be higher. The price was increased by 12% and there was no resistance.
Step 4: Optimizing the Growth
From a marketing perspective, all she had to do was send out a weekly email. Every email typically generated a couple of enquiries and one new customer.
That meant more time could be spent improving and optimising the team, systems and processes which delivered a great service to customers and maximised profit margins for the business.
The Results: Fast & Life-Changing
Within just 90 days, sales of the embroidery only service grew from £1,000 a month to £12,000 a month.
That one shift led to £240,000 in extra sales over the year and £121,000 in additional profit.
More importantly, cash flow improved and growth no longer relied on constantly finding new customers.
Today, the business owner feels in control of her numbers rather than overwhelmed by them. She’s no longer guessing where growth will come from. She knows which parts of the business deserve focus and which ones quietly drain time and energy.
All from one idea…unlocked by looking at the numbers properly.
Key Takeaway
It’s about what happens when you stop chasing sales for the sake of it and start letting numbers and profit lead your decisions.
If you’re working hard but wondering why the rewards don’t quite match the effort, there’s a strong chance the answer is already hidden in your numbers.
One overlooked insight could change everything.
If you want clarity, perspective and practical ideas that put more cash in the bank, now would be a good time for us to discuss what’s possible.
To get in touch you can drop us an email to [email protected] or call one of the team on 0161 410 0020.
Disclaimer
You must take professional advice before making any decisions based on the information that you have learnt here. While every effort has been made, to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavor to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.
