How a £850k Business Was Turned Around by Fixing The Stock Problem
Tony and Kate are the owners of a family-run business that has been remanufacturing printer cartridges for several years.
Their £850,000 turnover business was doing well in many ways—but there was a problem. A big one – a lack of cash.
The company had an extensive range of printer cartridges in stock across two warehouses.
But this stock wasn’t just sitting there—it was tying up valuable cash that Tony and Kate desperately needed to grow their business.
And the more they tried to keep up with customer demand, the more stock they seemed to accumulate.
The Problem: Too Much Stock Due to Customer Service
It wasn’t that they weren’t trying hard enough. In fact, their commitment to customer service was the reason that led to this situation.
They had a “next day delivery” promise for any customer order placed by 2pm, and they stocked as many different types of cartridges as possible, even ones for printers that were no longer in production.
The aim was simple: never let a customer down for any reason.
But in trying to do this, they had inadvertently created a mountain of stock and, with it, a cash flow nightmare.
Something had to change.
The Plan: Simplifying to Succeed
To help Tony and Kate regain control, we started with a review of their stock levels, delivery promises, and product range.
The solution came down to three simple yet impactful steps:
- Revised the Delivery Promise: We kept the “next day delivery” promise only for their best customers (rather than anyone placing an order), allowing the company to focus its energy and resources on high-value clients. For others, the delivery promise was removed unless they were willing to pay a premium.
- Reduced the Product Range: We worked with Tony and Kate to carefully identify their main product lines—those that were in constant demand—and discontinued everything else. Out went the 10-year-old printer cartridges and other niche stock, which was either sold off or simply not replaced when sold.
- Ongoing Stock Reviews: To keep things, lean and efficient, we put a quarterly review process in place. This ensured that the product range stayed current, and stock levels didn’t creep back up.
The Results: Cash Flow Boost, Reduced Overheads, and More Profit
The results came fast. First, stock levels stopped rising. Purchases slowed, and as obsolete stock was sold off, cash started flowing back into the business.
Even better, the business was able to shut down its second warehouse, saving £11,000 a year on rent and rates.
And with a streamlined product range, Tony and Kate found their remanufacturing process became more efficient—allowing them to reduce staff costs by £30,000 a year.
Ready to Transform Your Business?
If you’re ready to take control of your stock, boost your cash flow, and start working smarter—not harder—let’s have a conversation.
We’ll create a tailored plan to help you unlock your business’s full potential and see real results.
To get in touch send an email to [email protected] or call us on 0161 410 0020.
