PRAESTAR CONSULTING CAN HELP INCREASE DIVERSIFICATION OF CUSTOMER BASE
Who:A Leading Manufacturer of Wire Harnesses and Custom Cables
Problem:The Firm had organically grown sales over its 30+ year history. In doing so, one local large manufacturer had become their largest customer, enjoying 70% of their annual sales. The Firm identified this as a significant risk and sought to broaden its customer base.
Solution:Praestar first analyzed current and historic sales to identify strengths and weaknesses of the Firm’s marketing and sales capabilities. Praestar immediately identified several opportunities to expand current customer relationships to decrease reliance on the primary customer. Praestar then conducted some marketing research and identified several industries (and target customers within those industries) where the Firm’s strengths would be very attractive to the customers. Praestar interviewed, selected, and negotiated agreements with several independent representative firms that sold to those markets on behalf of the Firm. Praestar coached the Firm on dealing with independent representatives since they had no experience with this sales channel.
Benefits:The Firm experienced significant sales growth through new and existing channels. The goal that no customer held a majority share of sales was achieved. The Firm experienced significant growth during this period.