San Diego Postal Newsletter - September 2009

Lost Profit is Found

In a meeting with a large local Vista based manufacturer and distributer of nutritional supplements we discovered that they were using a number of various pieces of mail equipment & software. We were able to determine that it had been a number of years since they had assessed their current situation, and agreed to a comprehensive fact finding. The customer was paying $1, 979 per month for the lease of equipment that was underutilized because it was not appropriate to their current operations. The incumbent supplier responded by attempting to re-lease the same equipment at an even higher monthly payment.

John Hoffman describes what he found. “By taking the time with the customer to walk through each production piece, we were able to see which equipment was required and which was not required. We also determined that there was a need for equipment that they did not currently have which would produce great efficiencies.”

Solution.

 John says , “ The results of the fact finding mission were amazing!”.  Due to a decreased volume of postage,we found that the actual postage machine being used was in fact too large, so we downsized it with the proper replacement. With the savings in this area we were able to upgrade their folder inserter machine. This was sorely needed because of a change in the type of material they were now processing, the old inserter just did not have the capability. They were able to save on outsourcing costs and labor costs as well.  The bottom line was in the end, they were able to upgrade their entire package of equipment and to save money and labor costs at the same time. As a matter of fact, the the new monthly lease payment was reduced, saving $1,463.00 per month and included USPS rate updates. That is a $30,960.00 savings over the next 5 years! The additional savings realized from not having to outsource. Bringing outsourced folding inserting projects in house will save $28,000.00. They will attain a grand savings total over the next 5 years of 58,960.00!! Often times, change pays. This customer realized a return on their investment within 6 months after which the money saved turned into profit helping to reduce their debt.

Do you want to find lost profit in your business?

Why not give us a call or send us an email we would be happy to provide you with an audit at no charge. There is nothing better than “found” money!

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