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Stone-Cutting Factory carves out a Profitable Future

We helped a stone-cutting and sculpting factory unlock its potential and build a profitable future.

Sectors : Real Estate and Construction
Services :

Goals

Goals

We were hired to stop the business slow down and melting margins, and do the necessary to build a profitable future.

Situation

Situation

The company’s management had no real understanding why turnover had suddenly dropped year on year.

Analysis

Analysis

The factory had exceptionally-gifted craftsmen who produced works of arts. However, the same craftsmen were wasting a lot of time and effort to mass produce the less-demanding items, which led to lengthy lead times and delays of deliveries.
The company’s manager was very hands-on and lacked proper marketing and prospecting skills. The owner relied on personal connections, word of mouth and repeat business to generate revenues and took on every kind of projects whether or not they made the best use of the company’s excellent artistic skills.

Actions

Actions

  • Provided cost/benefit studies that demonstrated the benefits of introducing the latest laser stone-cutting technologies with the aim of mass producing replicas of generic items that required no artistic skills.
  • Quantified the expected gains to be made by developing a formal sales and marketing department that aimed to create sales leads from intermediaries like interior designers, architects and contractors.
  • Developed a roadmap that capitalizes on the company’s craftsmanship to build brand awareness, preference and distinguished positioning.
  • Proposed a pragmatic plan to export products to the Arab World and Europe.
  • Proved that with a better factory layout and usage of space, storage and showroom facilities would lower costs and impact appearance and perception about the company, and sales as a result.
  • Recommended a new costing system taking into consideration the impact of automated stone-cutting machinery on production costs.
  • Developed a financial plan (capital investment, working capital needs and cash flow) that proved to be attractive for a bank to advance a loan of AED 925,000.