Iron Products Success Story
The challenge
Our European entrepreneur client, specializing in iron product sales with an estimated annual revenue of one million, faced pricing challenges with their supplier. These pricing issues were eating into profit margins, making it difficult to grow their business. They reached out to us to refine their sourcing strategies, improve profit margins, and strengthen their market position by optimizing costs and enhancing product quality.
Our Solution
Our sourcing team extensively searched suppliers throughout Europe, evaluating each for quality and pricing alignment with the client’s requirements. Within 16 hours of research and negotiations, we found a new supplier who not only provided superior quality but also offered better prices compared to our client’s previous supplier. Here’s a breakdown:
Previous Supplier Price:
- 20mm: 10.40€/1000
- 25mm: 11.52€/1000
- 30mm: 11.20€/1000
- 40mm: 14.32€/1000
- 50mm: 16.00€/1000
New Supplier Price:
- 20mm: 8.80€/1000
- 25mm: 9.00€/1000
- 30mm: 9.80€/1000
- 40mm: 14.40€/1000
- 50mm: 16.20€/1000
The Result
With the new supplier, the client was able to reduce their procurement costs while maintaining product quality. They also experienced a notable improvement in profit margins. The decision to partner with us and explore alternative suppliers has proven to be a turning point for their business, expanding their product line, and fueling further growth.