Cost/Billing Review Results in Profitable Sales

Situation

A large high profile Special Events company, producing over 200 events a year, was losing money on almost every event.  The event costs exceeded the customer billing. Many events were in the red.

Problem

The company was losing money on almost every event even with gross income of over 2 million dollars.

Solution

We reviewed overall costs for events.  This included setting guidelines for staffing numbers, establishing standards for food quantities served, accurate food cost, and competitive vendor selection.  We set up a software system to tract all costs including the cost of décor, tents and any other add-ons, etc.  We worked with the sales staff to train them on the implementation of this costing system.

Benefits

Once we implemented this event pricing policy (so all costs were included in event pricing and billing) net profits rose over 400%.  All events became profit centers, increasing margins while reducing operational costs.

For additional information contact Joy C. Shefter at joy@miljoyent.com.