Costing & Pricing Revitalises Business
Renowned and talented designer Heath Nash is a member of the SMME Accelerator ETU Programme, funded by the Embassy of Finland and designed and implemented by Fetola.
A primary challenge in Heath’s business was a lack of systems to accurately cost and price his products, leading to a situation where he was unsure whether he was making a profit, and also creating inconsistencies in his pricing, which caused unhappiness amongst his client base and a lack of reorders.
Heath Nash
Fetola consultant Anton Ressel spent several sessions with Heath implementing costing systems and methodologies. A costing template was tailored to Heath’s needs, training was provided on the correct costing methodology and his entire range of products was recosted from scratch. From this information, the whole product range was assessed for profitability and suitability, and new wholesale, retail and distributor pricelists were developed for Heath Nash. On average, he was able to reduce his prices across all ranges by 22%.
At the same time, productivity training was carried out with Heath’s production staff, keeping them involved in the process and ensuring buy-in.
The new pricelists were then sent out to all past & current clients with an introductory letter written by Heath, explaining the changes and improvements in the business. Response to date has been overwhelmingly positive, and on a personal level this experience has completely altered the way Heath views his business.
“The programme has really changed the way I see myself and my business. With a little bit of business intervention and knowledge, my perspective has changed and I’ve become quite a different businessman, and a much more confident person in the arena of business (and personally). I’ve been running my business for about six years without any real training, and it always made me really insecure and uncertain.” Heath Nash, October 2010
