What Would You Do to Improve Your Margins?
Here is how one company tackled the problem head-on…
These days, margins are under pressure from all sides. Customers demand more for less, a tightening job market signals rising wages, and, except for energy, it seems like the cost of everything is inching up as the economy improves. One company, New York Ortho, came up with an innovative approach to improving margins. Here’s how they did it.
Improving Margins
NYOrtho has been manufacturing effective safety, positioning, and pressure relief products for use in the wheelchair or bed as well as ergonomic / rehabilitative products designed to support the musculoskeletal frame for over 17 years. Designed for nursing homes, hospitals, rehabilitation facilities, and home care settings, NYOrtho products assist doctors, nurses, and therapists in providing quality care.
During this time, NYOrtho has outgrown their Peachtree Quantum system that only supports 10 pricelists which had to be overridden in many cases. Worse, there was no way to really know the cost of a particular order so there was no way to be certain that the price offered yielded an adequate margin.
Problem Solved
To solve this problem, NYOrtho reached out to PC Ware to develop a system that integrated their raw material cost data and orders so they could calculate the profitability of each transaction. PC Ware programmed a Microsoft Access database to connect with Sage 300 to provide the answers the company needed. Now NYOrtho staff can enter a sales order number and immediately see the profitability of a sale.
A Game Changer – Get the Right Team
CEO Michael Rozenberg says, “This is going to be a game changer for us. It will allow us to monitor our profitability and increase margins.”
Mr. Rozenberg contacted Zev at PC Ware because they were a local Sage Partner he could meet with in person. “I’ve learned through experience that choosing the right team to do the implementation is more important than choosing the software. I could tell right away when I met Zev that he knew what he was talking about. And I turned out to be right. They are thorough, work hard, figure out a solution and make it happen. They understand the way real life business systems work and understand what you want to accomplish sometimes better than you. They thought things through to the end. It had been my experience working with others that they think only about two or three steps ahead, hit a wall and have to go back and start from the beginning. This wastes valuable time and money. In contrast, PC Ware thinks the problem all the way through to the end before they start.
What About You?
If you’re looking to fatten your bottom line, call Zev at 845 371-1975 for a free consultation so the PC Ware team can do for your business what they did for NYOrtho.
