Over 10 years we help companies reach their financial and branding goals. Maxbizz is a values-driven consulting agency dedicated.

Gallery

Contact

+1-800-456-478-23

411 University St, Seattle

maxbizz@mail.com

Resolving Financial Instability with a $1.5 Million Revenue Enhancement

Background: A renowned bakery, a cornerstone of their community since 1975, faced a critical juncture in their long-standing partnership with a major national fast-casual food chain. Despite decades of successful collaboration, declining project volumes, unfavorable pricing terms, and a loss of trust jeopardized their financial stability.

Challenges

  • Key product exits and reduced volumes created significant revenue shortfalls.
  • An imbalanced master purchase agreement (MPA) placed unsustainable pressure on the client.
  • Leadership changes and unclear strategic direction eroded trust, leaving the client at a crossroads. Mounting financial pressures demanded swift evaluation and decisive action to stabilize the partnership.

The J. Gardner Group Solution: A Strategic Reset, Not a Band-Aid: J. Gardner Group (JGG) came into the picture and explored a wide range of negotiation strategies with the client. After careful consideration, we didn’t just offer a quick fix. We embarked on a comprehensive “relationship reset”, a strategic intervention designed to rebuild the foundation of the partnership and secure the supplier’s long-term viability. Our actions included:

  • Reinforcing the Partnership: Reestablishing trust and transparent communication as the foundation for collaboration.
  • Revising the Contract: Renegotiated the MPA to address concerns such as prohibitions on selling to competitors, financial transparency, year-over-year savings, bureaucracy reduction, cost flexibility, and payment terms that protected the supplier’s interests and provided greater flexibility.
  • Restructuring Pricing: Adjusting pricing to align with recent volume changes and restore financial viability.
  • Strategic Negotiation Preparation: Equipping the client with robust financial analysis, a compelling narrative, and a clear negotiation roadmap.

 

The Outcome: A $1.5 Million Transformation, and a Renewed Partnership

The results speak for themselves:

  • $1.5 Million Annualized Price Increase: This critical adjustment ensured the account returned to a healthy margin.
  • Trust Rebuilt: Strengthened transparency and collaboration between the client and buyer, paving the way for sustained growth.
  • Operational Stability: Restored financial health, enabling the client to focus on long-term strategy and innovation.