NEWS RELEASE July 2023
Program to Boost Supplier EBITDA to 30%
Some AWE companies have achieved 30% EBITDA by pursuing a number of small niches. In fact, every purchaser wants a solution. The more tailored a product is to the problem the lower the cost of ownership and the higher the price which can be achieved.
With the Most Profitable Market (MPM) program Mcilvaine is helping suppliers identify the right niches and then pursue them. A three-step approach is offered.
The first step is to provide general reports. Mcilvaine offers many. Valves and Cartridge Filters are two examples.
Based on the general analysis the next step is likely to be a focused report such Hydrogen valves or Industrial Cartridges.
Step 2 involves a niche focus such as cell and gene process filters. The various sub-niches are quantified and then aggregated into niches where the market is at least $10 million/yr. and where 20% market share and 30% EBITDA can be achieved.
The program continues niche by niche until the entire revenue consists of niches yielding 30% EBITDA.
Step 3 is the preparation of value propositions for each sub-niche and niche. Mcilvaine can provide assistance in their preparation plus validation through the AWE Productivity Hub. With the program salesmen have very specific targets and the conduit to the customer.
In terms of cost, the program is targeting $150 increase in EBITDA for each $1000 sales at a cost of only $1 per $1000