The Hope Group
The Hope Group has been a Parker distributor for nearly 50 years. We were fortunate to be introduced to SPA nearly five years ago through our relationship with Parker. Since then we have committed ourselves to implementing the strategic pricing strategies as developed by SPA, with excellent results.
Six or seven years ago, we consistently operated at the limit of our commercial credit line. We literally wrote checks, put them in a drawer, and then sent them out when cash became available. And our profit margins were only average for our industry. Since implementing the SPA strategies we have successfully paid down our credit line, measurably increased our profit margin and created a substantially stronger company overall – fiscally and otherwise.
Typical for companies in our size range of $40 to $60 million in annual sales, we found that pricing decisions were made randomly and spontaneously and by just about anyone in the company, including sales people in the field. There was no control, no discipline and no process. Now, with the SPA process in place, we increased our margin 19 percent and have doubled our pretax profits despite flat sales. These results are almost exclusively attributable to Strategic Pricing strategies.
The entire process has been very exciting. Increased profits have permitted us to withstand some overall market down-turn and to invest in proactive selling in an increasing competitive market. Without the benefit of the SPA strategies, our future would not be as bright as it is.
Carey Rhoten, CEO