Opportunity/Problem Statement

Revenue was stagnant, demand for top donors far outpaced production, and over time ‘low demand’ donors continued to build a backlog of inventory where there was virtually no demand in the US market.  Historical pricing schema was fixed on acquisition and selling prices, leading to backlogs, misaligned incentives, and frustration on all parties.

Action Taken

Created both a supply and demand model for new and historical donors, allowing the company to move away from a historical fixed price system.  Developed a tiering system for price of the donor’s product and supply controls.  

This allowed the client to lower the market prices on less desirable donors and increase market transfers outside of the US.  Removing a significant amount of unsellable goods in the US market and bolstering Central American efforts.

Created a supply ‘acquisition’ and forecasting tool to assess a prospects demand. This tool advised compensation metrics for individual donors, allowing for marketing outside of traditional avenues through increased compensation.

Benefits

• Reduced backlog inventory by 40%, pushing product and price into new markets where lower tiered donors had viability, leading to $3 mm in sales for the first 12 months.
• Acquisition costs increased by 21% but lowered waiting list times by over 60%, allowed for a price expansion of nearly 45%between the top two tiers of donors.
•  New list prices on donors led to an overall margin expansion of 12.7% and in the first 12 months, total revenue increased by $5.3 mm
• Outside of financial metrics, allowed an additional 600 couples start their families above historical rates
• ROI exceeded 15X in the first year alone

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