Bat Club USA
Their Pain Point:
While the company was generating millions of dollars in revenue and had a product that was converting, their cashflow was an issue and their cost per acquisition was believed to be the culprit.
Our Solution:
Create an all new type of product that systematically avoids the pitfalls in their current business model.
New membership options
to gain greater member base
Profitability reached
in < 4 months
Financing opportunities gained
for continued growth
The Breakdown
Step 1: Audit Current Revenue Streams
When we assessed the business, we noticed a few potential pitfalls in the business model.
1. The COGs were fairly high on each bat
2. The cash conversion cycle was long
3. An issue with potential theft of high end bats.
After this assessment, we launched an entirely new product that was a paid in full membership option where the full price of the bat was met at first purchase solving for all 3 problems. COGs were covered on new acqusition, cash was immediately infused into the business quickly and the cost of the new bats were covered in initial transaction, so in those cases the business wasn’t at a loss.
Step 2: ReprioritIze Ads and Spend
The previous agency the client used was running up ad spend to reach payment thresholds for greater profits (for them) and performance was beyond subpar.
We reorganized spend and focused on MER numbers that would be profitable for the brand and NCPA that could be supported by cashflows.
RESULTS:
The client was able to track to profitability in less then 4 months and submit for new financing for growth. This lowered interest rates on outstanding financing and moved the company into position for accelerated growth.
With improved profit, cashflow and acquisition costs, the client is now capable of scaling aggressively and adding new membership options to gain greater member base.
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