Client Background: Brittani, a compassionate and heart-centered entrepreneur and mom of four, created Fashion Pact in Anchorage, Alaska, with a mission to make a positive impact in her community. Fashion Pact allows local residents to donate clothes, which are then sold, with a percentage of the proceeds donated to a charity of the donor’s choice. Despite her passion, Brittani faced significant challenges in growing her local business and increasing profits. When she first connected with Jennifer, her business was operating at a loss, with profits in the negative double digits.
The Challenge: Brittani’s business was losing money at an alarming rate. Her cost structure was inefficient, pricing strategies were not hitting the mark, and the piles of donations were an operational nightmare for her and her staff. Brittani was determined to make Fashion Pact a success, but she needed guidance to optimize her business model and find a path to profitability.
The Solution: Jennifer and Brittani collaborated closely to develop a comprehensive strategy to grow Fashion Pact and achieve a remarkable 131% increase in net profit within just six months. The plan focused on four key areas:
- Optimized Business Model: Jennifer guided Brittani in a thorough analysis of Fashion Pact’s cost structure. They identified unnecessary expenses and areas where costs could be reduced without compromising quality. By decreasing the Cost of Goods Sold (COGS), they were able to increase profitability, putting more money back into the business. This strategic move was crucial in learning how to increase profits effectively.
- Revamped Pricing Strategy: To further grow the local business, Jennifer and Brittani adjusted the pricing model. They ensured that the prices of individual items better reflected their value, which led to increased sales and higher profit margins while still being of tremendous value to the shopper. This pricing adjustment was key in driving the 131% increase in net profit.
- Implemented Standard Operating Procedures (SOPs): To reduce labor costs and increase efficiency, Jennifer helped Brittani implement Standard Operating Procedures (SOPs) and hire a Manager for the retail locations to take some of the weight off Brittani’s shoulders. These streamlined operations allow their team to get through the piles of donations at a faster rate and create a shopping environment for the customers to enjoy.
- Organic Marketing Success: Understanding the importance of marketing in growing a local business, Jennifer designed a non-paid marketing campaign tailored to attract Fashion Pact’s ideal clients—those interested in fashion and supporting local charities. This organic marketing approach significantly increased customer engagement without the need for expensive paid ads, contributing to the overall growth of the business.
The Result: Thanks to the strategic efforts of optimizing the business model, revamping the pricing strategy, implementing SOPs, and launching an organic marketing campaign, Brittani achieved a 131% increase in net profit in just six months. Fashion Pact transformed from a struggling local business into a thriving community asset, demonstrating that with the right strategies, it is possible to grow your local business and significantly increase profits. Brittani’s success story is a powerful example for entrepreneurs looking to make a meaningful impact in their communities while achieving financial success.
Another critical attribute of Brittani’s success was her coachability. Brittani embraced Jennifer’s suggestions and was eager to test them out and implement them in a timely fashion.
Brittani is just getting started. She is excited to continue to grow her Anchorage locations and share this business model with others who want to positively impact their local communities as well.
Well Done Brittani! Your growth is beyond impressive.
If you want to grow your profits, email Jen@nexwavebusinesscoaching.com to schedule a complimentary call to see if working together is the solution you need. Learn more here
