Euran rakennustarvike is a hardware retail company owned by the Helin family. It sells building materials, painting supplies, tools, gardening products and much more in its three stores.
Because of economic recession the company was confronted with economic difficulties. They began investigating how the profitability of their business model can be improved. Financial analysis pointed out three issues that needed improvements:
- customer discount levels compared to competitors were high
- product purchases price did not necessarily affect the sales prices, and
- staff costs were high, especially during the inactive season.
These issues were tackled by introducing new customer discounts politics, product pricing methods, and negotiating with the staff to move their holidays to the inactive season thereby increasing the amount of holiday they take. Our new business model has helped us to change into more business oriented. I am now really focused on making the changes, because I think we have the possibility to make this a really nice company”, managing director Tapani Helin states.