Case Study
Gray Gardens
Beirut, OhioResearch & Insight, Business Valuation, Supply Chain Management & Logistics, Cost Rationalization, Digitization & Dynamic Pricing
Gray Garden is a boutique specializing in architectural and sculptural planters, with production studios located in both Lebanon and the United States.
Audit
Facing challenges in a hyper-inflating and multi-currency economy, Gray Garden sought Cousins' expertise for valuation, financial reporting, and C-level strategic advisory services. Additionally, as part of its growth plan and expansion into the American market, Gray Garden enlisted Cousins' assistance in restructuring the supply chain, increasing outputs, optimizing costs, and implementing a dynamic pricing strategy within an overarching digital transformation plan.
Setup
Building upon the audit findings, Cousins assigned a dedicated partner to the account and curated a team of experts from their network.
Partner
Victor Ayache,
Managing Director and Consultant at Cousins
Team
Samir Assaf (Consultant)
Joelle Rizkallah (Analyst, Junior)
Zeina Nassar (Product Designer, Production Manager)
Collaborators
Alain Khoury (Logistics, Production),
Managing Partner at A.S.L —Air Sea Land
Anna Ogden-Smith (Strategy, Design, Digital)
Director at Bananamonkey.
Workshop Outcomes
During the workshops conducted by Cousins, the following outcomes were achieved:
01/ Valuation and Financial Reporting
Cousins led the effort to consolidate financial numbers from both the Beirut and Ohio markets. This involved navigating the complexities of a hyper-inflating economy and multiple currencies. By streamlining and harmonizing financial data, Cousins provided Gray Garden with a comprehensive view of their financial performance and position.
02/ Production Strategy
Through strategic negotiations, Cousins proposed a production strategy based on marginal cost rather than partnerships based on a percentage of profits. This innovative approach allowed Gray Garden to significantly reduce their cost of goods sold (COGS) by an average of 200%. By focusing on marginal cost, Gray Garden could optimize their production processes and improve overall profitability.
03/ Dynamic Pricing Strategy
Cousins outlined a dynamic pricing strategy for Gray Garden. This strategy leveraged data extracted from digitized commerce and transaction records, enabling Gray Garden to set prices based on real-time market dynamics. By moving away from fixed pricing and adopting a normative distribution approach, Gray Garden could better align their prices with market demand and achieve a competitive edge.
Results
As a result of the workshops and the implementation of the recommendations provided by Cousins, Gray Garden experienced significant improvements in their business operations:
01/ Enhanced Financial Insights
Gray Garden gained a comprehensive understanding of their financial performance, enabling them to make informed decisions and develop effective strategies.
02/ Cost Optimization
By adopting a production strategy based on marginal cost, Gray Garden achieved substantial reductions in their COGS, leading to improved profitability and operational efficiency.
03/ Competitive Pricing
The implementation of a dynamic pricing strategy allowed Gray Garden to adjust their prices in real-time, ensuring competitiveness in the market and maximizing revenue potential.
The collaboration between Cousins and Gray Garden exemplifies the power of strategic consultancy in overcoming complex economic challenges and driving sustainable growth.
By leveraging Cousins' expertise in valuation, financial reporting, and strategic planning, Gray Garden was able to thrive in a challenging business environment while positioning themselves for long-term success.