How Greg Turned a $25M Business Around with a Bold Brand Strategy and Smart Product Innovation

Greg’s business had been supplying the residential construction industry for years, riding a wave of consistent growth by constantly expanding its product range. But while revenue was climbing, profitable growth remained just out of reach. Here’s why:  

1. Cash was tied up in rising inventory levels. 

1. Sales and Marketing teams were spread thin, trying to sell more products without a clear focus. 

1. Overheads for marketing and sales were steadily increasing. 

2. The sheer operational complexity—over 5,000 SKUs—was becoming a massive headache. 

Greg had built a sizable business, but profit margins stubbornly stayed below 10% EBITDA. He had hit a wall. This is where his story is a perfect example of what we call a proliferation strategy. It can help a business reach key milestones (like $5M or $10M), but it doesn’t always scale well when it comes to expanding profit margins. Greg needed a new way forward. 

Enter the Breakthrough: Product & Sales Analysis   

After conducting a deep dive into Greg’s product lineup, sales, and gross profit margins, some surprising insights emerged: 

1. Four out of five product categories were performing below Greg’s average GP% (around 40%). 

1. These categories faced stiff competition from global, market-leading brands—some of which were household names.

1. The distributors of these global brands had deep pockets, making every sales order a tough battle. 

1. Greg’s brands, though solid in quality and customer service, were always in a price fighter position, struggling to compete. 

However, one category stood out and offered Greg a real opportunity to pivot: 

1. Weak Competition: The largest competitor in this category was a long-established local player with an aging owner, a massive product range, and minimal marketing efforts. 
2. High Profitability: Although this category accounted for less than 10% of revenue, the margins were exceptional—over 60%. 
3. Low Barriers to Entry: The products were easy to source globally and were compact, making them simple to warehouse and ship. 
4. On Trend: After years of prime-time renovation TV shows, the demand for “luxury” in home builds and renovations was surging. 

Greg saw an opportunity to disrupt the market, and that’s where our team at SSG came in to help him develop a fresh vision and strategy. 

The Vision: Making Luxe Affordable   

The goal: In three years, this product category would represent 25% of total gross profit, boosting overall margins by 10 percentage points. 

The 4 Pillars of Success: 

1. Premium Positioning: Working with Greg’s team, we analyzed construction industry data and discovered a lucrative white space in the high-end market. We positioned Greg’s brand to stand out by focusing on the luxury segment, which had been largely ignored. The branding effort emphasized quality and exclusivity, captivating the market’s imagination. 
   
2. Innovative, High-Quality Products: We worked with Greg’s team to clearly define product ranges for large-scale and luxury projects, avoiding confusion about what qualified as true luxury. Each new product was required to meet strict gross profit margin goals without sacrificing quality. In fact, we sourced the finest products from around the world and worked with Australian designers to ensure they resonated with the local market. The result? A product range that combined durability, aesthetics, and high margins. 
3. Shout the Brand Story: Greg’s business had always been known within the trades sector, but now it was time to build a brand story that engaged architects, designers, and homeowners. This required a massive shift in marketing strategy—one that leveraged emotion and brand appeal. We rolled out an aggressive marketing campaign that built awareness, created brand followers, and ultimately drove sales. It worked: Greg’s brand was no longer seen as an underdog, but as a premium player in the market. 
4. Get the Product into the Right Hands: Luxury car brands know that a test drive is essential to closing a sale—feeling the comfort, the craftsmanship, and the quality can make all the difference. Greg’s team applied this concept by launching highly creative product sampling campaigns. We showcased the products one-on-one and at mass events, and the response was beyond expectations. People loved getting their hands on the high-quality products, which led to impressive conversions.  

The Results: A Total Transformation 

Within two years, Greg’s business had undergone a complete turnaround: 

• Consistent sales growth in high-margin, differentiated products. 

• Gross profit margin jumped from 40% to 50%. 
• EBITDA rose from the low single digits to a consistent mid-teens percentage. 

This transformation proves that with the right brand positioning, a focus on high-quality products, and an engaging marketing strategy, even a complex and competitive industry like construction can be disrupted. And Greg’s story isn’t just an anomaly—it’s a playbook for anyone looking to take their business to the next level. 

In an industry where challenges are constant and change is slow, Greg’s story is a reminder that thinking differently can completely shift the game. It’s proof that with the right strategy, you can go from stuck in the weeds to leading the pack. 

So, if you’re ready to shake things up and elevate your business, maybe it’s time to rethink your strategy, too. We’d love to help you get there.