Via Forbes
"I was the CFO of a heating, ventilation, air conditioning and refrigeration (HVACR) wholesale distribution company in a large metro area for over seven years. One of my biggest goals was finding ways to grow the business and expand into new territories without investing a lot of additional capital (because we didn’t have it). Then one day it occurred to us that the metro had two stores within 15 minutes of each other. We thought, “What would happen if we closed one of those stores?”
The idea of closing a profitable store seemed crazy, but the team and I believed it would save resources that we could invest in a new territory. We also felt that we could retain our existing customers by offering free delivery for one year. So we closed one of the metro stores and opened a store in a new territory. In the first year, the new store made over $2 million in profits, and we didn’t lose significant business from the closed location."
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