See the Elephant
Recovering Lost Supplier Savings & Protecting Margin
Palmer’s Strategic Advisors helped to uncovered missed supplier volume discounts and margin-eroding retail costs, creating opportunities to recover cash and improve net contribution margins.

🌶️ FPT · Specialty Hot Sauce Brand
$67,000 Found in a Single Half-Day Session
A two-founder specialty hot sauce brand had scaled from farmers markets to regional grocery distribution over four years. At $1.8M in revenue, they weren’t in crisis. They were profitable. But one founder had a nagging feeling that something was off. They weren’t ready for an ongoing relationship — they just wanted someone to look under the hood.
FPT
Engagement Type
Half-Day
What We Found
| Layer | Finding | Impact |
|---|---|---|
| L1 — COGS | Pepper mash supplier: volume tier crossed 14 months ago — never renegotiated. Retroactive credit secured. | +$31K/yr |
| L1 — COGS | Glass bottle supplier: competitor quote used as leverage — new rate secured on 3-month review cycle | +$9.5K/yr |
| L4 — Pricing | Regional grocery SKU #2: net contribution negative after scan allowance + ad fees. Terms renegotiated. | +$18K/yr |
| L2 — Overhead | Shared kitchen lease: usage tracking showed brand was over-allocated vs. actual hours | +$8.4K/yr |
The Situation
Profitable — and Still Leaving $67,000 on the Table.
The biggest finding came in the first 20 minutes: their pepper mash supplier had a volume pricing schedule that kicked in at a threshold the brand had crossed 14 months earlier. No one had noticed. No one had asked. The supplier had simply continued billing at the prior rate.
The supplier also agreed to a retroactive credit for 14 months of overbilling — a one-time cash recovery of approximately $36,000 that the founders used to retire a short-term equipment loan early.
Both founders described the FPT as the most valuable four hours they had spent on the business in three years. They subsequently enrolled in a quarterly Advisory retainer.
"We thought we were doing okay. Turns out 'okay' was costing us $67,000 a year. The FPT paid for itself in the first conversation."
Key Lesson
You don't need to be in financial distress to benefit from a structured financial diagnostic. This brand was profitable and growing — and still had $67,000 in recoverable margin sitting in plain sight. The FPT is designed for exactly this founder.
Does this sound like your business?
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