Consulting Services That Helped Schiavi Custom Builders


  • Improve Cash Flow

  • Expedite Collection Processes

  • Increase Profits by a Projected $2.5MM*

https://vimeo.com/810678250

Problems Schiavi Faced

Uncertain Future

Schiavi Custom Builders ran successfully for nearly 50 years until the housing crisis and 2008 recession nearly forced them to cease operations.
Scott Stone described the transition of the business as going “from a profitable, proactive, fun place to work” to one that was “stressed-out, reactionary, [and] survival-oriented.”

Complacency

After years of operating the business with a survivalist mindset, Scott fell into a “rut” of which he didn’t “have the fortitude to get [himself] out.”

Reduction in Demand

Demand for cheaper homes skyrocketed post-recession, leaving Schiavi’s higher-end, more expensive homes into a manufacturing limbo.


Solutions We Helped Implement

Fully Burdened Labor Rate

We worked with Schiavi and found $96K in lost billable hours (annual) from employee routines. Our solution was to streamline these routines to reduce wasted time.

Defining True Operating Costs

After determining Schiavi’s true operating cost, we improved their relationship with subcontractors and improved cash flow by about $300K over 12 weeks.

Pre-Determined Profits

With our assistance, Schiavi improved profit by over $2MM by designating a percentage of every dollar of revenue as profit, a move Stone attributes “more than likely saved our company.”

Schiavi Custom Builder’s Results

BlackCircle_CashFlow@3x

Improved Cash Flow

Cash flow improved by about $300K over a 12-week period

Asset-55-150x150

Expedited Collection Process

We decreased the time between Schiavi sends out invoices and gets paid

BlackCircle_ProfitMax@3x

Increased Profits by $2.5MM*

*We helped increase profits by over $2.5MM over a three-year period

In Scott Stone’s Own Words:

My name is Scott Stone. I am the managing partner for the Schiavi Group in Oxford, Maine.

Over the last six months, my team and I have experienced the exhilarating process of putting our company back on track under the guidance and tutelage of American Management Services, Inc, and more specifically, Colin Chin and Mike Lockey. I want to commend you and your company on providing a clear path to developing a Pre-Determined Profit Plan that is both attainable and sustainable. It more than likely saved our company.

Starting in 2008, over the next decade, my company went through a transition from a profitable, proactive, fun place to work, to a stressed-out, reactionary, survival-oriented business plan. We fell into the rut and we simply did not have the fortitude to get ourselves out.

Honestly, it was hell.

Lucky for me I had met Jack Leonardi back in 2004 while our children attended school together. Our paths crossed several times over the years until one day Jack called me to talk about my business. After an hour of me unloading on him, he suggested a way out of my hell hole, quite simply, American Management Services.

After a brutal few days of analysis with David Patterson, we looked over the Business Survey and determined we had a lot of work to do, but Dave had prepared an aggressive yet realistic proposal as to how we could extricate ourselves from the never-ending rut. We accepted the challenge. Your team engaged immediately.

Over the next six months, we worked diligently under the firm guidance of Colin Chin. Right away, our cash flow improved dramatically, both in terms of projecting better and shortening the time between invoicing and collections.

Soon after that, we recognized several issues with our materials supply chain that impacted not only the payment terms but, more importantly, the loss of “billable hours” driving back and forth to the lumber yard. Understanding the associated fully burdened labor costs resulted in adding a Director of Procurement. Even after the additional salary expense, we are saving hundreds of thousands of dollars.

Those are just a few examples of the positive change that Colin helped us realize. In summary, we are projecting increased profits of $2,538,574.00 over the next three years. The services American Management Services provided us were very expensive, BUT, the return on investment is off the hook.

Thank you for helping us save our company. We will enthusiastically recommend American Management Services.

Scott Stone
Schiavi Custom Builders




Scroll to Top