We read twelve months of Harlow & Pine's books and found five places where cash and margin are slipping. Each finding is sized in dollars per year and backed by the transactions behind it. Start with the two largest: supplier pricing and four low-margin customers.
Summary of findings
Per year| Finding | What we saw | Recoverable |
|---|---|---|
| LeakSupplier price creep | 6 vendors up 9–17% since 2023, never renegotiated | $61,200 |
| MarginLow-margin customers | 4 accounts below 8% gross margin | $52,300 |
| LeakSoftware overlap and idle seats | 23 subscriptions, 41 seats unused for 90 days | $38,900 |
| LeakCard and freight spend with no owner | 312 charges uncoded or coded to "Misc" | $32,400 |
| CashEarly-pay discounts not taken | 2/10 net 30 terms paid on day 41 | $27,600 |
| Total recoverable | $212,400 |
Every finding with its backup. Open one to see the vendors, accounts and transactions behind the number, and what we'd do first.
LeakSupplier price creepSix suppliers raised unit prices since 2023 and none were renegotiated.$61,200
| Vendor | Main item | Increase since 2023 | Annual impact |
|---|---|---|---|
| Delmar Packaging | Corrugated cartons | +14% | $18,600 |
| Ridgeline Steel | Strapping | +9% | $12,400 |
| Coastline Freight | LTL freight | +11% | $9,800 |
| Summit Fasteners | Fasteners | +17% | $8,700 |
| Northway Pallet | Pallets | +12% | $6,500 |
| Bright Label Co. | Labels | +10% | $5,200 |
| Total | $61,200 |
Annual impact is the price increase above inflation multiplied by FY2025 volume. Delmar alone is 30% of the total.
MarginLow-margin customersFour accounts earn under 8% gross margin after freight and rush orders.$52,300
The full customer analysis is on the Customer margin tab. The recoverable figure is the freight, rush and small-order costs Harlow & Pine absorbs for these four accounts that its other customers pay for.
LeakSoftware overlap and idle seats23 subscriptions, several doing the same job, and 41 seats with no login in 90 days.$38,900
| Category | Detail | Annual cost |
|---|---|---|
| Idle seats | 41 seats across 9 tools, no login in 90+ days | $19,700 |
| Overlapping tools | Two video tools, two file-sharing services, two project trackers | $14,600 |
| Forgotten renewals | 3 annual plans for tools no one has opened this year | $4,600 |
| Total | $38,900 |
LeakCard and freight spend with no owner312 charges were uncoded or coded to "Miscellaneous." Some of it shouldn't have been paid.$32,400
| Date | Vendor | Issue | Amount |
|---|---|---|---|
| Mar 4 / Mar 19 | Coastline Freight | Same invoice paid twice, by check and by card | $8,140 |
| Throughout year | Various carriers | Rush shipping outside policy, not billed to customers | $12,400 |
| Throughout year | Card charges | Charges with no receipt or business purpose recorded | $11,860 |
| Total | $32,400 |
CashEarly-pay discounts not takenSuppliers offer 2% off for paying within 10 days. Harlow & Pine pays on day 41 on average.$27,600
| Item | Amount |
|---|---|
| Payables with 2/10 net 30 terms, FY2025 | $1,380,000 |
| Discount available | × 2% |
| Discount not taken | $27,600 |
Paying 20 days early to save 2% works out to roughly a 37% annual return on that cash, far above the cost of the credit line.
Harlow & Pine's largest customer by revenue ranks 31st of 40 by gross margin. Four accounts fall below 8% once freight, rush orders and returns are counted. The rest of the book averages 31%.
Customers below 8% gross margin
FY2025| Customer | Revenue | Gross margin | Main cause | Recoverable |
|---|---|---|---|---|
| Brightwater Hospitality | $1,420,000 | 6.2% | Free freight on small, frequent orders | $21,300 |
| Corbin Builders | $610,000 | 5.1% | Rush orders billed at standard price | $13,700 |
| Lakeshore Facilities | $480,000 | 7.4% | 2022 pricing never updated | $9,900 |
| Tri-County Schools | $395,000 | 7.8% | High return rate, restocking not charged | $7,400 |
| Total | $2,905,000 | $52,300 |
Customers take 58 days to pay on net-30 terms, and three accounts hold $284,000 more than 30 days past due. Cash dips close to the credit-line floor in week 9 of the next quarter.
Past-due receivables
30+ days late| Customer | Days late | Amount |
|---|---|---|
| Corbin Builders | 61 | $141,800 |
| Lakeshore Facilities | 44 | $96,000 |
| Brightwater Hospitality | 52 | $46,200 |
| Total | $284,000 |
13-week cash forecast
$ thousandsBuilt from actual payment timing, not invoice terms. Dashed line: $180,000 minimum cash under the credit line.
How Harlow & Pine compares with distributors of similar size. Peer figures in this sample are illustrative; in a real checkup we cite the benchmark source for your industry.
| Measure | Harlow & Pine | Peer median | Read |
|---|---|---|---|
| Gross margin | 27.0% | 28.5% | Slightly below, driven by four accounts |
| G&A as % of revenue | 14.8% | 10.5% | High: software, card spend and rent |
| EBITDA margin | 10.0% | 11.5% | Gap closes if findings are actioned |
| Days sales outstanding | 58 | 44 | Collections, not credit terms |
| Days payable outstanding | 41 | 38 | Paying late but missing discounts |
If the owners sold in the next few years, this is roughly the adjusted EBITDA bridge a buyer's diligence team would build, and the items they would push back on.
Adjusted EBITDA bridge
FY2025| Reported EBITDA | $1,840,000 |
| Owner compensation above market | +$165,000 |
| One-time legal settlement | +$72,000 |
| Personal vehicle and travel in opex, unsupported | ($38,000) |
| Unreconciled accrual reversal, Q4 | ($41,700) |
| Run-rate savings from this checkup, actioned | +$212,400 |
| Adjusted EBITDA | $2,209,700 |
What a buyer will question
| FixThree balance sheet accounts unreconciled since Q2, $41,700 unexplained |
| FixPersonal expenses mixed into operating costs |
| WatchTop customer is 7.7% of revenue at 6.2% margin |
| StrengthNo customer above 10% of revenue |
| StrengthMonthly close completed within 15 days all year |
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