Atelier Fontblanc
“Stepping out of the price war to recover margins.”
Context & Challenges
Founded in 1978, Atelier Fontblanc is a family-owned midcap that built its reputation on the quality of its high-precision machined parts. For three decades, the company supplied major French and German automotive suppliers. However, starting in 2018, pricing pressure from Asian players — particularly Chinese and Taiwanese — began to severely erode margins in this segment.
In 2021, the gross margin had fallen below 28%, an insufficient level to finance the investments in 5-axis machines required to maintain technological competitiveness. The company's president, aware that continuing on the same path meant a slow decline, chose to challenge the business model.
“We were producing volume to survive, but the volume was killing us. We needed to know if we could exist differently — and if so, how.”
Our Diagnostic
Our analysis revealed a counter-intuitive reality: Atelier Fontblanc already possessed the technical capabilities to address the aerospace and medical markets, two sectors where certification requirements and extreme tolerances naturally exclude low-cost competitors. However, the company was not commercializing them — due to the lack of a structured sales approach for these sectors and communication adapted to these buyers.
Furthermore, our pricing review showed that on parts with the highest added value, Atelier Fontblanc was charging rates 12 to 18% lower than its direct competitors — without this being justified by any competitive advantage in these segments.
Approach & Methodology
We structured the mission around two simultaneous axes: **reconfiguring the client portfolio** and **redesigning the pricing policy**. Regarding the portfolio, we mapped 200 clients based on their profitability profile, sector, and growth potential. 34 clients were identified as 'margin destroyers' and were subjected to a price review or progressive disengagement.
In parallel, we supported the sales team in approaching the aerospace and medical sectors: identifying major target decision-makers (tier 1 and tier 2), structuring technical arguments, and preparing for quality audits (EN9100, ISO 13485). Two strategic tenders were identified, and a dedicated service offering was built for each.
Mission Roadmap
Results Achieved
The repositioning also had an unexpected effect on recruitment: the company observed a clear improvement in its attractiveness to qualified machinists, who are more inclined to join an organization addressing high-tech sectors.
Scope Exclusions
“They told us things no one wanted to hear: some of our clients cost more than they brought in. It was not easy to accept, but it was the key.”
Henri Fontblanc — President, Atelier Fontblanc
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