Made for Dana Whitfield at Larkspur Industrial Supply · November 7, 2026
What AI adds to Larkspur Industrial Supply's value
About $306,000 a year in added profit, worth about $1,530,000 at a 5x multiple.
Larkspur's numbers before and after AI
| Measure | Today | With AI |
|---|---|---|
| Yearly profit | $2,400,000 | $2,706,000 |
| Margin | 10.0% | 11.3% |
| Company value at 5x profit | $12,000,000 | $13,530,000 |
| Added to company value | +$1,530,000 |
Office payroll is 18 people × $68,000 = $1,224,000 a year. When each person is at least 2x as productive, half their week is freed: $612,000. Half of that is counted as profit, since the rest goes into growth: $306,000 a year, worth $1,530,000 at 5x.
Where the $306,000 comes from, by department
| Department | What changes | Annual value |
|---|---|---|
| Accounts payable and finance | Invoice entry, matching and month-end close are drafted by AI, so one AP specialist covers 3.4x the work. | $90,000 |
| Customer service and order entry | Orders from email and PDF are entered automatically, and status questions are answered from live data. | $85,000 |
| Purchasing | Reorder suggestions and PO drafts are built from stock levels and lead times. | $55,000 |
| Sales support and quoting | Quotes are drafted from price lists and past orders in minutes. | $46,000 |
| Admin and HR | Onboarding packets, scheduling and policy questions are handled by agents. | $30,000 |
| Total | $306,000 |
What happens next
The next step is a North Star Assessment. We interview your leadership and every department, map the processes and review your data and systems. The North Star Report then ranks every opportunity by what it adds to your P&L.
If the North Star Assessment doesn’t find annualized savings of at least 5x its fee, it’s free.
What this has done for other companies
- We set up an accountant to take on ~3x the work, and our client pocketed the $200k+ they’d budgeted for new hires.
- At one client, we built AI for role after role so one person does the work of a 2‑5 person team. Revenue grew while headcount shrank.