shoot for the $tar$, you might hit the moon!

Shoot for the $tar$, You Might Hit the Moon!Daniel Jobe

Friedman, Kannenberg & Co, P.C.

“When something is measured, it improves. When something is measured and reported, it improves exponentially.”

The Hawthorne Effect

History

Reinvention

What is the Missing Piece?

Each Employee Should Know…

The Objective

Each Employee Should be Informed…

Concept

1. Assign anticipated revenue to specific staff

2. Break figures down for accountability

3. Track progress individually

4. Provide tools to achieve goals

Ten-Year Industry Sales TrajectoryRetail Sales Values in Billions of Dollars

$7.0$6.8$6.7$6.8

$6.4$5.9

$7.1$7.4$7.5

$7.8

20012002

20032004

20052006

20072008

20092010

The Music Trades, April 2011

Sales – the roller coaster

Items to Breakdown per Sales Staff:

• Gross Profit Dollars vs. Salary (all annualized)

• Items per Sale

• Total Sales

Group Sales PerformanceIncrease

Sales Staff Summary Prior Year Percent Goal

Total Sales 895,000$ 13.0% 1,011,350$

Gross Profit 350,000$ 7.2% 375,200$ Margin % 39.1% 37.1%

Items per Sale 2.25 10.0% 2.48

Repair – the consistent

Items to consider:• Paying units by day

• Units repaired annually per person

• Average repair charge

Repair Performance AnalysisIncrease

Repair Staff Summary Prior Year Percent Goal

Income Repair Labor 165,000$ 24% 204,600$ Repair Parts 45,000 20% 54,000

TOTAL INCOME 210,000 258,600

Paying Units Repaired 2,350 15% 2,703 Average Repair Dollars per Unit 89.36$ 95.69$ Average Units per Working Day 9.40 10.81

Inspect what you expect!

Lessons – traffic generator! Items to consider:• Individual Lessons

• Space utilization• Incentives by Student Count

• Group Lessons• Large profit generator• Safe learning environment • Promotes family activity

Rentals – the annuity!

• Relationships are the key, so track them!

Analyze per Route Day/Week• Schools Visited• Active Rentals• Units Repaired • Step-ups Generated

“The easiest thing is to react.

The second easiest is to respond.

But the hardest thing is to initiate.”-Seth Godin

Wrap-Up

• Distribute the revenue load• Utilize more resources • Visit www.fkco.com for a more detailed spreadsheet

on ways to track performance for various revenue sources.

AnyQuestions?

“Free” Consulting MeetingsAt the Show

Contact Jen outside the Idea Center entrance

after this session to set up a meeting time