INTERNAL PROPOSAL LA Fitness: How can we increase EFTs?
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WHATS THE PROBLEM? LA Fitness is a company that strives to
provide the most comfortable working and exercise environment for
those who enter its doors. As a business, we must also strive for
productivity and profitability. As of 2013, EFTs have dropped from
5 million to 3.1 million. We need to do better Our MOTIVATION level
tank needs to be FILLED UP.
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HOW DO WE SOLVE THIS PROBLEM? With each EFT cleared up, LA
Fitness earns on average of $35 Average salary of front desk/EFT
staff member= $8.00/hr Average front desk/EFT shift= 4 hrs One EFT
clear up covers 95% of a staff members daily shift salary EFT staff
member, on average, can produce 15 EFT clear ups in 4 hour shift LA
Fitness needs to hire more EFT staff members EFT clear ups are easy
money, but the staff to produce them arent availiable Proposal
includes each facility to increase EFT staff by 4 individuals and
increase shift to 6 hours, from the regular 4 hours.
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COST ANALYSIS $8.00/hour staff salary Each clear up yields $35
profit Current: $8.00/hr x 4 hours = $32 15 EFTs x $35 = $525
$525-$32 ( salary ) = $493 profit on each shift Currently, we are
making pocket change!!!!
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COST ANALYSIS Proposal: $8.00/hr x 6 hours = $48 30 EFTs x $35
= $1,050 $1,050-$48 = $1,002 Over 50% profit increase by adding 2
extra hours. We need to be making REGISTERS full of PROFIT!
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HOW DO WE DO THIS? May: Each Operations Manager hires 2 extra
staff members Begin training them for EFT Determine most productive
hours by doing time study
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June Begin staffing for EFT Document and track EFT ratios and
productivity per hour If staff arent producing, hire new staff or
rotate staff to increase productivity Report back to District
Managers with results and opinions on long term plausibility of
proposal.
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IN CONCLUSION We need to produce productivity and productivity
Each staff need to be retrained and new staff brought on More hours
per shift will increase profitability and increase employee morale
as commission is involved (included in profit analysis) LETS ROLL
THE DICE AND SEE IF A SIMPLE CHANGE CAN CHANGE THIS COMPANY FOR THE
BETTER!
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TRANSMITTAL LETTER On behalf of LA Fitness, I am delighted to
present this proposal regarding how EFTs and productivity can be
decreased. From a previous round-table discussion, the points
discussed are included in this proposal. Increasing Profitability
Increasing Hours New staff Analysis of proposal after one month
Operations Manager opinions As a company devoted to bettering the
lives of individuals who want to better their health and
lifestyles. But as a business, in order to remain helpful in many
lives, we must make a profit so we can increasingly better our
company for everyone.
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THANK YOU THANK YOU TO EVERYONE FOR YOUR TIME!!!! LETS MAKE
THIS A GREAT YEAR!