Revving Up Revenue
Daniel JobeFriedman, Kannenberg & Co, P.C.
“When something is measured, it improves. When something is measured and reported, it improves exponentially.” The Hawthorne Effect
Objectives
Determine how to get your staff
involved with revenue generation
Develop a system to track revenue
generated by income type
Day Off – now you can take one!
Exponential Delegation
What is the Missing Piece?
The Objective
Teach them…..
Communicate….
1. Assign revenue activity to specific staff
2. Set benchmarks for accountability
3. Track progress individually
4. Provide tools to achieve goals
How–To’s
Ten-Year Industry Sales Trajectory
20012002
20032004
20052006
20072008
20092010
$6.8 $6.7$6.8
$7.0
$7.8$7.5 $7.4
$7.1
$5.9
$6.4
Retail Sales Values in Billions of Dollars
The Music Trades, April 2011
Retail Sales Values in Billions of Dollars
Total Revenues$850,000
Sales (Inv.)$450,000
Sam$300,000
Jeff$150,000
Rental Income$300,000
Bob$300,000
Lesson Income$50,000
Chester$50,000
Repair Income$50,000
Ralph$35,000
Bert$15,000
Items to Breakdown per Sales Staff:
• Gross Profit Dollars vs. Salary (all annualized)
• Items per Sale
• Total Sales
Sales Staff
Group Sales PerformanceIncrease
Sales Staff Summary Prior Year Percent Goal
Total Sales 895,000$ 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
Individual Sales Performance
Items to consider:
• Paying units by day
• Units repaired annually per person
• Average repair charge
Repair Staff
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
Individual Repair Performance Analysis
Inspect what you expect!
Items to consider:• Individual Lessons
• Space utilization• Incentives by Student Count
• Group Lessons• Large profit generator• Safe learning environment • Promotes family activity
Music Lessons
Lesson Tracking
• Relationships are the key!
Analyze per Route Day/Week• Schools Visited• Active Rentals• Units Repaired • Step-ups Generated
Rentals
“The easiest thing is to react.
The second easiest is to respond. But
the hardest thing is to initiate.”-Seth Godin
1) Distribute the revenue load
2) Track the progress
Visit www.fkco.com for a more detailed spreadsheet
on ways to track performance for various
revenue sources.
Wrap-Up
Any
Questions?
“Free” Consulting MeetingsAt the Show
Contact Jen outside the Idea Center entrance
after this session to set up a meeting time