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