9. New Economy
“Do More with Less”
Problems:
–Economic Recession
–High Unemployment
–Increased Costs
–More Competition
–Consumer Demands
–Profit Pressures from Internet
–Others?
10. Solution
GET CLARITY – KNOW WHAT YOU WANT
Use KPI To Create
1. Accountability
2. Establish Action Plans
3. Measure Progress
11. KPI – To Drive Sales
SALES: - Set Specific Goals for:
1. PPD – People per day
2. TPD – Trans. per day
3. Conversion % PPD/TPD
4. Items per Sale
5. Avg $ per transaction
6. Gross Sales
7. Gross Margin %
12. KPI – To Drive Sales
Total Days in the Month 31 Todays Date 31
Sales Manager KPI Report
January 2012 Performance Dashboard
SALES Goal
PPD (People Per Day) 9,300
TPD (Transactions Per Day) 3,720
Conv % (PPD/TPD) 40.0%
Items Per Sale 3.2
AVG $ per Trans $ 55.00
Gross Sales $ 204,600
Gross Margin % 42.1%
13. KPI - To Drive Sales
Total Days in the Month 31 Todays Date 31
Sales Manager KPI Report
January 2012 Performance Dashboard
SALES Goal Actual
PPD (People Per Day) 9,300 9,138
TPD (Transactions Per Day) 3,720 3,780
Conv % (PPD/TPD) 40.0% 41.4%
Items Per Sale 3.2 3.3
AVG $ per Trans $ 55.00 $ 56.25
Gross Sales $ 204,600 $ 212,625
Gross Margin % 42.1% 42.3%
14. KPI – To Drive Sales
Total Days in the Month 31 Todays Date 31
Sales Manager KPI Report
January 2012 Performance Dashboard
SALES Goal Actual Forecast
PPD (People Per Day) 9,300 9,138 9,138
TPD (Transactions Per Day) 3,720 3,780 3,780
Conv % (PPD/TPD) 40.0% 41.4% 41.4%
Items Per Sale 3.2 3.3 3.3
AVG $ per Trans $ 55.00 $ 56.25 $ 56.25
Gross Sales $ 204,600 $ 212,625 $ 212,625
Gross Margin % 42.1% 42.3% 42.3%
15. KPI - Operations
OPERATIONS:
1. Inventory B.O H.
2. R.O.I. – Total Inventory
3. SQI score – Service Quality Indicator
4. COGS - Cost of Goods Sold
5. Sales per S.F. (10,000 s.f.)
6. Gross Sales
7. Gross Margin $
16. KPI - Operations
Total Days in the Month 31
Todays
Date 31
Operations Manager KPI Report
January 2012 Performance Dashboard
Operations Goal
Inventory BOH 400,000
R.O.I Total Inventory 2.40
SQI Score 92%
C.O.G. Sold $ 120,000
Sales per s.f. (10,000s.f) $ 20.00
Gross Sales $ 200,000
Gross Margin $ $ 80,000
17. KPI - Operations
Total Days in the Month 31
Todays
Date 31
Operations Manager KPI Report
January 2012 Performance Dashboard
Operations Goal Actual
Inventory BOH 400,000 398,000
R.O.I Total Inventory 2.40 2.71
SQI Score 92% 93%
C.O.G. Sold $ 120,000 $ 122,684
Sales per s.f. (10,000s.f) $ 20.00 $ 21.26
Gross Sales $ 200,000 $ 212,604
Gross Margin $ $ 80,000 $ 89,920
18. KPI - Operations
Total Days in the Month 31 Todays Date 31
Operations Manager KPI Report
January 2012 Performance Dashboard
Operations Goal Actual Forecast
Inventory BOH 400,000 398,000 398,000
R.O.I Total Inventory 2.40 2.71 2.71
SQI Score 92% 93% 93%
C.O.G. Sold $ 120,000 $ 122,684 $ 122,684
Sales per s.f. (10,000s.f) $ 20.00 $ 21.26 $ 21.26
Gross Sales $ 200,000 $ 212,604 $ 212,604
Gross Margin $ $ 80,000 $ 89,920 $ 89,920
19. KPI – Customer Service
CUSTOMER SERVICE
1. Mystery shop scores – min 85%
2. Mystery phone shops – min 90%
3. Customer on line reviews – min 4 stars
4. Vip Contacts
5. Events in stores – goal attendence
6. Staff Training Sessions
20. KPI – Customer Service
Total Days in the Month 31
Todays
Date 31
Customer Service KPI
January 2012 Performance Dashboard
Customer Service Goal
Mystery Shop 92%
Phone Shop 92%
On Line Reviews 15
VIP Contacts 400
In Store Events 4
Training Session 8
21. KPI – Customer Service
Total Days in the Month 31
Todays
Date 31
Customer Service KPI
January 2012 Performance Dashboard
Customer Service Goal Actual
Mystery Shop 92% 94%
Phone Shop 92% 96%
On Line Reviews 15 18
VIP Contacts 400 422
In Store Events 4 5
Training Session 8 9
22. KPI – Customer Service
Total Days in the Month 31
Todays
Date 31
Customer Service KPI
January 2012 Performance Dashboard
Customer Service Goal Actual Forecast
Mystery Shop 92% 94% 94%
Phone Shop 92% 96% 96%
On Line Reviews 15 18 18
VIP Contacts 400 422 422
In Store Events 4 5 5
Training Session 8 9 9
23. KPI – Finance Department
Control Cash and
Maintain Profitability
25. KPI - Finance
• Finance:
1. Inventory Turnover
2. Gross Margin % or $
3. Profit or Net Income Before Tax % or $
4. Current Ratio – Assets to Liabilities
5. ROA - Return on Assets
6. GMROI
7. Operation costs as % of sales
8. “Other” income in $
44. Streams of Income
Registration and
Processing Fees
a) Lesson Registration
b) Repair Paperwork Fee
c) Band Instrument
Processing Fee
45. Streams of Income
Warranty & Extended
Service Agreements
• Replacement Plans -
Internal vs. External
• Band Instrument or Rental
• Threshold Discussion
47. Streams of Income
In-Store Paid Events
• ‘Home Grown’ Events
• Guitar Repair
• Uke Classes
• Home Recording
48. Streams of Income
Others
a) Lease Negotiations
b) Upgrade Items
c) Bin Items
d) Investment Income
e) Assorted Discounts –
Printing, Check Guarantee, Office Supplies, CC, Airline
50. Thank You!
a Defined Company Culture
George Hines - President George’s Music, Inc.
ghines@georgesmusic.com
Editor's Notes
Why are we here? Ask for feedback -
Universal Laws: Law of Expectation – Make a decision before we get started $ 10,000 min
Question: Is Inventory an Asset or Liability?
Why are we here? Ask for feedback -
Universal Laws: Law of Expectation – Make a decision before we get started $ 10,000 min
Question: Is Inventory an Asset or Liability?