Its Not About Sales…But          Profits        Coach Thom Finn
Know Your #s…by product•   Example: Thoms Birdhouses•   Revenues, Sales Income•   Cost of Goods Sold, Indirect Labor,•   G...
Know Your #s…by product•   Example: Thoms Birdhouses•   Gross Margin means…•   Birdhouse Gross Profit as $•   Birdhouse Gr...
Know Your #s…by product•   Exercise on 1 of your products•   What is the SALE Price?•   What is cost of labor?•   What is ...
Gross Profit per Unit…
Gross Profit vs. Net Profit…What’s the unit break-even for this company?
Know Your #s…for your whole              business•   TOTAL Gross Profit•   FIXED Expenses are….•   Gross Profit-Fixed =NET...
Know Your #s…for your whole              business•   Exercise on typical month•   Total Sales were_____•   Your Gross Prof...
Break Even• Enough Gross Profit to cover all fixed• Break Even Enough Gross to cover fixed  AND a goal of profit• Example:...
Break Even*•   Break Even on ANYTHING•   Break Even on advertising•   Break Even on machinery•   Break Even on Team•   Bre...
Return on Investment (ROI)*• ROI Math• ROI analysis example Thoms Birdhouses
Dogs and Cows: Your Product Mix• A Product Mix simple means…..• Think about your product MIX and what  you are offering le...
Production Goals• Know in advance how much you should  make• Forecasting Demand• Keep a History: What sells well, what  do...
…thisis
Production Goals•   Restocking Levels•   The Real Damage of Empty Shelves•   Staying stocked looks better more sales•   Ho...
What to do from here…..• Start from the top of the list.• Work this list in order,  – Know your numbers, etc.• Questions a...
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It's Not About Sales...It's Profit

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  • Profit = Sales – Variable Costs (or Cost of Sales) – Fixed Costs
  • Profit = Sales – Variable Costs (or Cost of Sales) – Fixed Costs
  • It's Not About Sales...It's Profit

    1. 1. Its Not About Sales…But Profits Coach Thom Finn
    2. 2. Know Your #s…by product• Example: Thoms Birdhouses• Revenues, Sales Income• Cost of Goods Sold, Indirect Labor,• Gross Profit• Fixed Expenses• Net Income
    3. 3. Know Your #s…by product• Example: Thoms Birdhouses• Gross Margin means…• Birdhouse Gross Profit as $• Birdhouse Gross Profit as %• Margin is important, but you cant take it to Bank
    4. 4. Know Your #s…by product• Exercise on 1 of your products• What is the SALE Price?• What is cost of labor?• What is the cost of material?• Any other costs to produce?• S-COGS=GP• What is your GP$?• GP as %?
    5. 5. Gross Profit per Unit…
    6. 6. Gross Profit vs. Net Profit…What’s the unit break-even for this company?
    7. 7. Know Your #s…for your whole business• TOTAL Gross Profit• FIXED Expenses are….• Gross Profit-Fixed =NET Income• What are Thom’s Fixed?• What was his GP by product?• So GP by unit x______= Total GP• So Thom’s Net Income =GP-Fixed
    8. 8. Know Your #s…for your whole business• Exercise on typical month• Total Sales were_____• Your Gross Profit % is____• So your Gross Profit $ is____• What are you typical fixed?______• So Net Income is GP-Fixed or______
    9. 9. Break Even• Enough Gross Profit to cover all fixed• Break Even Enough Gross to cover fixed AND a goal of profit• Example: Thoms Birdhouses Business: – Fixed Expenses are $1000 – And GP% is______________ – What is Break Even in Sales?
    10. 10. Break Even*• Break Even on ANYTHING• Break Even on advertising• Break Even on machinery• Break Even on Team• Break Even Analysis BEFORE,• Return on Investment After
    11. 11. Return on Investment (ROI)*• ROI Math• ROI analysis example Thoms Birdhouses
    12. 12. Dogs and Cows: Your Product Mix• A Product Mix simple means…..• Think about your product MIX and what you are offering learn from the big boys• All Products Great and Small….Impulse• Dogs are….• Cows are…..• The Pin Ball Machine principle: Always a Dog, Always a Cow
    13. 13. Production Goals• Know in advance how much you should make• Forecasting Demand• Keep a History: What sells well, what doesn’t sell well.• Simple Turn Tracking Sheet• What turns the fastest? Make more• What turns slowest? Make less
    14. 14. …thisis
    15. 15. Production Goals• Restocking Levels• The Real Damage of Empty Shelves• Staying stocked looks better more sales• How to Stock if you are tight on Cash- Dollar General Solution …thisis a white text box ………………………………………… ………………………………………
    16. 16. What to do from here…..• Start from the top of the list.• Work this list in order, – Know your numbers, etc.• Questions and Discussion….

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