Monitoring Auto Repair Shop Cost Management Efforts

Monitoring Auto Repair Shop Cost Management Efforts

Monitoring efforts at cost reduction will ensure their effectiveness as well as maintain focus on this important issue. Widening profit margins increases profitability and contributes to long term success. Often the demands of day to day business operations take up practically all of a person’s time but cost reduction and process improvement result in more available time. So finding the time to work on cost management is time well spent. The following areas should be evaluated on an ongoing basis:

Evaluate Marketing Costs – Know your customer retention rate and the amount of money spent on retaining existing customers. Knowing the retention cost per customer will contribute to setting prices and developing operating plans. Just as important is the cost of customer acquisition. Taking the dollars spent on advertising for new customers and dividing it by the number of new customers earned within a given time period will determine the cost of acquiring a new customer.

Grade Sales Efficiency – Sales costs are largely influenced by the effectiveness of business support processes. Efficient sales support processes equate to more sales volume. Any areas that require a front line employee to look for needed information can impact the sales process. The ratio of areas that are supported divided by the total number of areas affecting customer interaction will give the sales efficiency ratio.

Improve Shop Proficiency – Increasing the utilization of available labor hours results in higher sales volume and greater overhead absorption. Identifying and correcting factors that negatively impact shop proficiency will improve sales and profits.

Measure the Impact of Shop Management Systems on Costs – There are a number of areas that a shop management system can impact operating costs. The ratio of the number of areas positively impacted by systems to the total potential areas will give the system effectiveness ratio.

Evaluate True Purchasing and Inventory Costs – Check each opportunity to lower costs in this area and determine how many are being taken advantage of.

Article by: Maria

Working happily with National Merchant Services

www.processnms.com

Happy Processing!!!

Article source: http://www.fasttrakauto.com/blog/2012/10/30/monitoring-auto-repair-shop-cost-management-efforts/

Monitoring the Quality of Relationships

Monitoring the Quality of Relationships  Monitoring the quality of relationships can be tricky but can also provide enormous value. Taking an honest look at relationships and what they’re based on requires an open mind and the ability to understand people. Just like any other business endeavor progress can be measured based on achievement of the defined objective. So having a clear idea of what constitutes a quality relationship allows effective evaluation. The following are key points to consider when evaluating relationships:

Evaluate the Basis of Marketing Messages – Are the messages communicated to customers in marketing and advertising relationship based or sales based? Do they say ‘I want you to buy something’ or do they say ‘I want to provide valuable service’? Do they establish and/or reinforce a positive perception of the customer’s relationship with your business? The highest quality marketing messages are relationship based.

Assess Interaction with the Customer at the Point of Sale – Is the relationship based on the sales process or are sales generated through the relationship? Is interaction with the customer focused on sales or is it advisory in nature? If the customer relationship is at the forefront in the sales process the quality of customer service is of the highest caliber.

Evaluate Business Processes and Procedures – Are the business processes and procedures within the company clearly defined and documented? Do all people involved in the process understand the overall process and their role in it? Is information reporting an integrated part of the process? If business processes are running as efficiently and smoothly as possible they’re making the maximum contribution to positive relationships.

Grade the Impact of Information Systems on Customer Relationships – Do documents and correspondence with the customer communicate and reinforce the customer relationship? Do they communicate service and value? If the primary impact of information systems is on relationship building then the most positive contribution is being made.

Evaluate the Quality of Employee Relationships – Are employees competitively compensated? How does turnover compare to industry averages? Are employee skills improved to keep up with industry advances? Are employees given the opportunity to contribute to the advancement of the business? Are they recognized for their contributions? The answers to these questions will indicate the quality of business/employee relationships.

Measure the Caliber of Supplier Relationships – Are the procedures in the shop set up to support the supplier’s best efforts to provide quality service? Does the supplier meet the basic criteria for a positive relationship? Does the supplier go beyond these criteria? If so is the supplier recognized for it? These indicators will give a good assessment of the quality of supplier relationships.
Relationships are an important ingredient in the recipe for business success. Evaluating them and focusing on improving them will provide a positive contribution to any company. Monitoring key relationships and the factors that affect them with the goal of improving them as much as possible will make a business stand out and excel.

Article by: Maria

Working happily with National Merchant Services

www.processnms.com

Happy Processing!!!

Article source: http://www.fasttrakauto.com/blog/2012/09/28/monitoring-the-quality-of-relationships/

How to Make a Restaurant Budget

One of the trickier aspects of opening up a new restaurant is figuring out an adequate budget. Even experienced restaurant owners and managers can be way over or under on given budget items or sometimes just miss certain items that should have been included in the budget. That said, a carefully thought-out and planned budget is an essential part of a restaurant business plan, and putting in the time to make a comprehensive budget up front can save a great deal of time and expense later.

1. Create a list of categories of expenses. Start with basic categories like mortgage- or lease-related expenses, utilities, licenses and permits, employee-related expenses, equipment costs, food expenses, marketing and so forth, and then take a few hours to mull and brainstorm to make sure you are covering the details.
2. Include a miscellaneous expense category. Even if you are operating on a relatively tight budget, it is important to have at least a small miscellaneous expenses category. Otherwise you are almost guaranteeing that you will not be able to stick to your budget.
3. Research the amount you will need for each category of your budget. Many expenses like rent, utilities and employee hourly costs are highly predictable, but some others, like food or marketing expenses, can vary significantly over a relatively short period of time. Therefore, consider certain budget items more flexibly and/or plan to revisit those categories quarterly instead of annually.
4. Complete your budget by adding the amounts needed for each budget category and totaling up all the categories. Most business plans create an annual budget, but especially for a new restaurant business, consider preparing quarterly or even monthly budgets so you can get a real feel for all of the expenses involved in operating a restaurant.
5. It is important to include at least some funds for marketing your restaurant in your budget. Word of mouth will certainly help business in the long run, but you also need some kind of marketing/advertising to get your name in the public eye.

Article by: Maria

Working happily with National Merchant Services

http://www.processnms.com

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Read more: How to Make a Restaurant Budget | eHow.com http://www.ehow.com/how_8452157_make-restaurant-budget.html#ixzz2LY7Y3Tn9

How to Raise Your Retail Associates’ Conversion Rate

How to Raise Your Retail Associates’ Conversion Rate

Brick and mortar retail stores face the daunting challenge of getting their retail associates to convert customers who are lookers into ones who are buyers.
Fortunately, the brick and mortar retailer has one significant advantage, the customers are actually standing in front of her or his employees and not just remotely connected via the Internet.
To make the most of this advantage, a retailer must use a variety of techniques in retail sales training to raise the conversion rate of their retail associates.

Here are 5 ways to raise your retail associates’ conversion rate…

Facilitators, Not Just Greeters
Saying, “Hi” is good but being interested in a customer and getting them to their desired destination in a minimum of time is great. Most customers have a buying agenda and will move on to another retailer if they do not perceive that your establishment appreciates their business.  No amount of up selling can overcome a customer who is frustrated.

Demonstrators, Not Just Pointers
We’re all familiar with the stores that mandate that their employees bring a customer to the exact product that the customer is looking for. It’s a nice idea but usually poorly implemented. Mostly, at the end of the short trip, the employee (a pointer) merely wags his finger and says, “It’s right there. Have a nice day.” What a missed opportunity!
Instead, retail associates who should remove the product from the shelf, demonstrate it to the customer using features and benefits and, if appropriate, ask them if they want two or three. It is a simple technique but one that works wonders on your bottom line.

Fitting Room Salespeople, Not Security Guards
I’m told the experience at a Victoria Secret is awesome. That’s because they put their focus on getting a customer to a fitting room, so they can show her everything that will fit perfectly. The best retailers station their best employees at the fitting rooms to build rapport and sell the merchandise at the fitting room. Putting your least trained employee to clean up and watch for shoplifters ignores the fact customers who use a dressing room are 70% more likely to buy.

Personable, Not Just Cashiers
In case it’s not obvious, the cashier is the final place where an employee will touch the customer. As such, they still have influence over the customer’s actions. The customer is generally relaxed and impulse items are easier to sell.

The idea that cashiers are only paid to take your customers’ money and say thank you is nonsense. As your brand’s last touch-point, your cashiers must be personable or they are just not worth their payroll. In many stores, cashiers can be adding additional items to an order.
Expect more and you will get more.

Sales Trainers, Not Just Managers
By the same token, a manager is not just a person who can fill any void left by a no-show employee. A retail manager must understand the concepts mentioned above and create an atmosphere where these concepts of retail sales training come to life. Be sure that you have chosen the right sales trainer for your retail location, not just an inventory manager.

The Bottom Line
The majority of a brick and mortar store’s customers are looking to buy. Do not waste the opportunity to transform your lookers into buyers by utilizing the above concepts. Increasing your conversion rate will mean the difference between barely surviving and having a thriving business.

Article by: Maria

Working happily with National Merchant Services

http://www.processnms.com

Happy Processing!!!

http://www.retaildoc.com/blog/how-to-raise-your-retail-associates-conversion-rate/